Bitcoin Dominates Crypto Market Amid Ethereum and Altcoin Struggles in Q1 2025

In Q1 2025, Bitcoin’s dominance rose to 59.1% while Ethereum plummeted by 45.3%, erasing 2024 gains. The total crypto market lost $633.5 billion, reflecting an 18.6% drop in market cap. The decline in Ethereum’s pricing and the rise of stablecoins characterised the turbulent period, which also saw major impacts in the meme coin and DeFi sectors.

In Q1 2025, Bitcoin achieved a dominance of 59.1%, indicating a notable market shift amidst a decline in the overall cryptocurrency landscape. Ethereum faced a dramatic 45.3% decrease, erasing its entire 2024 gains amid ongoing market turmoil. This contributed to a total market capitalisation decrease of 18.6%, dropping from $3.8 trillion in mid-January to $2.8 trillion by the end of March. The average daily trading volume also fell by 27.3% to $146 billion, contrasting sharply with the favourable market conditions observed towards the end of 2024.

Despite the overall decline, Bitcoin (BTC) fortified its market share, rising to its highest dominance since early 2021. Following an all-time high of $106,182 in January, Bitcoin retraced by 11.8%, concluding Q1 at $82,514. In contrast to Bitcoin’s performance, Ethereum (ETH) experienced a steep decline, which reflected on its market dominance, dropping to a mere 7.9%—its weakest position since late 2019. As activity on the Ethereum mainnet waned, this downturn paralleled a broader trend towards Layer 2 solutions.

The crypto market showcased new tendencies, particularly with Ethereum’s performance signalling significant shifts. As Ethereum dwindled, stablecoins like Tether (USDT) and USD Coin (USDC) gained favour among investors seeking stability amid the chaotic market conditions. This shift was seen as a move towards more stable assets as market sentiments soured.

The meme coin sector, once inflated by political influences, also blistered under the pressure of a stark decline. Following a crash of the Libra token—launched by Argentinian President Javier Milei—investor confidence fell drastically, resulting in over a 56% dip in daily token deployments on pump.fun. This lack of confidence was exacerbated by poor performance and the impact of failed projects in the meme coin arena.

Additionally, the decentralized finance (DeFi) sector saw its Total Value Locked (TVL) decrease by 27.5%, culminating at $48.9 billion by Q1’s end. Ethereum’s dominance over the DeFi market also reduced to 56.6%. Despite these downturns, Solana emerged as a leader in decentralized exchange (DEX) trading, capturing 39.6% market share in Q1 largely attributed to the declining meme coin popularity.