$ETH Something big is about to happen! Ethereum Layer 2 is facing a reshaping
In January 2025, the total market capitalization of the crypto market increased to $2.8 trillion, a rise of 7.2%, mainly influenced by new regulatory policies and breakthroughs in AI technology. Bitcoin led the rise, with its market share increasing to 71.3%, and the price rising from $94,577 to $102,180, an increase of 8.0%. In contrast, Ethereum performed poorly, with its price dropping 1.8% to $3,292, and the ETH/BTC ratio reached a new low since September 2024.
On the policy front, the cryptocurrency regulatory executive order from the Trump administration provides clear guidance, but tariff remarks have raised market concerns. The tokens launched by the Trump family on Solana have caused fluctuations in the Memecoin sector, diverting market attention. Meanwhile, DeepSeek's AI breakthroughs have heightened the focus on decentralized AI infrastructure.
In the Layer 1 domain, Bitcoin's dominance has increased, with Ethereum's share declining to 14.0%, and Solana's market share rising to 4.0%, surpassing the BNB chain. Stellar, Litecoin, Monero, and Cardano have all seen increases in market value. Emerging platforms such as Sui, TON, and Hedera are also maintaining development momentum, while traditional platforms such as Polkadot, Near, and Aptos are under pressure.
The total locked value in Bitcoin Layer 2 and sidechains grew by 5.2% to $2.6 billion, with Core maintaining its leading position, while Bitlayer and BSquared experienced strong growth. The total locked value in Ethereum Layer 2 decreased by 6.7% to $18.3 billion, with Arbitrum maintaining its leadership position, followed closely by Base and Optimism. World Chain and Paradex performed well, while some mature platforms like Blast and Fuel face challenges.
Overall, the crypto market is highly competitive, with Bitcoin's dominance being reinforced, while the Ethereum Layer 2 ecosystem is undergoing significant changes
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