Ethereum Breaks $3,770 as Capital Rotates Into Altcoins; Solana, DeFi Tokens Gain Momentum
Ethereum (ETH) rallied above $3,770 on Monday as investors rotated out of bitcoin (BTC) and into altcoins and decentralized finance (DeFi) names, signaling renewed appetite for risk across the crypto market.
Bitcoin hovered just above $117,400, trading mostly flat, while ETH posted fresh gains—fuelled by rising ETF inflows and growing institutional demand. The move coincided with increased trading volumes and bullish momentum across the broader altcoin complex.
Solana (SOL) surged over 8% to $203, marking its highest price since March. The rally followed the announcement of the Block Assembly Marketplace (BAM) by Jito Labs, a new system designed to enhance Solana’s block-building efficiency and transaction sequencing.
“The launch of BAM adds another layer of institutional-grade infrastructure to Solana,” said Nick Ruck, director at LVRG Research. “This is helping drive renewed investor interest.”
Meanwhile, DeFi tokens such as Uniswap (UNI), Aave (AAVE), and Compound (COMP) have jumped between 20%–30% over the past week, as momentum shifts toward protocols with strong fundamentals and potential regulatory clarity. U.S. lawmakers are advancing several crypto bills—like the GENIUS and CLARITY Acts—which could provide a more defined framework for DeFi operations.
“We’re seeing clear signs of capital rotation from bitcoin to Ethereum and high-conviction altcoins,” said Jeff Mei, COO at BTSE. “ETH ETFs are gaining traction, and the setup favors continued outperformance.”
Analysts also highlight improving macro conditions, such as stable interest rates and increased risk-on sentiment, as key drivers behind the rally.
“Crypto is entering the reflation narrative again,” noted Augustine Fan of SignalPlus. “ETH and SOL are emerging as top beneficiaries of this broader trend.”
Despite some profit-taking in tokens like XRP, DOGE, and ADA, market sentiment remains firmly bullish. Ethereum’s next major target is its all-time high of $4,870, while SOL continues to outperform with institutional inflows and network upgrades supporting its rise.
