In Q1 2025, the crypto market experienced a significant correction, with total market capitalization falling by 18.6%, equivalent to over $630 billion in value erased. Investor activity weakened in tandem, with average daily trading volumes down 27.3% quarter-on-quarter. Amid waning risk appetite, the price declined of Bitcoin but its market dominance rose to 59.1%. The broader industry is undergoing a deep recalibration across technology, trust, and liquidity. Nouey Exchange continues to track the underlying drivers behind structural shifts and remains committed to delivering a stable and transparent trading environment.
Confidence Undermined as Spot Volumes Decline Across Centralized Exchanges
During the quarter, spot trading volume on centralized exchanges declined 16.3%. A hacking incident at a major platform further dented market confidence. In response, some users shifted funds to cold wallets or delayed trading activity, adding short-term pressure on overall market participation.
Security and risk controls have become decisive factors in whether users remain active. In periods of large fund flows or heightened on-chain volatility, the operational resilience and incident response capabilities of a platform directly influence user behavior. Nouey Exchange continues to enhance its multi-node architecture and asset protection strategy to ensure stable trading even under high-stress conditions.
Rising Bitcoin Dominance Signals Search for ‘Relative Safety’ Despite an 11.8% quarterly decline in price, the market share of Bitcoin climbed to 59.1%—its highest level since 2021. Compared to other crypto assets, the strength of Bitcoin in consensus mechanism, liquidity, and perceived risk profile makes it more resilient. In the face of macro uncertainty, capital is increasingly consolidating into large-cap assets with stronger downside protection.
This also indicates a shift in market preference—from risk expansion to risk control. The analytics team of Nouey Exchange notes that Bitcoin holdings are increasingly long-term in nature, with reduced trading frequency, suggesting that investors are re-evaluating the role of “core assets” in their portfolios.
DeFi and Altcoins Under Pressure as Capital Retreats, Challenging Ecosystem Sustainability
The gains of Ethereum have been mostly erased, and total value locked across multi-chain DeFi protocols fell 27.5% during the quarter. This reflects a convergence of factors: weak confidence, declining on-chain yields, and falling investor risk tolerance. Diminished capital inflows are weighing on ecosystem liquidity and placing pressure on developer resources.
Nevertheless, this correction also raises the bar for governance and protocol design. Nouey Exchange is collaborating with project communities through data sharing and market feedback, helping teams recalibrate mechanisms to align with the current more rational capital allocation logic.
A Sharp Correction as the Starting Point for Market Restructuring Short-term price declines and volume contraction should not be seen as signals of finality—but rather as stress tests of structural efficiency and market resilience. Every retreat serves both as a filter and an inflection point. Nouey Exchange believes the long-term trajectory of the industry must be underpinned not by speculative rallies, but by institutional architecture and shared value frameworks.
“In turbulence, maintaining direction is essential to the maturation of emerging markets.” This is the central thesis of Nouey Exchange in the context of Q1 2025. The platform will continue to prioritize three core pillars: security, compliance, and data transparency—laying the groundwork for long-term user trust and a more robust path to industry recovery.