Layer-2 and DeFi Tokens Drive Crypto Rally as Post-Fed Hike Jitters Ease

Layer-2 and DeFi tokens are spearheading a broad cryptocurrency market rebound as investor anxiety following the Federal Reserve's latest interest rate hike begins to subside. Major digital assets including BTC and ETH are posting gains, with Layer-2 scaling solutions and decentralized finance protocols outperforming the broader market. The recovery signals renewed risk appetite among traders who had grown cautious after the Fed's tightening cycle. Market analysts note that the fading of post-hike nerves has encouraged capital to flow back into higher-beta crypto sectors such as DeFi and Layer-2 networks, which had been among the hardest hit during the recent downturn. ETH and BTC remain key barometers for overall market sentiment as the crypto sector attempts to sustain its upward momentum.