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Ethereum is back in the spotlight, and according to Arthur Hayes, co-founder of BitMEX and decentralized fund Maelstrom, this could be the start of a major revival for DeFi assets. As Ethereum continues its bullish trend, a select group of DeFi tokens is already showing signs of strong performance. With ETH’s market cap nearing $500 billion, investors are turning their attention to DeFi as the next potential growth sector.
In a post on X (formerly Twitter), Hayes confidently stated, “ETH szn is here,” referring to the seasonal rotation of capital into Ethereum and its associated ecosystems. He emphasized that if ETH continues to outperform, DeFi tokens are likely to follow suit.
Let’s explore how Ethereum’s rise is driving renewed interest in DeFi and which three tokens are leading the charge.
Ethereum’s Strong Market Presence
Ethereum has attracted significant capital in recent weeks, benefiting from broader optimism in the crypto market. It has consistently stayed above key support levels, with analysts pointing out that its technical and on-chain signals are aligning for further upside.
This renewed strength in ETH is critical. Many DeFi protocols are built on the Ethereum blockchain, meaning that ETH price action can directly influence DeFi token momentum. As Ethereum attracts investor attention and liquidity, DeFi becomes a natural extension of that interest.
Data from Artemis backs up this trend. The firm’s sector performance index, which measures changes in fully diluted market caps across sectors, showed Ethereum with 14.2% growth over the last week. DeFi followed closely behind with 10.6% growth, signaling that the market is already reacting.
DeFi Readies for Its Turn
While DeFi hasn’t yet overtaken Ethereum’s pace, the narrowing performance gap is important. Historically, during bull phases led by ETH, DeFi tokens tend to lag slightly before breaking out in their own right. That time may be approaching again.
CoinMarketCap data shows a current total DeFi market cap of $312.57 billion, with a recent gain of 2.32%. While this number may appear modest, a closer look reveals that individual DeFi tokens are starting to outperform the broader market.
To identify the most promising candidates, analysts have turned to the Altseason Index, which tracks altcoin performance over a 90-day period. Three standout DeFi tokens emerged from this analysis: Hyperliquid (HYPE), DeepBook Protocol (DEEP), and Aerodrome Finance (AERO).
Let’s take a deeper look at why these three are catching attention.
Hyperliquid (HYPE): Leading the Pack
HYPE has surged by a stunning 180% in the last three months, outperforming most assets in the DeFi space. Built for high-performance decentralized trading, Hyperliquid is gaining traction among users looking for efficient and scalable alternatives to traditional DEXs.
Technical charts suggest that HYPE may experience a short-term retracement, with support sitting near the $42.62 level. This Fibonacci-based pullback could present a buying opportunity before HYPE resumes its climb toward a new all-time high.
Investors are watching closely to see if it can bounce strongly off this level, which could signal that bullish momentum is still intact.
DeepBook Protocol (DEEP): Repeating History?
DeepBook Protocol, up 137% in the last 90 days, appears to be forming a familiar bullish fractal. Each time DEEP has broken to a new high, it has first retraced from Fibonacci resistance before continuing upward.
At the time of writing, DEEP is facing resistance near $0.205. If the pattern holds, a short-term dip may be followed by a surge toward the next target around $0.255. This would mirror past performance and could attract technical traders looking for repeatable setups.
DEEP’s growing reputation for reliable order book infrastructure on decentralized networks adds to its appeal.
Aerodrome Finance (AERO): Building Strength
Rounding out the trio is AERO, which has risen by 132% in the past quarter. Aerodrome Finance is positioned as a liquidity hub, aiming to improve yield generation and capital efficiency for users in DeFi.
AERO’s chart remains bullish, although a minor dip may be ahead. Analysts expect the token to retest its mid-band support before making another upward move. If accumulation continues at these lower levels, AERO may break out of its current consolidation channel.
Such a breakout would likely trigger increased volume and renewed investor interest, particularly among those seeking exposure to early-stage DeFi protocols.
Why DeFi Could Be the Next Sector to Watch
DeFi was a major driver of the 2020-2021 crypto bull cycle, with billions in value locked across protocols. However, it has taken a back seat in recent times due to regulatory concerns, lower yields, and attention shifting to newer narratives like artificial intelligence and real-world asset tokenization.
Now, with Ethereum strengthening and capital rotating back into familiar territories, DeFi looks ready for a second wind. Arthur Hayes’ bullish stance adds to the credibility of this thesis, given his history of accurately calling crypto market rotations.
If ETH maintains its upward momentum, DeFi tokens are well positioned to benefit. Not all projects will see the same level of growth, but those with strong fundamentals, real usage, and network effects—like HYPE, DEEP, and AERO—stand to gain the most.
Final Thoughts
Ethereum’s latest rally is more than just a price movement—it may signal the beginning of a broader shift in the market. With ETH acting as a foundation, DeFi is showing early signs of a comeback.
Investors and traders are paying attention to how ETH’s strength filters down to related sectors. If the momentum holds, DeFi tokens could become the next major opportunity for those seeking outsized returns in crypto.
While no investment is without risk, the growing alignment between Ethereum and DeFi activity is one of the clearest signals in the current market. Keep a close eye on the top-performing DeFi tokens—they may lead the next stage of the crypto bull cycle.
