Q1 2025 Crypto Assets Market Review: Fluctuation and Transformation

At the beginning of 2025, the Crypto Assets market experienced a significant adjustment, in stark contrast to the bull market at the end of 2024. In the first quarter, the total market capitalization of Crypto Assets fell by 18.6% to $2.8 trillion, after briefly touching a high of $3.8 trillion on January 18. Market activity also declined, with the average daily trading volume dropping sharply by 27.3% to $146 billion.

In the context of an overall market downturn, Bitcoin's dominance has further solidified, reaching 59.1% by the end of the first quarter, marking a new high since early 2021. This is mainly due to altcoins suffering a more severe blow during this round of decline. Although Bitcoin hit an all-time high of $106,182 in January, it had fallen back to $82,514 by the end of the quarter, a decline of 11.8%.

Market Overview

1. The total market value of Crypto Assets at the end of the first quarter was $2.8 trillion, down 18.6% from the peak.
2. Bitcoin's dominance has increased to 59.1%, the highest level in nearly four years.
3. The price of Bitcoin has fallen by 11.8% over the quarter, underperforming gold and U.S. Treasuries.
4. The price of Ethereum has dropped significantly by 45.3%, from $3,336 at the beginning of the season to $1,805.

DeFi and Exchange Performance

1. The total locked value of multi-chain DeFi is ( TVL ) evaporated by 4.89 billion USD, a decrease of 27.5%.
2. The Ethereum DeFi ecosystem has been significantly impacted, with its TVL dominance dropping from 63.5% to 56.6%.
3. Centralized Exchange ( CEX ) spot trading volume reached 5.4 trillion USD, a month-on-month decrease of 16.3%.
4. Solana maintains a leading position in the decentralized exchange (DEX) trading, with a market share of 39.6% in the first quarter.

Emerging Trends and Events

1. The "Political Meme coin" craze quickly declined after its rise, leading to a significant adjustment in the Meme coin market.
2. A cryptocurrency project promoted by the president of a certain country has encountered major setbacks, raising market vigilance against Meme coins.
3. The emerging public chain Berachain has risen rapidly, with DeFi locked assets reaching 5.2 billion USD by the end of the quarter, ranking in the top six.

Despite significant adjustments in the market, the Crypto Assets ecosystem continues to evolve. The emergence of new projects, the optimization of existing platforms, and changes in the regulatory environment will continue to shape this dynamic industry. Investors and participants need to stay vigilant and pay attention to market trends, while also maintaining confidence in long-term development.