Bitcoin forms strong base at $110,000; Ether, Solana and Dogecoin also rally – DeFi lending gives new life to the market
The global crypto market is once again seen gaining momentum in the first trading week of September. Bitcoin (BTC), the world’s largest digital asset, is still trading strongly above $110,000, while altcoins like Ethereum, Solana, Dogecoin and XRP also recorded solid gains.
Bitcoin holds firm at $110K
Bitcoin price rose 0.52% to $111,259 in Monday’s session. This is a sign that liquidity and buyer confidence is returning to the market. BTC touched its all-time high of $124,457.12 on August 14. There was a correction after that, but now the price seems to be forming a new stable zone.
September is historically considered a weak month for crypto. But this time the market activity shows that the bulls are still ready to maintain the momentum. Experts say that if BTC breaks out above the current resistance, then a big rally can start which will push the broader crypto market further.
Avinash Shekhar, Co-Founder & CEO, Pi42, said – “Bitcoin is currently stabilizing near the resistance zone. If there is a breakout, it will be a massive trigger. Also, BTC’s illiquid supply is at a record high of 14.3 million, which highlights the accumulation of long-term holders.”
Dazzling performance of Altcoins
While Bitcoin strengthened its base, altcoins took full advantage of the rally. Ethereum (ETH) traded at $4,295 with a slight gain of 0.05%. XRP jumped 2.37%, Solana (SOL) went up 2.2% and Dogecoin (DOGE) surprised everyone with a sharp rally of 6.8%.
According to Shekhar, “Dogecoin is currently leading the altcoin rally, while Solana and XRP are attracting the interest of traders due to adoption-driven narratives. XRP’s remittance use case and Solana’s ETF speculation have further boosted their demand.”
Supporting this momentum is also a macro factor — expectations of a rate cut by the US Federal Reserve. Analysts believe that if the Fed policy is soft, then risk assets including crypto will get a solid tailwind.
DeFi lending gave a boost to the market
The optimism of the crypto market has been further intensified by the Decentralized Finance (DeFi) sector. In 2025, the value of DeFi lending has already surged 72% year-to-date, and has now crossed $127 billion TVL (Total Value Locked).
Himanshu Maradiya, Founder & Chairman, CIFDAQ, said – “This boom in DeFi lending is largely due to institutional demand for stablecoins and tokenized real-world assets. This is a clear sign that DeFi is now becoming a bridge for traditional finance, providing access to blockchain-native yield opportunities.”
But he also highlighted the risk factors. They cautioned that aggressive yield-chasing strategies in Ethereum treasuries could lead to leverage-driven distortions, which could create risks for a maturing market.
Positive signals from the regulatory front
Another big news for the market came from the regulatory front. The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement signaling that regulated exchanges could now support spot crypto products. This is a very important development that opens up a path to integrate digital assets into mainstream markets.
This regulatory clarity is creating a positive environment for investors, especially for those institutions that till now considered crypto investments as high-risk.
What does the market sentiment say?
If we look at the overall picture, the current sentiment is cautiously optimistic. On one hand, Bitcoin accumulation shows long-term confidence, while on the other hand, altcoin leadership and DeFi lending surge are becoming an attraction point for new investors.
Yes, seasonal weakness and regulatory uncertainties still exist, but in the short-term, crypto markets seem to be moving towards a new bullish phase.
👉 Bottom line is that Bitcoin holding above $110,000 is a strong psychological signal for the market. If this level is sustained and the resistance is broken, then the last quarter of 2025 could prove to be very rewarding for crypto investors.