- The crypto market has dropped to $2.17 trillion as extreme fear grips investors, with Bitcoin and Ethereum posting weekly losses.
- Trading volume, DeFi activity, and NFT sales also declined as market weakness spread across the sector.
The crypto market has entered a sharp downturn, with sentiment weakening across major assets and sectors. A wave of selling pressure has pushed valuations lower, while investor confidence continues to fade.
Market Cap Drops as Fear Spikes
The total crypto market capitalization has fallen to $2.17 trillion, marking a 3.02% decline in just 24 hours. At the same time, trading activity has slowed significantly, with global volume dropping 15.42% to $122.15 billion.
Market sentiment has also taken a heavy hit. The Crypto Fear and Greed Index has fallen to 18, placing the market firmly in the “Extreme Fear” zone. This level typically reflects strong caution among traders and increased uncertainty in short-term direction.
Bitcoin and Ethereum Extend Losses
The two largest digital assets continue to set the tone for the broader market. Bitcoin declined by 0.78%, trading at $63,426.82. Despite the dip, Bitcoin still holds a dominant market share of 58%, showing its continued influence over the sector.
Ethereum performed weakly, falling 3.11% to $1,736.23. Its market dominance now stands at 9.6%, reflecting reduced strength compared to Bitcoin during the current downturn.
DeFi and NFT Markets Lose Momentum
The decentralized finance sector also moved lower. Total value locked (TVL) in DeFi dropped 1.98% to $73.113 billion. Leading protocols saw mixed performance, with Lido slipping slightly while smaller projects posted sharp but isolated gains.
NFT activity followed the same direction. Total sales volume fell 8.65% to $1.64 million, showing reduced participation from traders. Even leading collections such as CryptoPunks continued to see lower price activity.
Despite the broader decline, a few tokens posted strong gains. Assets like $TSLA, $TRUMP, and $HBTC recorded triple-digit percentage increases within 24 hours. However, these moves remain isolated and do not reflect overall market conditions.
Industry Developments Continue Behind the Downtrend
Even as prices fall, major industry activity continues. Coinbase has partnered with Fannie Mae to explore crypto-backed mortgage options, signaling early steps toward traditional financial integration.
Forward Industries also moved a large amount of $SOL holdings to Coinbase Prime after a period of inactivity. Meanwhile, Ripple has expanded its stablecoin ecosystem by working with Wormhole to enable multi-chain rollout of RLUSD across more than 40 blockchains.
The market remains under pressure as fear dominates sentiment and liquidity weakens. Traders are now watching whether Bitcoin can stabilize above key levels and whether Ethereum can avoid further downside in the short term.
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