January 2025 Crypto Market Analysis Report

In January 2025, the total market capitalization of the crypto market increased by 7.2%, reaching $2.8 trillion. Under the dual impact of new regulatory policies and breakthroughs in artificial intelligence technology, major blockchain platforms exhibited varied performances, with Bitcoin further consolidating its market dominance, rising to a share of 71.3%.

Market Overview

The price of Bitcoin increased from $94,577 to $102,180, a rise of 8.0%. In contrast, Ethereum performed relatively weakly, dropping from $3,353 to $3,292, a decline of 1.8%, with the ETH/BTC ratio hitting a nearly five-month low.

Multiple important policy developments have had a significant impact on the crypto market. The new government's executive order on cryptocurrency regulation provides unprecedented clarity for the industry, with a particular emphasis on protecting 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.

A family of a certain political figure has launched a token on Solana, triggering significant volatility in the Memecoin sector. This wave of speculation has notably diverted attention and funds from the market's other encryption sectors, including the blockchain gaming space.

Breakthroughs in the field of artificial intelligence have also impacted market dynamics. This progress has accelerated the focus on decentralized AI infrastructure within the crypto ecosystem, with AI-related tokens experiencing an increase this month.

Layer 1 Public Chain Analysis

In January 2025, the total market value of blockchain rose by 7.2% to $28 trillion, with Bitcoin's market dominance further increasing to 71.3%. Ethereum's share continued to decline to 14.0%, while Solana surpassed the BNB chain (3.4%) again with a market share of 4.0%. Other public chains collectively held a 7.4% 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 market cap growth. Litecoin and Monero rose 23.5% and 21.6%, respectively. Cardano's market cap increased by 11.9% to $33.2 billion.

Emerging platforms maintain their development momentum, with Sui's market value stabilizing at $12.4 billion in an increasingly competitive environment. Although TON's market value fell by 14.0% to $12 billion, it still maintains its position in the top ten. Hedera has shown good growth, with a market value increase of 14.2% to $11.7 billion.

Traditional Layer 1 platforms such as Polkadot, Near, and Aptos are under pressure, with market capitalization declining between 3.7% and 7.5%.

Bitcoin Layer 2 and Sidechains

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

Core maintains market leadership with a TVL of $660 million, down 9.3% from December, but still holds a 25.3% market share. Bitlayer shows strong growth, with TVL increasing 15.2% to $430 million (market share 16.8%), while BSquared performs excellently, with a TVL surge of 19.7% to $400 million (market share 15.3%).

Rootstock and BOB rank fourth and fifth with TVLs of $250 million and $240 million, respectively, with growth rates of 10.8% and 8.9%. Notably, AILayer's TVL grew by 13.2% to $230 million.

On medium-sized platforms, Merlin's TVL moderately declined by 3.7% to $170 million, while Stacks maintained steady growth, increasing by 4.0% to $120 million. Small platforms showed mixed performance, with BounceBit growing by 7.3%, while newcomers such as SatoshiVM and Naka fell by 11.6% and 14.9%, respectively.

Ethereum Layer 2

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% from December. The performance of market leaders showed divergence.

Despite a significant drop of 20.4% compared to December, a certain trading platform maintains its leading 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, only slightly down by 0.5%.

Among the best-performing platforms, World Chain excelled with a TVL increase of 27.6% to $350 million, while Paradex surged 50.3% to $37.2 million. ZK Rollups demonstrated resilience, with Starknet and zkSync Era growing 7.4% and 12.2% respectively, reaching a TVL of $900 million and $610 million.

Some mature platforms are facing challenges, with Blast TVL dropping 33.8% to $400 million and Fuel down 47.3% to $110 million. Linea and Scroll also fell by 5.7% and 5.2%, respectively.

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