The cryptocurrency market faced significant headwinds in April 2025, with declining valuations, reduced activity in decentralized finance (DeFi), and a slowdown in non-fungible token (NFT) trading volumes. Drawing insights from the latest Binance Research report, this article provides a comprehensive overview of key market dynamics, analyzes performance trends across major digital assets, and highlights critical events investors should monitor in May.
Market Overview: A Challenging Month for Crypto
April 2025 proved to be a difficult period for the crypto ecosystem, as total market capitalization dropped by 11.3%, extending the broader consolidation trend observed over recent months. This downturn was driven by shifting interest rate expectations, ongoing geopolitical tensions, and cooling demand for spot Bitcoin exchange-traded funds (ETFs) following their initial surge.
Despite these macro pressures, several positive developments signaled sustained institutional interest and structural growth within the space. Notably, six crypto-based spot ETFs launched trading in Hong Kong on April 30 after receiving regulatory approval—marking a pivotal step toward mainstream adoption in Asia. Additionally, the total supply of USD-pegged stablecoins reached a two-year high, with both USDT and USDC showing continued expansion. This growth reflects persistent capital inflows into the crypto economy, even during bearish price conditions.
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Top 10 Cryptocurrencies: Mixed Performance Amid Broader Downturn
Among the top ten cryptocurrencies by market cap, most posted negative returns by month-end. Bitcoin (BTC) and Ethereum (ETH) each declined by approximately 8%, reflecting risk-off sentiment across major digital assets.
However, regulatory momentum offered a silver lining: three spot Bitcoin ETFs and three spot Ethereum ETFs were approved in Hong Kong, reinforcing the long-term legitimacy of these leading networks. Meanwhile, TON (The Open Network) stood out with a 1.0% gain, driven by strong ecosystem engagement—its monthly active addresses and total value locked (TVL) both hit all-time highs in April. BNB also demonstrated relative resilience, falling only 1.4%, continuing its track record of outperforming peers over the past year.
On the downside, XRP and SHIB dropped 17.1% and 19.2% respectively, while DOGE, ADA, SOL, and AVAX were among the worst performers, nearing 30% losses by April’s close.
DeFi Ecosystem: Stability Amid Declines
The decentralized finance sector remained relatively stable despite a slight contraction in total value locked (TVL), which decreased by just 0.7% for the month. This marginal decline suggests that while new capital inflows slowed, existing liquidity remained largely intact.
Among the top blockchains by TVL, Merlin Chain—a Bitcoin layer-2 solution—emerged as the fastest-growing network, recording a staggering 1000% monthly growth and surpassing $1 billion in TVL. Its rapid ascent underscores growing interest in Bitcoin-based DeFi applications.
Two protocols stood out in terms of user adoption and locked assets:
- Pendle, a yield-trading protocol, reported over $5 billion in TVL and cumulative trading volume exceeding $15 billion.
- Hyperliquid, a decentralized derivatives exchange, surpassed $435 million in TVL, overtaking established chains like Aptos, Near, and Cardano in DeFi activity.
These figures highlight a shift toward niche financial instruments and high-efficiency trading platforms within the DeFi landscape.
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NFT Market: Bitcoin Dominates Amid Volume Slump
The NFT market saw a sharp decline in April, with monthly trading volume falling 21% to $1.11 billion. Investor enthusiasm waned across major platforms, particularly for Ethereum-based collections.
Notably, four of the top five best-selling NFT series during the month were built on Bitcoin, including Ordinals, PUPS, WZRD, and NodeMonkes, which collectively generated $423 million in sales. This trend indicates a growing preference among collectors for Bitcoin-native digital assets.
In terms of chain-specific NFT sales:
- Bitcoin led with $567 million
- Ethereum followed at $241 million
- Solana recorded $153 million
While Bitcoin’s transaction volume declined only 5%, Ethereum and Solana saw drops approaching or exceeding 50%. This widening gap suggests a structural realignment in collector behavior, favoring Bitcoin’s cultural narrative and scarcity-driven models over traditional smart contract platforms.
Upcoming Events to Watch in May 2025
As the market navigates this period of consolidation, several key developments could catalyze renewed momentum in May:
- Regulatory updates on global crypto frameworks
- Launch of new yield-bearing products in DeFi
- Major ecosystem upgrades across Layer 1 blockchains
- Anticipated token unlocks for large-cap projects
Binance Research has identified significant token unlocks scheduled throughout May, some of which may impact market dynamics due to potential selling pressure. Monitoring these events will be crucial for traders and long-term investors alike.
Frequently Asked Questions (FAQ)
Q: Why did the crypto market decline in April 2025?
A: The downturn was primarily driven by changing interest rate expectations, geopolitical uncertainty, and reduced trading volume in spot Bitcoin ETFs. These factors combined to create a risk-averse environment across digital assets.
Q: Which blockchain showed the strongest growth in DeFi during April?
A: Merlin Chain experienced explosive growth, with its TVL increasing by 1000% to exceed $1 billion—making it the fastest-growing blockchain in the DeFi space.
Q: Are NFTs still relevant in 2025?
A: Yes, but the landscape has evolved. Bitcoin-based NFTs like Ordinals are gaining prominence, while Ethereum-based collections face weaker demand. The market is shifting toward culturally significant, scarcity-driven projects.
Q: What impact do token unlocks have on crypto prices?
A: Large token unlocks can increase circulating supply, potentially leading to downward price pressure if holders sell. However, if the project fundamentals are strong and unlocks are well-communicated, the effect may be minimal.
Q: How important are ETF approvals for crypto markets?
A: Extremely. The approval of spot Bitcoin and Ethereum ETFs in Hong Kong signals growing institutional acceptance and opens new investment channels, especially in Asian markets.
Q: Is stablecoin growth a bullish sign for crypto?
A: Yes. Rising stablecoin supply often precedes increased trading activity and market participation, acting as a leading indicator of future demand.
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Final Thoughts
April 2025 served as a reality check for the crypto market after months of bullish momentum. While prices corrected and activity slowed in DeFi and NFTs, underlying fundamentals remain robust—with expanding stablecoin supply, growing institutional adoption via ETFs, and innovation accelerating on Bitcoin layers.
May presents an opportunity for recovery and repositioning. Investors should closely track regulatory developments, major token unlocks, and emerging trends in yield generation and digital collectibles. By staying informed and adaptable, participants can navigate volatility and capitalize on the next phase of Web3 evolution.
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