The yr 2025 opened with a impolite awakening for the crypto world. After the euphoria that characterised the tip of 2024, the primary quarter of the yr marked a transparent pattern reversal, with a major contraction of the market.
In keeping with the Crypto Trade Report by CoinGecko, up to date in April 2025, the general crypto market capitalization has decreased by -18.6%.
Thus closing the quarter at 2.8 trillion {dollars}, after having reached a peak of 3.8 trillion on January 18, a couple of days earlier than the inauguration of President Donald Trump.
The crypto market loses momentum in 2025
The primary quarter of 2025 noticed a contraction of over 633 billion {dollars} within the whole market capitalization. The annual excessive was reached in mid-January, however from that second on the pattern reversed, with a relentless decline till the tip of March.
The common day by day buying and selling volumes additionally skilled a major setback, lowering by -27.3% in comparison with the earlier quarter, dropping from 200.7 billion to 146 billion {dollars}.
This knowledge highlights a decline in curiosity and exercise from traders. In a bear market context, Bitcoin (BTC) has consolidated its place, rising its dominance to 59.1%, a degree not seen for the reason that first quarter of 2021.
This enhance of 4.6 proportion factors has occurred on the expense of altcoins, which have suffered extra marked losses.
The stablecoin have additionally benefited from traders’ seek for stability. Tether (USDT) has barely elevated its share to 5.2%, whereas USDC has regained the seventh place available in the market rating, surpassing Dogecoin (DOGE).
On January 22, 2025, two days after Trump’s inauguration, Bitcoin reached a brand new all-time excessive of 106,182 {dollars}, earlier than beginning a decline that led it to shut the quarter at 82,514 {dollars}, with a lack of -11.8%.
Regardless of the decline, BTC nonetheless carried out higher in comparison with different dangerous property just like the NASDAQ (-10.3%) and the S&P 500 (-4.4%). The true winner of the quarter was gold, which gained +18%, confirming itself as a secure haven in occasions of uncertainty.
Ethereum collapses and loses floor
The primary quarter was significantly troublesome for Ethereum (ETH). Its worth fell from 3,336 to 1,805 {dollars}, recording a drop of -45.3%. This erased all of the positive factors made in 2024, bringing ETH again to the degrees of 2023.
Day by day buying and selling volumes have additionally decreased, dropping from 30 billion to 24.4 billion {dollars}. The times with excessive volumes coincided with robust worth declines, indicating vital promoting strain.
The start of the yr noticed an explosion of curiosity in meme coin, due to the launch of the TRUMP and MELANIA tokens, which sparked a brand new pattern: that of political memecoin.
Nevertheless, the passion shortly pale after the launch of LIBRA, a coin promoted by the Argentine president Javier Milei.
After a tweet from Milei, the worth of LIBRA plummeted from 4.6 billion to 221 million {dollars} in a couple of hours, as a consequence of a rug pull by the builders.
This occasion has undermined confidence within the sector, inflicting the variety of day by day tokens launched on Pump.enjoyable to plummet by -56.3%, from 72,000 to 31,000.
Within the first quarter of 2025, the 10 principali alternate centralizzati (CEX) recorded a complete quantity of 5.4 trillion {dollars}, down by -16.3% in comparison with the earlier quarter.
Binance maintained its management with a market share of 40.7%, however noticed its month-to-month volumes drop from over 1 trillion to 588.7 billion {dollars}. The one alternate to register development was HTX, with a rise of +11.4%.
The worst drop was that of Upbit, which misplaced -34%, whereas Bybit suffered a collapse of -52.4% as a consequence of a hacker assault in February.
Solana dominates decentralized exchanges
Within the phase of decentralized exchanges (DEX), Solana continued to dominate, reaching a share of 39.6% within the first quarter.
In January, throughout the peak of the political memecoins, it reached 52% of on-chain trades, with a report quantity of 184.8 billion {dollars}.
Nevertheless, with the decline in curiosity for meme cash, Ethereum regained the highest spot in March, with a share of 30.1%, in comparison with Solana’s 23.4%.
Two newcomers, Sonic and Berachain, have made their entrance into the highest 10, ousting Optimism and Polygon.
The overall worth locked (TVL) in multichain DeFi has decreased by -27.5%, dropping from 177.4 to 128.6 billion {dollars}. The decline was primarily attributable to the devaluation of altcoins.
Ethereum has misplaced 35.4% of its TVL, dropping from 112.6 to 72.7 billion, and seeing its dominance lower from 63.5% to 56.6%.
Solana and Base additionally recorded vital declines, of -23.5% and -15.3% respectively.
Towards the pattern, Berachain, launched on February 6, shortly reached a TVL of 5.2 billion, turning into the sixth DeFi community by locked worth.
The success was pushed by the Boyco pre-deposit vaults, which attracted about 2.3 billion {dollars} in liquidity from the very first day.
The primary quarter of 2025 marked a part of stabilization for the crypto sector, with Bitcoin exhibiting relative resilience, whereas Ethereum and the altcoin suffered heavy losses.
Investor confidence has been examined, however the market stays dynamic, with new gamers like Berachain able to redefine the steadiness.
It is going to be fascinating to watch how the panorama will evolve within the coming months, in a world context that’s nonetheless unsure however filled with alternatives.