Q1 2026, the crypto market delivered a bleak performance.

The latest report from CoinGecko shows that, influenced by the continued bearish momentum at the end of 2025 and geopolitical turmoil, the total crypto market capitalization in Q1 fell by 20.4%, evaporating $622 billion, ending the quarter at $2.4 trillion, roughly 45% below the peak in October 2025.
Average daily trading volume shrank by 27.2% to $117.8 billion.
Asset performance varied significantly.
Crude oil surged 76.9% due to supply shocks from the US-Iran war, becoming the strongest asset in Q1;
Bitcoin declined 22.0%, underperforming the Nasdaq (-7.1%) and the S&P 500 (-4.8%).
Exchanges also faced pressure.
The top ten CEX spot trading volume plummeted 39.1% quarter-over-quarter to $2.7 trillion, with only $0.8 trillion recorded in March alone, hitting a new low since November 2023.
On the DEX side, Solana maintained the first place with a 30.6% quarterly share, but was overtaken by Ethereum in March;
Monad recently entered the top ten.
The biggest highlight lies in the derivatives sector.
Hyperliquid, with the HIP-3 upgrade, introduced commodity perpetual contracts, which now account for about 30% of the platform’s total holdings.
On April 9, tradeXYZ’s two types of crude oil perpetual contracts traded over $4 billion in a single day, surpassing Bitcoin’s daily trading volume on Hyperliquid for the first time.
The crypto market is shrinking, but commodity derivatives driven by war are finding new growth opportunities on-chain.
Structural opportunities in a bear market often hide in the most unexpected places.