The cryptocurrency market was a huge hit in the first quarter of 2025, with its total market capitalization down 18.6%. After peaking at $3.8 trillion in mid-January just before Donald Trump took office, the market cooled and closed the quarter at $2.8 trillion. In addition to this, the average daily trading volume also fell significantly, from 27.3% to $146 billion.
While the market was being pulled back, Bitcoin strengthened its relative position and increased its control to 59.1%. This suggests that even if BTC prices fell 11.8% in the quarter, Altcoins will bear the brunt of the brunt of the ATH in January, closing to nearly $82.5,000 from ATH in January.
One of the biggest stories of this period was the surge in meme coin market and crash. The launch of Donald Trump’s official memecoin and melania is being created daily on the Pump.fun platform, shortly after the memecoin outbreak began, thousands of tokens are being created daily.
The platform has reached a record of 72,000 new token deployments in a day at this height.
Related: Japan has encouraged people to adopt a nationwide Bitcoin strategy to advance global finance
How did Libra crashes affect meme sentiment and pumps?
After Argentinean President Javier Miley promoted a token called Libra, excitement over the politically-themed meme coin quickly faded. The coin’s price crashed shortly after his tweet, with its market capitalization plunging from $4.6 billion to just $221 million just hours after developer Ragpur. The incident has shaken up investors’ trust in the new meme token.
Some thought Milei’s account was being hacked, but he confirmed that the post was authentic. He then deleted it and claimed he had no idea about the project details. The investigation has now been launched by the government and the courts. Some accused Mairay of breaking ethics laws, but there is no evidence that he made money from the project.
Related: Trump to eat with Trump token whales – is this Web3 or is it old-fashioned politics?
Since then, activity in Pump.Fun has dropped dramatically. The number of new tokens deployed on the platform fell 56.3% from its peak in January, with only 31,000 being created daily by the end of March. Even the percentage of tokens that have successfully moved from the early stages of the platform known as “graduated” tokens has fallen to just 0.7% from 1.4% in January.
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