January 2025 Crypto Market Analysis Report

In January 2025, the total market capitalization of the crypto market grew by 7.2%, reaching $2.8 trillion. Under the dual influence of new regulatory policies and breakthroughs in artificial intelligence technology, major blockchain platforms performed differently, with Bitcoin further consolidating its market dominance.

Market Overview

The price of Bitcoin rose from $94,577 to $102,180, an increase of 8.0%. In contrast, Ethereum performed poorly, with a price drop from $3,353 to $3,292, a decrease of 1.8%. The ETH/BTC ratio hit a nearly 5-month low.

Several important policies have had a significant impact on the crypto market. A new cryptocurrency regulatory executive order provides clear guidance for the industry, particularly emphasizing the protection of self-custody rights and supporting the development of stablecoins. However, remarks at the end of the month regarding international trade tariffs have raised concerns about global economic growth, leading to a cooling of market sentiment.

The launch of two new tokens on Solana has triggered a sharp fluctuation in the Memecoin sector, diverting attention and funds from the crypto market to other areas, including the blockchain gaming field.

Breakthroughs in the field of artificial intelligence have also impacted market dynamics, accelerating attention to decentralized AI infrastructure within the crypto ecosystem, leading to a rise in AI-related tokens this month.

Layer 1 Public Chain Analysis

The dominance of Bitcoin in the market has further increased to 71.3%, while the share of Ethereum continues to decline to 14.0%. Solana has once again surpassed BNB Chain with a market share of 4.0% (3.4%). Other public chains collectively hold a market share of 7.4%.

Solana continues to perform strongly, with a market capitalization increase of 22.0% to $112.3 billion, solidifying its position as the third largest blockchain by market cap. Among the top 20 chains by market cap, Stellar stands out with a significant increase in market capitalization. Litecoin and Monero rose by 23.5% and 21.6%, respectively. Cardano's market capitalization grew 11.9% to $33.2 billion.

Among emerging platforms, Sui maintains a stable market value in a competitive environment. TON, despite a 14.0% decline in market value, still holds its position in the top ten. Hedera has shown good growth, with a 14.2% increase in market value.

Traditional Layer 1 platforms such as Polkadot, Near, and Aptos are under pressure, with market capitalizations experiencing varying degrees of decline.

Bitcoin Layer 2 and Sidechains

In January 2025, the total locked value of Bitcoin Layer 2 and sidechains reached $2.6 billion, a 5.2% increase from the previous month.

Core maintains its market leadership with a TVL of $660 million, despite a 9.3% decrease from last month. Bitlayer shows strong growth, with a TVL increase of 15.2% to $430 million, while BSquared performs excellently with a TVL surge of 19.7% to $400 million.

Rootstock and BOB rank fourth and fifth with a TVL of $250 million and $240 million, respectively. AILayer's TVL grew by 13.2% to $230 million.

On medium-sized platforms, Merlin TVL experienced a mild decline, while Stacks maintained stable growth. Small platforms showed mixed performance, with BounceBit growing by 7.3%, while new entrants like SatoshiVM and Naka saw varying degrees of decline.

Ethereum Layer 2

In January 2025, the total locked value in the Ethereum Layer 2 ecosystem decreased to $18.3 billion, down 6.7% from the previous month. The performance of market leaders showed divergence.

Despite a significant drop of 20.4% from last month, Arbitrum maintains its leading position with a TVL of $6.8 billion. Base continues its strong momentum, with a TVL increase of 14.0% to $4.6 billion, solidifying its second position. Optimism remains in third place with a TVL of $3 billion, only slightly down by 0.5%.

Among the best-performing platforms, World Chain and Paradex excelled, with TVL increasing by 27.6% and 50.3%, respectively. ZK Rollups demonstrated resilience, with Starknet and zkSync Era growing by 7.4% and 12.2%, respectively.

Some mature platforms are facing challenges, with Blast and Fuel experiencing significant declines in TVL. Linea and Scroll also saw slight decreases.

The competitive dynamics of the ecosystem continue to evolve, with Optimistic Rollup and ZK Rollup demonstrating varying degrees of success. As new entrants join the ecosystem, mature platforms focus on consolidating their market position by enhancing functionality and user experience.