Ethereum breaks through $3,400, and the deadlock in the encryption bill drives the rebound of Meme and other sectors

According to the latest data from SoSoValue, although the legislation on crypto asset regulation has reached a deadlock in the U.S. Congress, market sentiment has risen against the trend, and the cryptocurrency sector as a whole has risen to varying degrees. Among them, Ethereum (ETH) performed particularly well, leading the mainstream currencies for the second consecutive day, with a 24-hour increase of 6.26%, rising to above $3,400, setting a new high in nearly half a year.

Bitcoin (BTC) slightly corrected after breaking through $120,000, with a 24-hour increase of 0.31%, currently at $118,000. Despite the slowdown, its price is still in the historical high range.

In terms of mainstream sectors, the technology giant concept crypto index MAG7.ssi rose 2.87%, the DeFi sector index DEFI.ssi rose 2.55%, and the most eye-catching was the MEME sector index (MEME.ssi), which rose 7.43% in 24 hours, reflecting the market's significantly enhanced risk appetite for highly volatile assets.

In the sub-sectors:

The Meme sector rose by 5.12% overall, with Bonk (BONK) and FLOKI performing particularly well, soaring by 21.09% and 31.86% respectively, becoming the focus of current market speculation.

The PayFi sector rose by 2.56%, of which XRP rose by 4.80%, continuing to benefit from good news related to cross-border payments.

The CeFi sector rose by 2.02%, and Binance Coin (BNB) rose by 4.25%, showing that centralized platform tokens also received attention from funds.

The Layer1 sector rose by 1.97%, and Solana (SOL) rose by 5.58%, continuing to occupy a place in the high-performance public chain track.

The DeFi sector rose relatively modestly, at 0.46%, with Ethena (ENA) up 4.13% and Curve DAO (CRV) rebounding strongly by 21.52%; however, Pump.fun (PUMP), which had previously surged, fell 13.95%, indicating that some short-term speculative assets were facing capital outflows.

The Layer2 sector saw a slight correction, down 0.52%, which may reflect the withdrawal of some arbitrage funds from overvalued projects.

The crypto sector index simultaneously reflects the structural differentiation of the market: the ssiMeme index rose 6.62% in 24 hours, the ssiLayer1 index rose 4.57%, and the ssiPayFi index rose 2.84%. These data show that despite policy uncertainty, the market remains highly enthusiastic about projects with application scenarios, user bases, and speculative space.

Although the progress of the US crypto bill has been hindered, it has brought regulatory ambiguity in the short term, but it has also delayed direct restrictions on the crypto industry, thus giving the market a "policy vacuum" game window.

Next, whether ETH can hold firmly above the $3,400 mark and whether BTC can hold above $120,000 will become the indicators of the next stage of the market.