Digital asset markets experienced a significant risk-on rally Sunday and Monday as reports emerged of potential U.S.-Iran ceasefire negotiations involving a 45-day pause and reopening of the Strait of Hormuz. Ethereum outperformed Bitcoin with a 4.8% gain to $2,138, while Bitcoin rose 3% to $69K, according to CoinMarketCap and Blockchain Magazine. The cryptocurrency market's positive response reflects investors' appetite for risk assets when geopolitical tensions show signs of easing.
Beyond the macro catalyst, Ethereum's fundamentals continue strengthening with staking participation reaching approximately 32% of total ETH supply, as reported by CoinGecko. This represents a significant supply reduction that creates deflationary pressure on the asset. DeFi total value locked increased $2.1 billion week-over-week to $58.3 billion, with Ethereum capturing 62% of flows, demonstrating sustained ecosystem growth despite market volatility.
