The cryptocurrency market is showing a robust recovery after a period of tariff-induced volatility, with total market capitalization climbing 4.31% to $3.89 trillion. The renewed momentum is accompanied by a 10.34% rise in 24-hour trading volume, which now sits at $262.37 billion. Sentiment is improving across the sector, with the Crypto Fear & Greed Index moving back into the “Neutral” zone at 40 points, signaling a cautious but optimistic market outlook.
Bitcoin ($BTC), the flagship digital asset, has gained 2.57%, trading around $114,668.89 while maintaining a market dominance of 58.8%. Ethereum ($ETH) has outpaced its peers with an 8.31% surge, reaching $4,127.30 and asserting a market share close to 12.8%. The gains reflect growing investor confidence following a period of corrective price action and highlight renewed interest in both store-of-value and smart contract-focused assets.
Among altcoins, Axolotl Token ($AXOME), MAGA ($PEOPLE), and TRUMP MAGA ($MAGA) have led the charge, posting extraordinary daily gains. $AXOME soared an unprecedented 4933.29% to $0.001459, while $PEOPLE climbed 570.80% to $0.0002708. $MAGA also surged 404.33% to $0.6079. Such dramatic movements, while remarkable, underscore the volatility and speculative nature of smaller-cap tokens, offering both opportunity and risk to investors.
The decentralized finance (DeFi) space has also experienced meaningful growth, with total value locked (TVL) rising 6.65% to $157.087 billion. Aave, the leading DeFi protocol by TVL, recorded a 4.90% increase to $41.337 billion, while Vector Finance led short-term gains with an eye-popping 1126% one-day increase. Similarly, the NFT market is showing renewed vigor, with sales volume jumping 51.87% to $31,156,364. Top collections like Pudgy Penguins reported a 43.87% rise in volume, now totaling $5,609,526.
Notable developments in the crypto ecosystem have accompanied these market movements. Binance CEO Changpeng Zhao responded to allegations from Hyperliquid Founder Jeff Yan regarding underreporting of consumer liquidations, highlighting the company’s personal financial commitment to protecting clients. Additionally, Bitcoin mining giant Marathon acquired 400 BTC during the recent market downturn, demonstrating institutional confidence in the long-term value of the asset. Hyperliquid traders have also capitalized on market volatility, with one reportedly earning $192 million by shorting the market during the crash.
From a market perspective, this rebound suggests growing resilience in both institutional and retail investor participation. The surge in DeFi TVL and NFT sales points to continued innovation and liquidity inflows, while Bitcoin and Ethereum gains reinforce their roles as market bellwethers. Experts note that sustaining this momentum may depend on regulatory clarity, macroeconomic conditions, and investor sentiment, all of which remain dynamic.
Looking ahead, the current recovery could mark a turning point for the crypto market, balancing volatility with renewed growth prospects. For investors and market observers alike, the rebound highlights both the potential for significant returns and the enduring risks inherent to the evolving digital asset landscape.
