Bitcoin (BTC) and Ethereum (ETH) prices both increased by 5% in the last day, giving investors renewed confidence for a long-awaited market recovery following a severe sell-off in May.

According to data provided by CoinMarketCap, Bitcoin is currently trading at $31,289, up 5.2 percent on the day.

The top cryptocurrency last traded at these levels on June 1, when it began a downward correction that saw BTC fall from around $32,000 to below $30,000 for the majority of the weekend.

Despite the recent increase, Bitcoin is still down more than 34% since the beginning of the year, with the Fear & Greed Index—a set of variables that measures market sentiment—currently at 13, indicating "severe fear." 

Ethereum follows the same path as Bitcoin.

According to CoinMarketCap, the price of Ethereum has just reached an intraday high of $1,889, an increase of about 6%.

The second-largest cryptocurrency is still fighting to recoup from its losses since the beginning of the year, when it was trading above $3,800.

The dismal performance of Ethereum is exacerbated by a major sell-off in the DeFi space. According to data from DeFi Llama, investors withdrew more over $40 billion from ETH-based apps in the last month, reducing the total value locked (TVL) from over $113 billion on May 5 to $71.04 billion today.

Cardano (ADA) and Solana (SOL), two significant tier 1-networks, both gained double digits in the last 24 hours, with their tokens rising 13 percent and 11.4 percent, respectively.