Crypto has rallied steadily over the past week, with Bitcoin starting the week under \$50k and getting quite close to its all-time high near \$60k on Wednesday night. It’s fallen a bit since then, but overall the trend has remained positive – futures premia have also been steadily rising with crypto, indicating that, as we expect, this rally has been driven at least partially by buyers using the high-leverage products popular in crypto trading. For the most part, major altcoins have been lagging BTC over the past day or so, with ETH for instance getting nowhere near its all-time high from a few weeks ago.

Exchange tokens, on the other hand, have continued over-performing – again a reflection of the idea that they accrue inherent value not only as crypto goes up (though they do have a BTC beta) but also as crypto volatility and volume remain elevated, since they’re essentially paid exchange fees via buy-and-burns. Many DeFi coins ahve also performed well for (likely) similar reasons, and overall this rally has been experienced a lot more strongly for smaller and newer altcoins than for the major altcoins.