Avalanche & Hyperliquid: Leading the Crypto Surge

Thursday saw Avalanche (AVAX) and Hyperliquid (HYPE) spearheading an altcoin surge, as digital assets reacted favorably to both the Federal Reserve’s recent rate adjustment and advancements within specific projects.

AVAX
experienced a significant rise of 10.1%, reaching $32.59, while
HYPE
increased by 7.2% to $58.43 over the past 24 hours, based on CoinGecko data.

Other prominent altcoins also saw gains, with
Dogecoin
(DOGE) increasing by 5.4% to $0.27,
Solana
(SOL) rising by 4.5% to $244, and Cardano (ADA) rising 4.3% to $0.90.
(ADA) rising 4.3% to $0.90.

Bitcoin
(BTC) held its value above $117,000 with a slight increase of 0.3%, while
Ethereum
(ETH) showed a 2.1% gain, reaching $4,588.

This upward trend follows the Federal Reserve’s widely anticipated decision to reduce interest rates by a quarter of a percentage point,
bringing the federal funds rate
down to a range of 4.25% to 4.50%.

In the immediate aftermath of the announcement, Bitcoin and other major cryptocurrencies largely
remained stable
, as investors had already factored in the expected Fed move.

According to Min Jung, a senior analyst at Presto, a quantitative trading firm, while the Fed’s action boosted overall risk appetite, AVAX’s exceptional performance appears to be linked to Avalanche’s announcement of a $1 billion Digital Asset Treasury plan. Jung shared this insight with
Decrypt
.

The Avalanche Foundation is reportedly in advanced discussions to raise $1 billion through a Nasdaq-listed entity supported by Hivemind and a Dragonfly-sponsored SPAC. As reported by the
Financial Times
, the raised funds are intended for discounted AVAX buybacks.

Furthermore, Bitwise submitted paperwork on Monday for an
AVAX ETF
, utilizing Coinbase for custody of the digital assets, potentially furthering institutional adoption of the token.

Jung also suggested that the positive momentum could persist in the short term, given that the most significant macro event, the FOMC meeting, has concluded. However, with the rate cut largely expected, future price movements will depend more on project-specific announcements and news.

Ganesh Mahidhar, an Investment Professional at Further Ventures, stated to
Decrypt
that Hyperliquid’s USDH stablecoin is gaining traction from numerous institutions due to its ability to provide a user experience as smooth as a centralized exchange, while maintaining custody outside of the exchange itself.

He added that while the rate cut announcement certainly had an impact, it may be temporary, as the cuts had been expected by the markets for several months.

Nic Puckrin, founder of The Coin Bureau, told
Decrypt
that the signal of the rate cut, rather than its specific size (25bp), is the important factor. He noted that it demonstrates the Fed is beginning to ease monetary policy after a period of inflation and weaker labor market data.

Puckrin cautioned that a “sell the news” pullback is possible, with meme coins being particularly vulnerable to rapid gains followed by sharp declines.