Key Notes

The Decline of DeFi and Bitcoin

DeFi Total Value Locked (TVL) has fallen to $128.6 billion, a significant drop from the Q4 2024 figure of $177.4 billion.

• Bitcoin’s dominance level increased to 59.1%
• Altcoins performed poorly compared to Bitcoin

While DeFi TVL fell to $128.6 billion in Q1 2025, it is not clear what factors contributed to this decline. However, it is evident that the total crypto market cap also fell by 18.6% and lost $633.5 billion.

Bitcoin’s Performance

Although Bitcoin performed poorly in Q1 2025 behind traditional assets such as US Treasury bills and gold, it continued gaining ground in overall crypto dominance. Bitcoin’s dominance level rose to 59.1% by the end of last quarter.

Although Bitcoin performed poorly, it was a notable improvement from its Q4 2024 dominance level of 56.2%.

Ethereum TVL’s Performance

The 27.5% decrease in the TVL has been linked to the performance of altcoins. Ethereum’s TVL reduced from $112.6 billion in Q4 2024 to $72.7 billion in the last quarter.

• Ethereum’s TVL decreased by 35.4%
• Ethereum’s TVL is now the second largest TVL holder

This makes the Ethereum ecosystem shed 35.4% of its TVL.

Altcoins Performance

Other altcoins such as Base and Solana experienced a decline in DeFi TVL. Base’s decline was 15.3% and Solana’s decline was 23.5%.

• BeraChain rose in DeFi TVL to $5.2 billion
• BeraChain solidified its position as the sixth largest TVL holder

On the other hand, BeraChain grew in DeFi TVL to $5.2 billion, solidifying its position as the sixth largest TVL holder.

Meme Coins Nosedive

The launch of TRUMP and MELANIA meme coins led to an increase in the release of tokens on Pump.fun. However, the coin linked to Javier Milei, the President of Argentina, was rug-pulled by developers soon after its launch.

• The drop in the number of tokens released on Pump.fun at the end of the first quarter
• The volatility within the DeFi and meme coin sectors

These shifts highlight the volatility within the DeFi and meme coin sectors, underscoring the market’s sensitivity to both political developments and investor sentiment.

Market Outlook

As Q2 begins, all eyes will be on whether DeFi can regain momentum or continue its downward slide.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.