Aave rose by 11% due to market speculation about possible token burn, despite the 10-year U.S. Treasury yield remaining at 5.234%, and among the CoinDesk 100 constituent stocks, 72 still saw increases.

Bitcoin recovered from its losses on Monday and traded at $84,170 on Tuesday, up 0.82% from midnight of UTC; the CoinDesk 100 index rose 0.89% to close at 1,904.49.

DeFi leads the gains again, with DeFi Select Index rising by 5.0% and Aave rising by 11%. Previously, Stani Kulechov indicated that token destruction could become part of the upcoming Aavenomics upgrade.

Despite the 10-year U.S. Treasury yield reaching 5.234% and the 30-year yield approaching its highest level since 2004, driving the U.S. stock market down for the second consecutive trading day on Monday, the aforementioned increases still occurred.

Bitcoin BTC traded at $84,117.13, rebounding to $84,170 on Tuesday, up 0.82% from midnight of UTC, and rose 1.4% in the past 24 hours. Among the CoinDesk components, 72 rose, with the index increasing by 0.89% to 1,904.49.

In an environment where risk assets have been under pressure for the past week, buying interest continues to flow in: the yield on 10-year U.S. Treasury bonds closed above 5.2% on Monday and remained at 5.234%, near levels seen since 2007; the yield on 30-year bonds was reported at 5.549%, and on Monday it briefly surpassed 5.56%, approaching highs since 2004.

U.S. stock markets fell for the second consecutive trading day on Monday, with the Dow Jones Industrial Average dropping by more than 300 points, while the S&P 500 Index and the Nasdaq Composite Index fell by 0.8% and 0.9% respectively; on Tuesday morning, U.S. stock futures showed mixed movements.

Decentralized finance ( DeFi ) has once again become the main driving force behind market trends, for the second time this week. DeFi Select Index ( DFX ) has risen by 5.0% since midnight on UTC; among them, the lending protocol token Aave AAVE is trading at $149.48, up 11%; the Curve DAO token CRV is at $0.3457, up 5.2%. CoinDesk has risen by 2.0%, higher than CoinDesk which has increased by 1.3%; however, over the past 24 hours, CD5 has risen by 1.7%, outperforming CD80 which only rose by 0.44%.

Privacy coins are one of the few exceptions and also represent the sector with the largest decline. Zcash (ZEC) fell by 4.1%, to $1,422.35, a decrease of 8.4% in the past 24 hours; Dash (DASH) fell by 6.4%, to $61.38. The decline of Zcash has brought it to about 13% below its trading level from Friday.

Brent crude oil fell by 0.85% to $97.92, remaining below $100 after a sharp rise on Monday; gold rose by 0.68% to $4,140; the US dollar index increased by 0.18% to 101.36.

Derivative positions

Leverage continues to shrink: As of UTC 09:45, the open interest in futures contracts remained at $149.36 billion, with little change from the previous day's $150 billion. Trading volume increased by another 26% to $218 billion after a 70% surge yesterday; the clearing amount stayed flat at $389 million. Over the past 24 hours, the volume of long and short trades has become more balanced, with sellers having a slight advantage yesterday at 46.9% versus 53.1%.

Weakening of Bitcoin bearish influence: The number of open Bitcoin futures contracts decreased from 650,000 BTC yesterday to 644,000, hitting the lowest level since March 4th. However, after turning negative yesterday, the funding rate has returned above zero, and the 24-hour CVD adjusted by open contracts is now neutral. The bearish sentiment among the remaining positions has weakened.

Binance’s major traders have turned extremely bullish on BTC; the sentiment among major traders is more positive than yesterday. The long-to-short ratio of major traders’ positions is 1.88, for major trader accounts it is 1.31, and for retail traders it is 1.24. A ratio above 1 indicates that there are more long positions than short positions.

Counterfeit coin leverage continues to flow out: The open interest of ETH and SOL is still on a downward trend. XRP has given back some of its small gains from yesterday; yesterday, its open interest briefly rose to a four-week high of 2.46 billion XRP, before falling back to 2.37 billion.

LINK attracts new long positions: The token has risen by 14% in the past 24 hours, making it one of the best-performing assets. The number of open futures contracts has increased by 4%, reaching the highest level since August 22, indicating that new long investors have entered the market. LINK is also one of the few tokens with a positive performance over the past 24 hours, along with CVD, QNT, ETH, and TRX. The funding rate is around 2% annually, suggesting that there is demand for upward movement in the market, but it has not yet overheated.

ZEC Sellers still dominate: The token has fallen for the third consecutive day, and the number of open futures contracts has also decreased, indicating that long positions are being liquidated. Its 24-hour CVD performance is the most negative among mainstream cryptocurrencies, suggesting that selling pressure is quite aggressive.

Volatility remains low: The 30-day implied volatility indices for Bitcoin and Ethereum are still near their year lows, although a slight rebound yesterday pushed them to 37.4%. Traders still expect the market to remain calm.

Option traders shifting from put options to call options: The seven-day and one-month put/call skew has slightly turned negative, indicating that call options have regained their premium. This is different from yesterday, when the $84,000 put option was the most active contract. In the past 24 hours, trading volume has favored call options with strike prices of $85,000, $90,000, and $95,000. On Ethereum, the $3,000 call option expiring on October 9th has become the most active contract, replacing the $2,850 call option expiring on October 20th, which was the focus yesterday.

Token Dynamics

Aave AAVE is trading at $166.55, up 11% since midnight on UTC, and has risen 13% in the past 24 hours. It is the token with the largest increase among the CoinDesk's 20 constituent stocks. The rise is due to market speculation regarding Aavenomics 3.0, and the project founder Stani Kulechov indicated that the protocol may introduce a token burn mechanism in the upcoming upgrade.

Quant ( QNT ) has resumed its upward trend, rising by 17% to $269.58, with a 13% increase in the past 24 hours. Just three trading days have passed since it rose 39% last Friday and then lost 16% on Monday; now, the price is already higher than its starting point.

The token CRV is trading at $0.3457, up 5.2% since midnight on UTC, and has seen a 22% increase over the past 24 hours to reach $0.40, making it the asset with the largest percentage gain in this index. This indicates that the majority of this increase occurred during trading hours in the United States on Monday, rather than earlier today.

Internet Computer ( ICP ) rose by 8.3% to $3.39, with a 14% increase in the past 24 hours; Avalanche ( AVAX ) rose by 7.0% to $11.35, with an 8.4% increase in the past 24 hours. Both have regained the ground lost during Monday's selling pressure.

Hedera HBAR reported $0.1268, giving back some of its weekly gains and falling 3.2% to $0.12, but still rose 9.5% in the past 24 hours; Litecoin LTC reported $69.53, declining 0.51% to $68.86, with its trading enthusiasm halving and cooling down over the past 24 hours.

Real-time updates:Bitcoin rebounds above $84,000; ETF attracts $30 million in capital inflows; Blockchain.com plans to IPO this year, with a valuation of up to $6 billion; Bitcoin is on track to break an important record that has lasted for over a decade, with a surge in gains in September; Analysts believe the 10-year U.S. Treasury yield may rise to 6%, so Bitcoin bulls need not panic; Near Intents halted a $50 million capital flow in a Bitget hacker exchange; Anthropic plans to invest $518 billion in infrastructure, with perpetual contracts showing almost no reaction before listing; Bitcoin holds above $83,000; Oil prices rise again after a 12% decline; Goldman Sachs brings a $100 billion U.S. Treasury fund into crypto institution infrastructure; The rush to re-pledge has ended, with top protocols showing little profitability; Senate Democrats call Tether the "lifeline" of the Iranian regime and release a new report.

The Definitive Stablecoin Landscape Series : Asia Pacific

As stablecoins enter the regulated financial system, the Asia-Pacific region is becoming a key testing ground. This report outlines the regulations, use cases in the region, as well as the role of RLUSD.

Why it matters : As stablecoins enter the regulated financial system, the Asia-Pacific region is becoming a key testing ground. This report outlines the regulations, use cases in the region, as well as the role of RLUSD.

Live updates : Bitcoin rebounds above $84,000, ETF attracts $30 million in capital inflows; Bitcoin is on track to break an important record that has lasted for over a decade, with a surge in gains in September; Analysts believe the yield on 10-year U.S. Treasury bonds could rise to 6%, so Bitcoin bulls need not panic; Bitcoin rebounds above $84,000, ETF attracts $30 million in capital inflows; Blockchain.com plans to IPO this year, with a valuation of up to $6 billion; Bitcoin is on track to break an important record that has lasted for over a decade, with a surge in gains in September.