The cryptocurrency market is experiencing a sharp and broad-based downturn, with total market capitalization falling 2.49% to $2.18 trillion. Despite the price declines, trading volume surged by 41.15% to $104.78 billion, indicating heightened activity. The Crypto Fear & Greed Index has plummeted to a reading of 11, signaling 'Extreme Fear' among market participants—a sentiment level that has only been recorded three times since the index's 2018 inception.
Major assets like Bitcoin (BTC) and Ethereum (ETH) led the decline. BTC price dropped 3.10% to approximately $62,997.54, with its market dominance at 57.7%. ETH followed, declining 2.22% to trade around $1,823.61, holding a market dominance of nearly 10.1%.
In stark contrast, several memecoins posted staggering gains, defying the overall market trend. Harris Dogs ($DOGS) skyrocketed by 1,531.34% to $0.02496, Mubarak ($MUBARAK) surged 1,366.12% to $0.01263, and Trump Mog ($TRUMP) rallied 606.96% to $0.001085.
The downturn extended to decentralized finance (DeFi) and non-fungible tokens (NFTs). The total value locked (TVL) in DeFi protocols fell 3.31% to $91.139 billion, with leading protocol Aave seeing a 1.81% drop. NFT sales volume plunged 31.83% to $10.94 million.
Concurrently, key industry developments unfolded. The court-appointed dismantler for Terraform Labs filed a lawsuit against Jane Street Group, accusing it of using privileged information for gain during the collapse of TerraUSD and Luna. Separately, Trump-backed World Liberty Financial (WLFI) announced it successfully defended a coordinated attack on its $USD1 stablecoin. In exchange news, South Korea's Upbit listed the Seeker ($SKR) token for trading.
Adding to the negative sentiment, analysis shows the Crypto Fear & Greed Index hit a historic low of 5 earlier in the week. Santiment data revealed XRP realized losses surged to around $908 million over the past week—the largest since 2022—though some analysts view this as a potential bullish contrarian signal. Dogecoin (DOGE) recorded its sixth consecutive day of losses, trading around $0.09678 and down 21% over the past month.
