January 2025 Crypto Market Analysis Report

In January 2025, the total market capitalization of the crypto market grew by 7.2%, reaching $2.8 trillion. Under the dual influence of new regulatory policies and breakthroughs in artificial intelligence technology, major blockchain platforms performed differently, with Bitcoin further consolidating its market dominance, increasing its share to 71.3%.

Market Overview

The price of Bitcoin rose from $94,577 to $102,180, an increase of 8.0%. In contrast, Ethereum performed poorly, falling from $3,353 to $3,292, a decrease of 1.8%, with the ETH/BTC ratio hitting a near four-month low.

This month, several important policy developments have had a significant impact on the crypto market. The newly released cryptocurrency regulatory directives provide clear guidance for the industry, particularly emphasizing the protection of self-custody rights and supporting the development of stablecoins. However, comments at the end of the month regarding international trade tariffs have raised concerns about global economic growth, leading to a cooling of market sentiment.

On the other hand, the launch of new tokens on Solana has triggered significant fluctuations in the Memecoin sector, and this wave of speculation has diverted market attention and funds from other crypto sectors, including the blockchain gaming field.

Breakthrough advancements in the field of artificial intelligence have also influenced market dynamics. This progress has accelerated the focus on decentralized AI infrastructure within the crypto ecosystem, leading to a rise in AI-related tokens this month.

Layer 1 Public Chain Analysis

In January 2025, the total market value of blockchain rose by 7.2% to $2.8 trillion. Bitcoin's market dominance further increased to 71.3%, while Ethereum's share decreased to 14.0%. Solana surpassed BNB Chain with a market share of 4.0% (3.4%), and other public chains collectively accounted for 7.4% of the market share.

Solana continues to perform strongly, with a market capitalization increase of 22.0% to $112.3 billion, solidifying its position as the third-largest blockchain by market capitalization. Among the top 20 chains by market capitalization, Stellar stands out with significant growth. Litecoin and Monero rose by 23.5% and 21.6%, respectively, while Cardano's market capitalization increased by 11.9% to $33.2 billion.

Among emerging platforms, Sui maintains a stable market value in an increasingly competitive environment. Although TON's market value has dropped by 14.0%, it still holds a position in the top ten. Hedera shows good growth, with a market value increase of 14.2%.

Traditional Layer 1 platforms such as Polkadot, Near, and Aptos are under pressure, with market capitalizations experiencing varying degrees of decline.

Development of Bitcoin Layer 2 and Sidechains

In January 2025, Bitcoin Layer 2 and sidechains maintained a growth trend, with a total locked value reaching $2.6 billion, an increase of 5.2% compared to the previous month.

Core maintains market leadership with a TVL of $660 million, despite a 9.3% drop from last month. Bitlayer shows strong growth, with TVL up 15.2% to $430 million, while BSquared performs excellently, with a TVL surge of 19.7% to $400 million.

Rootstock and BOB ranked fourth and fifth with a TVL of $250 million and $240 million, respectively. Notably, the TVL for AI-related layers grew by 13.2% to $230 million.

On medium-sized platforms, Merlin's TVL has seen a moderate decline, while Stacks maintains steady growth. The performance of small platforms varies; BounceBit has grown by 7.3%, while some new entrants have experienced a decline.

Ethereum Layer 2 Ecosystem

In January 2025, the Ethereum Layer 2 ecosystem underwent significant changes, with the total locked value dropping to $18.3 billion, a decrease of 6.7% compared to the previous month. The performance of market leaders varied.

Despite a significant drop of 20.4% from last month, Arbitrum maintains its leadership position with a TVL of $6.8 billion. Base continues its strong momentum, with a TVL increase of 14.0% to $4.6 billion, solidifying its second place. Optimism remains in third place with a TVL of $3 billion, experiencing only a slight decrease of 0.5%.

Among the best-performing platforms, World Chain excelled with a TVL increase of 27.6%. ZK Rollups showed resilience, with Starknet and zkSync Era growing by 7.4% and 12.2%, respectively.

Some mature platforms are facing challenges, with Blast and Fuel experiencing significant declines in TVL. Linea and Scroll also saw slight decreases.

The competitive dynamics of the ecosystem continue to evolve, with Optimistic Rollup and ZK Rollup demonstrating varying degrees of success. As new entrants join the ecosystem, mature platforms focus on consolidating their market position by enhancing functionality and user experience.