Bitcoin Dominance Surges in Q1 2025 as Ethereum Slips; Stablecoins Gain
Bitcoin (BTC) and Ethereum (ETH) witnessed significant shifts in their market dominance during Q1 2025, with Bitcoin gaining and Ethereum losing ground. Meanwhile, stablecoins and certain undervalued coins attracted substantial investor interest.
Bitcoin started the year strongly, reaching an all-time high of $106,182 on January 22, before closing the quarter at $82,514 after an 11.8% decline. This surge helped Bitcoin's market dominance rise by 4.6 percentage points to 59.1%.
Ethereum, however, experienced a steep drop. It ended the quarter at $1,805, a 45.3% decrease from its Q4 2024 close, and its market dominance fell by 3.9 percentage points to 7.9%.
The crypto market peaked locally at $3.8 trillion in mid-January but began a downward trend that persisted throughout the quarter. The total market capitalization declined by 18.6% to $2.8 trillion.
Stablecoins, particularly Tether (USDT), gained traction during this downturn, increasing their market share to 5.2%.
Binance maintained its position as the leading spot exchange, with a 40.7% market share by the end of March 2025. The top 10 centralized exchanges (CEXs) recorded $5.4 trillion in spot trading volume, a 16.3% decline from the previous quarter.
Investor interest shifted towards undervalued coins and innovative Layer-2 solutions. Ripple (XRP) and Cardano (ADA) also attracted significant attention due to strategic partnerships and growth potential.
Q1 2025 saw Bitcoin strengthen its market dominance while Ethereum lost ground. Despite a decline in total market capitalization, stablecoins gained traction, and undervalued coins attracted investor interest. Binance retained its leading position among spot exchanges.
