Bitcoin, DeFi and Layer-2 tokens rally as macro backdrop softens

Crypto markets extended gains Friday, with Bitcoin rising 2.1% to $78,131.54 and a broad cohort of DeFi and layer-2 tokens outperforming as macroeconomic uncertainty eased. The 10-year Treasury yield slipped below 5%, and Brent crude fell to under $103, reducing post-Fed rate-hike inflation concerns and fostering a risk-on sentiment. Among CoinDesk’s 100 constituents, 98 advanced, with the DeFi Select Index surging 8.3% since midnight UTC and 16% over the past 24 hours, while Bitcoin’s open interest in futures grew modestly to 680,000 BTC, reflecting a slight increase in long positions despite remaining light by historical standards. Institutional conviction remained elevated, with Binance’s trader long-short ratio at 1.52 and a long-short positions ratio of 2.36, indicating concentrated bets among large holders. DeFi tokens led the move, with Uniswap (UNI) up 13% since midnight and 25% over 24 hours, Ethena (ENA) gaining 9.6%, and Lido’s liquid-staking token (LDO) rising 6.6%. Layer-2 tokens also drove gains, with Starknet (STRK) up 18% to $70.95, Arbitrum (ARB) at 20.9 cents (up 25%), and Stacks (STX) and Optimism (OP) advancing 9.2% and 8.9%, respectively. Solana (SOL) added 4.5% to $106.14, though its ecosystem saw mixed performance, with Raydium (RAY) up 16% and Jito (JTO) lagging 1.6%. Bitcoin’s implied volatility dropped to May’s lows at 36%, signaling reduced near-term volatility expectations, while options skew turned short-term bullish for Bitcoin and Ethereum. The Altcoin Season index rose to 44/100, indicating broad speculative momentum. Thursday’s gains were led by Zcash (ZEC), which traded up 7.6% over 24 hours, while Dash (DASH) and World Liberty Financial (WLFI) were the only CoinDesk constituents in the red, losing 0.53% and 0.31%, respectively. Institutional positioning data suggested a structural inflow of capital, with futures market open interest expanding to $141.2 billion, though daily trading volume dipped slightly to $95 billion. The shift reflected a return to DeFi and layer-2 assets from privacy-focused tokens that had driven Thursday’s gains.