The cryptocurrency market experienced a decline in early 2025 after reaching its highs in late 2024. By the end of the first quarter, the total market cap dropped by over 18% to $2.8 trillion, compared to the $3.8 trillion it reached in January.
Despite the market slump, Bitcoin’s dominance increased to 59.1%, its highest level since 2021.
Ethereum struggled in the first quarter, dropping by 45%. Its market dominance fell to just 7.9%, the lowest it has been since late 2019. This indicates its poor performance compared to the broader market downturn.
In Q1 2025, Ethereum’s value plummeted to $1,805, wiping out all the gains it made in 2024. This decline was much larger than other cryptocurrencies like Bitcoin, Solana, XRP, and Binance Coin, which only experienced minimal decreases. Additionally, Ethereum’s trading volume dropped from $30 billion in Q4 2024 to $24.4 billion in the latest quarter.
Furthermore, recent data from lookonchain revealed that a wallet associated with the Ethereum Foundation deposited 1,000 ETH worth $1.58 million to Kraken, which could further contribute to the drop in price. The Ethereum Foundation faced criticism in 2024 for selling 4,466 ETH worth $12.61 million during bearish market conditions. These sales have historically been followed by significant price drops, adding more pressure to Ethereum’s declining value.
Veteran trader Peter Brandt recently warned that Ethereum could crash to $800, revisiting its lows from 2022. Currently, ETH is trading at $1,757, down over 2% today and more than 60% below its peak value of $4,878 in 2021.
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