Although headwinds remained, investors put aside sentiment on inflation, central bank monetary policy and the economic outlook.
Fed Chairman Powell’s testimony and the Fed’s commitment to bring inflation back to its target at all costs will continue to resonate. A sustained downward trend in crude oil prices would alleviate some counter pressures.
Two bullish sessions leave the total market cap in positive territory for the week as it fell over $350 billion for June. Currently sitting at $937 billion, investors will want to see the total market capitalization heading towards the $1.5 trillion mark to change sentiment.
Friday’s bullish sentiment was evident in the top ten of the crypto market.
SOL and XRP lead the way, with gains of 9.8% and 10.1%, respectively, with ETH up 7.1%.
ADA (+5.2%), BNB (+5.2%) and DOGE (+6.3%) were not far behind, while BTC followed (+1.2%).
In CoinMarketCap’s top 100, Axie Infinity (AXS) was in the lead, up 15.8% at press time. The news of Axie Infinity starting to reimburse victims of the Ronin Bridge hack, starting next week, provided some support.
Outside the top 100, but likely to reappear, is yearn.finance (YFI), which rose 46%.
Improving crypto market conditions have supported DeFi tokens this week. On Friday, Avalanche (AVAX) and Near Protocol (NEAR) were heading for gains of 13% and 12%, respectively.
While DeFi tokens have found support, the total value locked continues to be at the March-April 2021 levels. At the time of writing, the total value locked stands at $76.7 billion. Although up 5.2% on Friday, TVL is well below a December peak of $254 billion.