The cryptocurrency market saw Layer-1 blockchain market capitalizations rise by 6% in January 2025, despite mixed performance across different segments of the industry, according to a report by J.P. Morgan (NYSE:JPM).
What Happened: The report highlights a divergence between large-cap cryptocurrencies, which posted gains, and smaller altcoins, which generally underperformed.
Average daily trading volumes declined by 24%, reflecting a cooling-off period following the strong market performance in December 2024.
Bitcoin (CRYPTO: BTC) and Solana (CRYPTO: SOL) were the primary contributors to market cap growth in January, with Bitcoin rising 10% and Solana surging 25% over the month.
In contrast, Ethereum (CRYPTO: ETH) saw its market capitalization decline by one percent.
J.P. Morgan analysts emphasized that market appreciation was concentrated in a few large-cap cryptocurrencies, while most smaller Layer-1 tokens, including Polkadot (CRYPTO: DOT), Avalanche (CRYPTO: AVAX), and Toncoin (CRYPTO: TON), experienced double-digit losses in their market caps.
The report stated that the absolute change in the collective market capitalization for Layer-1 protocol …
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