Ethereum Surges Beyond $2700 as SEC Shows Support for DeFi

Ethereum has experienced a significant surge in value, climbing above $2,700, following positive signals from the U.S. Securities and Exchange Commission (SEC) regarding decentralized finance (DeFi). The surge in value comes after SEC Chairman Paul Atkins expressed support for decentralization and the potential benefits of self-custodying crypto assets during the Crypto Task Force Roundtable on June 9.

At the time of writing, Ethereum (ETH) is up 8% on the day to $2,750, showcasing a strong market reaction to Atkins’ comments. The chairman emphasized the importance of economic liberty, private property rights, and innovation, highlighting that these values are intrinsic to the DeFi movement.

In response to the supportive stance from the SEC, DeFi tokens such as Uniswap (UNI), SKY (formerly MakerDAO), and Aave (AAVE) have experienced significant gains. UNI, SKY, and AAVE surged by 25%, 16%, and 15% respectively, with the DeFi sector’s market capitalization reaching $150 billion, according to Coingecko.

While Ethereum has seen substantial gains, other major cryptocurrencies like Bitcoin (BTC), XRP, and Solana (SOL) have also witnessed modest increases in value. BTC and XRP edged up by 1% over the past 24 hours, trading at $108,800 and $2.28, while SOL climbed 1.7% to $158. The total cryptocurrency market capitalization has remained stable at $3.55 trillion, with leveraged liquidations totaling $489 million, including liquidations of around $158 million for ETH.

In the realm of exchange-traded funds (ETFs), U.S. spot BTC ETFs attracted $386.27 million in inflows, while spot ETH ETFs saw around $53 million in inflows, as reported by SoSoValue data.

The positive sentiment emanating from the SEC’s recent remarks has had a notable impact on the cryptocurrency market, instilling confidence among investors. Analysts like Paul Howard, Senior Director at Wincent, believe that Ethereum’s outperformance is a direct result of the SEC’s supportive tone towards DeFi. Looking ahead to the third quarter, policy changes in the U.S. are expected to influence Wall Street and drive interest in risk assets.

Mena Theodorou, co-founder of crypto exchange Coinstash, underscored the growing momentum surrounding Ethereum, noting that Ethereum ETFs have experienced 15 consecutive days of net inflows, totaling close to $837 million. In addition, institutional support for Ethereum appears to be strengthening, with reports indicating that BlackRock has added over $500 million in ETH to its portfolio in the past two weeks. These developments suggest that traditional finance is increasingly interested in establishing a long-term position in Ethereum.

Overall, the positive sentiment sparked by the SEC’s recent stance on DeFi has significantly impacted the cryptocurrency market, leading to notable gains for Ethereum and other major cryptocurrencies. This shift in sentiment underscores the potential for further growth and adoption within the DeFi sector, as well as increased interest from institutional investors looking to capitalize on the evolving crypto landscape.