- Bitcoin dropped 12% and Ethereum fell 16.4%, reflecting macro pressure and investor fatigue.
- AI tokens like Fetch.ai and Render crashed 80%+, signaling the Web3 AI bubble burst.
- Zcash soared 505.9%, becoming 2025’s biggest gainer amid rising privacy demand.
The cryptocurrency market wrapped up 2025 with a mix of devastating losses and surprising outliers. From Christmas Day 2024 to 2025, as highlighted in a viral X post by analyst DamiDefi, most major assets experienced significant price drops, underscoring a year plagued by macroeconomic headwinds, regulatory scrutiny, and shifting investor sentiment.
Bitcoin (BTC), often seen as the market’s bellwether, fell 12% from $99,299 to $87,390. This decline came despite optimistic forecasts following the 2024 halving event. Analysts attribute it to persistent inflation concerns and interest rate hikes from global central banks, which dampened risk appetite. Ethereum (ETH) fared worse, dropping 16.4% to $2,921, as the transition to proof-of-stake failed to deliver the expected scalability boosts amid network congestion and competition from layer-2 solutions.
Layer-1 and Layer-2 Ecosystems Face Harsh Corrections
Layer-1 and layer-2 ecosystems bore the brunt of the downturn. Solana (SOL) tumbled 38.2% to $122, hampered by recurring outages and a slowdown in meme coin mania that had fueled its 2024 surge. Avalanche (AVAX), Sui (SUI), and Near Protocol (NEAR) saw drops of 70.3%, 69.6%, and 72.6% respectively, as DeFi TVL migrated to more efficient chains. Optimism (OP) and Aerodrome (AERO) plunged 86.5% and 69.9%, reflecting oversaturation in the rollup space and reduced yield farming incentives.
The AI sector, a darling of 2024’s narrative, suffered the most dramatic reversals. Bittensor (TAO), Render (RENDER), and Fetch.ai (FET) cratered 55.9%, 83.2%, and 84.8%, as real-world AI adoption lagged behind hype, leading to massive sell-offs from venture capital unlocks. Internet Computer (ICP) and Injective (INJ) followed suit with 72.3% and 80.2% losses, hit by protocol upgrades that underdelivered.
Few Bright Spots: BNB and Zcash Defy the Downtrend
Yet, not all was doom. Binance Coin (BNB) rose 19.6% to $840, bolstered by Binance’s expansion into tokenized assets and regulatory wins in key markets. The standout was Zcash (ZEC), skyrocketing 505.9% to $446, fueled by growing privacy demands amid government surveillance crackdowns and integrations in DeFi privacy pools.
This year’s volatility exposed Web3’s maturation pains: overleveraged positions, narrative fatigue, and external economic pressures. As 2026 approaches, investors are eyeing recovery signals, but caution remains key. The market’s resilience lies in innovation—perhaps the next cycle will favor fundamentals over frenzy.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
