The cryptocurrency market staged a strong recovery in April, with total market capitalization rising 9.9% according to the latest research report. Despite a rocky start to the year, sentiment turned positive—fueled in part by a temporary 90-day pause in trade tariffs that offered traders brief relief amid ongoing macroeconomic uncertainty.
This rebound was powered by renewed institutional confidence, expanding liquidity, and growing regulatory clarity—especially in the centralized finance (CeFi) and stablecoin sectors. As Bitcoin reasserted its dominance and application-layer protocols captured record fees, the ecosystem showed signs of maturing resilience.
👉 Discover how market dynamics are shifting in 2025’s evolving crypto landscape.
Bitcoin Reclaims Dominance Amid Institutional Adoption
Bitcoin's market dominance climbed to 63% in April—the highest level in four years—signaling a powerful shift back toward the original cryptocurrency as a preferred store of value. This resurgence comes as both institutional and retail investors increasingly view Bitcoin as digital gold, particularly amid global economic volatility.
After briefly dipping below $75,000 earlier in the year, Bitcoin recovered strongly, reaching nearly $90,000 by the end of April. This rally was supported by the largest year-to-date inflows into spot Bitcoin ETFs, underscoring its growing role as a core asset class during times of financial uncertainty.
A key driver behind Bitcoin’s strength lies in global monetary supply trends. Research shows a strong historical correlation (0.79) between Bitcoin’s performance and M2 liquidity expansion across G4 economies—the United States, European Union, Japan, and China. With combined M2 money supply exceeding $93 trillion, ample liquidity has continued to fuel demand for inflation-resistant assets like Bitcoin.
As macro conditions stabilize and central banks signal potential rate cuts in 2025, analysts expect sustained interest in Bitcoin from pension funds, endowments, and sovereign wealth entities exploring long-term digital asset allocations.
Regulatory Progress Fuels DeFi Innovation
Regulatory developments in April provided a significant boost to decentralized finance (DeFi). U.S. lawmakers introduced legislation aimed at standardizing oversight for dollar-backed stablecoins—a move widely welcomed by the DeFi community. Clearer rules are expected to increase trust, reduce systemic risk, and accelerate mainstream adoption of on-chain financial services.
DeFi’s total value locked (TVL) rose 3.3% in April, aligning with broader market momentum. Notably, BNB Chain, Solana, and Tron emerged as standout ecosystems that expanded their TVL during the period. These networks continue to attract developers and users due to lower transaction costs and improved scalability.
Institutional capital also flowed into key players within the crypto space. Major funding rounds included MGX’s $41.42 billion investment in Binance and Kraken, while Ripple made headlines with a strategic acquisition that strengthened its cross-border payment infrastructure.
These moves reflect a growing trend: traditional financial institutions are no longer观望 but actively building or investing in blockchain-based solutions to stay competitive in the digital economy.
👉 See how institutional capital is reshaping the future of finance.
CeFi Sees Surge in Investor Interest
Centralized finance (CeFi) platforms captured 41.42% of all crypto investments in the first four months of 2025—up sharply from just 15.2% in previous periods. This surge reflects growing trust in regulated exchanges and custodial services that offer ease of access, compliance, and integration with traditional financial systems.
A major catalyst was the launch of Canada’s first spot Solana (SOL) ETF, which drove a 6.07% increase in SOL’s price. The product has sparked increased demand for equivalent U.S.-listed ETFs, with asset managers preparing filings ahead of anticipated regulatory approvals.
Political developments also contributed to clearer regulatory pathways. Following policy shifts after the 2024 election cycle, institutional investors gained greater confidence in entering CeFi markets. New financial instruments like 21 Capital—backed by Tether, SoftBank, and other major players—are emerging as hybrid vehicles that bridge traditional finance with digital asset infrastructure.
Application Layer Captures Record Fee Revenue
For the first time, the application layer accounted for over 70% of all transaction fees generated on blockchain networks—marking a pivotal shift in how value is distributed across the crypto economy.
April’s fee data revealed that stablecoins led the rankings with $644 million in fee revenue, surpassing both decentralized exchanges (DEXs) and liquid staking protocols. In contrast, foundational protocol layers—such as consensus and data availability—collected only 6.4% of fees, down significantly from 35.2% six months ago.
This shift highlights the growing economic power of use-case-driven applications. However, when stablecoin-related fees are excluded, application-layer revenue drops to just 24%, suggesting that broader adoption beyond payments and settlements remains a challenge.
Still, the trend indicates that value creation is moving up the stack—from infrastructure to real-world utility—driven by demand for fast, low-cost transactions in areas like remittances, commerce, and tokenized assets.
Frequently Asked Questions
Q: What caused the crypto market rebound in April?
A: The recovery was driven by rising Bitcoin dominance, strong ETF inflows, improved liquidity conditions, and regulatory clarity—particularly around stablecoins and CeFi platforms.
Q: Why is Bitcoin’s market dominance important?
A: High dominance often signals risk-off behavior, where investors rotate into Bitcoin as a safe-haven asset during uncertain times. It also reflects reduced speculative activity in altcoins.
Q: How are institutions influencing the crypto market?
A: Institutions are investing directly via ETFs, venture funding, and new financial products like 21 Capital. Their involvement brings capital stability and long-term growth potential.
Q: What does the rise of application-layer fees mean for investors?
A: It suggests that profitable opportunities are shifting toward projects with real usage—such as stablecoins and DeFi apps—rather than just base-layer protocols.
Q: Is DeFi still growing despite market fluctuations?
A: Yes. DeFi TVL increased 3.3% in April, with BNB Chain, Solana, and Tron leading growth—showing resilience and ongoing innovation even in volatile conditions.
Q: Could Solana ETFs come to the U.S.?
A: While not yet approved, growing demand—fueled by Canada’s successful launch—may pressure U.S. regulators to consider similar products in 2025.
Mixed Performance Across Altcoins
April delivered mixed results for altcoins:
- SUI surged 54%, boosted by Grayscale’s launch of a dedicated investment trust and Mastercard’s integration of SUI-powered virtual cards.
- SOL rose amid growing institutional demand and Canada’s debut spot ETF.
- BTC gained 13.2% as states like Arizona advanced legislation to hold Bitcoin on treasury balance sheets.
- LINK, ADA, and DOGE posted modest gains.
- ETH and BNB saw slight declines due to internal ecosystem developments and shifting investor focus.
NFT trading volume declined 16.3% month-over-month. While Ethereum-based NFT activity slowed, Polygon saw gains driven by rising interest in real-world asset (RWA)-backed NFT platforms—indicating a shift toward utility-focused digital collectibles.