The cryptocurrency market witnessed a sharp downturn in Q1 2025, with total market capitalisation plummeting by 18.6%, resulting in a loss of $633.5 billion.
CoinGecko’s quarterly report said the significant drop reflects growing investor concerns amid persistent recession fears and global economic uncertainties.
Daily trading volumes also took a substantial hit, decreasing by 27.3% quarter-on-quarter (QoQ) to an average of $146.0 billion.
Trading volumes stood at $200.7 billion in Q4 2024.
This decline extends to centralised exchanges as well, which recorded a 16% drop in trading volume compared to the previous quarter. The report cites recession worries, coupled with the aftermath of the Bybit hack, as key contributors to this trend.
