The cryptocurrency market cap rose by 9.9% in April, marking a strong rebound from the previous month—likely supported by the 90-day pause on tariffs. While the temporary suspension (excluding key trade partners such as Canada, Mexico, and China) offered some relief, investor sentiment remains cautious over the long-term implications. Global trade and business confidence continue to lag, reflecting ongoing macroeconomic uncertainty and persistent trade tensions.
Bitcoin's dominance has surged to a four-year high of 63%. Amid tight financial conditions and geopolitical uncertainties, Bitcoin's appeal as a hedge against risks could sustain its outperformance over riskier crypto assets. Driven in part by its "digital gold" narrative and adoption as a reserve asset, institutional interest in Bitcoin is evident, with its ETF attracting significantly more inflows than Ethereum's.
In April, G4 (U.S., Japan, China, and Europe) M2 is projected to exceed a record US$93T, reflecting ongoing global liquidity expansion driven by central bank policies and fiscal stimulus. G4 M2 growth has historically shown a strong positive correlation with Bitcoin’s market cap (currently a 0.79 rolling coefficient). This liquidity backdrop likely continues to support Bitcoin through increased risk appetite and demand for inflation hedges.
Since December 2024, Centralized Finance (CeFi) companies have accounted for an average of 41.42% of all funds raised each month, a sharp increase from 6.07% between April and November 2024, which coincided with a favorable regulatory shift following President Trump's election.
The application layer now captures over 70% of total on-chain fees, while protocol (blockchain) fees have declined to just 28.8%. Stablecoin issuers dominate with 47.2% of fees in April, followed by decentralized exchange (DEX) and liquid staking. The shift highlights how value is increasingly accruing at the user-facing layer. Still, without stablecoins, the application layer’s share drops to just 24.0%, pointing to a trend driven by specific use cases.
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