CoinGecko’s Q1 2025 report reveals an 18.6% fall in the crypto market cap, totalling a loss of $633 billion. The report highlights significant downturns in investor activity and trading volumes, driven by macroeconomic factors and recession fears. Bitcoin’s dominance rose, but it also reported a considerable price drop. Ethereum and other altcoins faced significant losses, reflecting a failing market.
According to CoinGecko’s quarterly report, the overall cryptocurrency market cap experienced an 18.6% decline in Q1 2025, translating to a substantial loss of $633.5 billion. Additionally, the trading volume on centralized exchanges decreased by 16% compared to the previous quarter, indicating a cooling market atmosphere amid rising recession fears.
Despite some positive indicators, the Q1 2025 report highlights the negative trends dominating the cryptocurrency landscape. January began with bullish momentum; however, macroeconomic factors diminished market sentiment in February and March. Daily trading volumes across all cryptocurrencies dropped by 27.3% quarter-on-quarter, with a notable 16.3% decrease in spot trading volume attributed partially to security incidents such as the Bybit hack.
The report further illustrates how specific events influenced market dynamics. Following market euphoria surrounding former President Trump’s inauguration and the launch of the TRUMP meme coin, interest in Solana memes surged briefly, only to decline sharply thereafter. Compounding the issues, the LIBRA scandal contributed to overall market stagnation.
Bitcoin’s market dominance increased to 59.1% in Q1 2025, signifying its relative stability compared to other altcoins; yet it also faced an 11.8% price reduction. Worryingly, Bitcoin’s performance lagged behind traditional assets like gold and US Treasury bonds, particularly given the economic repercussions of Trump’s tariffs.
Ethereum experienced a significant loss, erasing all its gains from 2024 during Q1 2025, while liquidity in multichain DeFi dropped by 27.5%. Solana’s dominance in decentralized exchange transactions contrasted sharply with a substantial decline of over 20% in its total value locked (TVL). Additionally, Bitcoin ETFs recorded $1 billion in new inflows, but total assets under management (AUM) fell by nearly $9 billion due to declining prices. This data indicates a prevailing sense of recession fears within the crypto market.
