Avalanche Soars 10%, Hyperliquid Jumps 7% as Fed Decision Ignites Crypto Rally

Digital assets surge as Powell's pivot fuels risk-on frenzy

Market Momentum

Avalanche rockets double-digits while Hyperliquid captures DeFi momentum—traders pile into altcoins as traditional finance braces for another round of monetary whiplash. The Fed's latest move sends institutional money scrambling for yield wherever it can find it.

Crypto's Fed Playbook

Rate decisions now trigger instant algorithmic responses across decentralized exchanges. Liquidity floods perceived inflation hedges while legacy banks still process paperwork. The gap between TradFi execution and crypto velocity keeps widening—pro traders aren't waiting for Bloomberg terminals to catch up.

Wall Street's watching while crypto's building. Again.

In brief

• The rate cut decided by the Federal Reserve acts as a trigger on crypto markets, without being the sole driver of the rebound.
• Avalanche (AVAX) records a rise of more than 10% thanks to a one billion dollar strategic plan and a possible listing via ETF.
• Hyperliquid (HYPE) advances strongly, supported by the growth of its stablecoin USDH, favored by institutional investors.
• The current altcoin rally highlights a paradigm shift: project-specific dynamics take precedence over only macroeconomic announcements.

Avalanche, the announcement that changes everything

While attention was focused on the Federal Reserve and its 25 basis point rate cut, Avalanche (AVAX) surprised with a +10.1% rise in 24 hours, reaching $32.59.

This significant rise is not only due to a more favorable macroeconomic environment. It mainly results from strategic initiatives specific to the Avalanche ecosystem, which triggered strong interest from institutional players.

Here are the main elements that fueled this dynamic:

• The announced launch of a one billion dollar digital treasury plan: the Avalanche Foundation is reportedly in advanced talks with a Nasdaq-listed company, supported by Hivemind and a SPAC sponsored by Dragonfly, to finance this ambitious plan;

• The goal is massive buyback of AVAX tokens at a reduced price, a strategy that applies upward pressure on the token price while strengthening the foundation’s treasury position;

• The filing for an AVAX ETF by Bitwise, with Coinbase as asset custodian, a major step toward institutional adoption.

These announcements acted as a catalyst at an already favorable time for risky assets. Thus, as explained Min Jung, senior analyst at Presto, “AVAX’s outperformance seems driven by Avalanche’s announcement of a $1 billion Digital Asset Treasury plan”.

According to her, even if the market had anticipated the rate cut, this type of project-internal development could support the short-term rise.

Hyperliquid, the rise of an outsider

Following Avalanche, another project made a remarkable breakthrough: Hyperliquid. Up 7.2% in 24 hours, the HYPE token reached $58.43, supported by the rise of USDH, its native stablecoin.

The latter attracts the attention of many institutional investors, notably due to its unique infrastructure. Ganesh Mahidhar, investment professional at Further Ventures, details the reasons for this enthusiasm: “USDH is attracting liquidity across the board from many institutions, with perp trading built so that custody is not with the exchange but the UX is just as smooth as a centralized exchange“.

This hybrid model, combining the security of decentralized solutions with the ergonomics of centralized exchanges, seems to meet a specific expectation of institutional players. In a context where trust in custody platforms is regularly tested, this technical architecture represents a serious comparative advantage.

Although markets briefly reacted to the Fed’s rate cut, Mahidhar recalls that the effect could be short-lived, as the cut had been anticipated for months by the markets. Therefore, innovations like Hyperliquid’s could now guide flows.

In the medium term, the Hyperliquid case raises questions about the transformation of stablecoins from passive tools to competitive infrastructure products. While USDT and USDC dominance remains intact, the arrival of alternative models could redefine stablecoin usage in decentralized finance. By extension, this also opens the way to new valuations of tokens hitherto considered peripheral, as their technology finds concrete application in global financial flows.

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