Crypto market loses $ 633.5 billion in the first quarter of 2025, while the Trump rally loses swing

Crypto market loses $ 633.5 billion in the first quarter of 2025, while the Trump rally loses swing

• The market share of Bitcoin rose to 59.1% despite a decline of 11.8%.
• Ethereum's winnings in 2024 were destroyed in Q1 2025.
• The Total Value Locked (TVL) in Defi fell 27.5% over multiChain platforms.

The global cryptocurrency market started optimistically into 2025, driven by the expectations of favorable political changes under the presidency of Donald Trump and a strong rally at Meme coins.

But these hopes have now been destroyed. according to the latest quarter The entire market capitalization of crypto in Q1 2025 fell by Coingecko by 18.6% and $ 633.5 billion was lost.

The trade volumes also suffered a setback. The report shows that the average daily trade volume dropped by 27.3% compared to the previous quarter. The spot trade on centralized stock exchanges fell by 16.3%, a decline that was partially attributed to the Hack of Bybit at the beginning of the year.

Despite signs of strength in early January, fear of recession and fragmented investor interest on a broad sales pressure on digital assets.

Bitcoin exceeds altcoins, but still falls by 11.8%

Bitcoin in Q1 kept its dominance over the wider market and made up 59.1% of the total market capitalization of crypto-that is the highest level since 2021.

This change emphasizes, as investors Bitcoin viewed as a relatively stable asset compared to old coins during uncertain times.

However, Bitcoin himself was not immune to losses. It fell by 11.8% in the quarter and cut off worse than traditional security systems such as gold and US state bonds.

also found that the newly introduced tariffs of Trump triggered volatility on the bond market and influenced the returns-an important key figure that is closely connected to the rivers of digital assets.

Ethereum experienced an even stronger reversal. There were all profits from 2024 and returned to levels that were last seen before the Shanghai upgrade. The report attributed this trend to declining activities in the Defi area and persistent concerns about gas fees and scalability.

Defi tvl and solana activity fall strongly

MultiChain-Defi protocols suffered significantly, since the Total Value Locked (TVL) fell by 27.5% over the three-month period.

Solana, which cited the area of ​​decentralized trade (Dex) during the meme token craze in January, recorded a decrease in its own TVL by more than 20%.

The data from Coingecko show that the market development around Trump-Them token, in particular the Trump token on Solana, triggered a temporary increase in transaction volumes. However, this activity could not arouse any persistent interest of investors beyond January.

The Libra scandal, which came up shortly afterwards, added the old coin feelings and liquidity.

Despite these setbacks Bitcoin Exchange-Traded Funds (ETFS) in Q1 fresh inflows of $ 1 billion.

However, due to falling prices, the entirety of the managed assets (AUM) fell by almost $ 9 billion, which illustrates the gap between investment inflows and market returns.

Structural concerns deepen

While some data points showed limited resilience, almost every positive trend in the report was associated with a downward risk.

The report shows that centralized stock exchanges, stable coin volumes and defi applications in February and March decreased in terms of activity. Many projects lost on the road when the macroeconomic concerns increased and the caution of the investors grew.

Coingecko found that the first quarter of 2025 is one of the most challenging phases for crypto since the collapse of FTX at the end of 2022.

The report reflects broader market concerns that the crypto sector, despite structural improvements in infrastructure and compliance, remains very susceptible to global economic shocks.

Since the fears of a recession increase and regulatory uncertainties remain in large markets, the path for crypto will remain highly insecure in the coming months.

Although the increasing market share of Bitcoin indicates an escape into supposed security, the broader market needs more than just optimism and meme token rally to recover from the losses of this quarter.

The contribution "Kryptomarkt loses $ 633.5 billion in Q1 2025, while the Trump rally loses drive" first appeared on Coinjournal.