Cardano (ADA) and Ripple (XRP) saw declines as traders wait for the Federal Reserve’s interest rate meeting. Bitcoin remains stable above $94,000, while DeFi tokens like AAVE and Hyperliquid’s HYPE are gaining popularity due to their strong fundamentals. Overall, market sentiment is cautious amid inflation concerns and U.S.–China trade tensions, with expectations of no major shifts from the FOMC meeting.
Cardano’s ADA and Ripple’s XRP are facing some tough times, especially as traders brace for the upcoming Federal Reserve meeting that many are calling a ‘coin-flip’ event. With Bitcoin holding steady at above $94,000, some cryptocurrencies did see slight drops, including ADA and XRP which fell by nearly 4%. Meanwhile, various DeFi tokens like AAVE and CRV are gaining traction, showcasing a shift in focus back to projects with solid fundamentals.
Throughout the market, Bitcoin’s stability has been notable, even after dipping slightly below that $94,000 line on Sunday. Although ADA and XRP struggled, Ether saw a minimal decline of nearly 1% while BNB gained 1.3%. In a broader sense, the CoinDesk 20 index—a liquid benchmark for the top tokens—saw a drop of around 1.8%. The rise in DeFi tokens suggests that traders seem more inclined to invest in projects that offer utility and solid yield opportunities.
Kay Lu, the CEO of HashKey Eco Labs, spoke about this shift, expressing that as memecoins lose popularity, many are opting for cryptocurrencies with well-thought-out economics. The DeFi sector is reportedly flourishing through this transition, especially considering that Bitcoin has shown less volatility lately. “As the market remains on edge about the macroeconomic climate, DeFi could be a refuge for investors,” Lu added, pointing towards hopes of a sustained uptrend in the DeFi space.
One standout in the market is Hyperliquid’s HYPE, which surged an impressive 72% in recent days. Both AAVE and CRV also saw increases of up to 40%. Traders are now turning their gaze towards the FOMC meeting, where a pause in rate hikes is the consensus expectation, but the uncertainty surrounding inflation and trade relations—especially with China—continues to hang over the market like a dark cloud.
Augustine Fan, the Head of Insights at SignalPlus, weighed in on the situation, mentioning that there wouldn’t likely be massive shifts in the markets due to the meeting, calling it a “coin flip.” Crypto markets might take directions based on overall earnings growth and how effectively the economy adjusts to changes from trade policies. This cautious outlook aligns with the mixed signals derived from both stock and bond markets, where some believe recession risks are low.
Last week also saw President Trump confirming there aren’t any immediate plans for discussions with China, limiting hopes for a quick resolution in U.S.–China trade dynamics. Nevertheless, whispers of potential isolated trade deals have helped to maintain positive risk sentiment, underscoring the volatile yet hopeful climate of the market.
In the midst of these fluctuations, Shaurya Malwa stands out as a leading voice on the CoinDesk tokens and data team across Asia. His focus continues to be on crypto derivatives and the broader DeFi landscape that’s evolving amidst these turbulent times. He himself holds a varied portfolio, showing his commitment to the sectors he reports on.
