Source: Cointelegraph Original: "{title}"
Despite increasing uncertainty related to tariffs, analysts at Nansen suggest that there is a 70% chance the crypto market will find a local bottom in the next two months, which will support the next phase of the 2025 cycle's rise.
Even as market volatility intensifies and risk appetite declines, savvy traders are still creating generational wealth. An anonymous trader turned an initial investment of $2,000 into over $43 million by trading the popular frog-themed meme coin, Pepe.
Nansen: 70% chance crypto market will bottom out before June amid trade panic
Due to global uncertainty surrounding ongoing import tariff negotiations, the crypto market is expected to hit a local bottom in the next two months, which is also constraining investor sentiment in both traditional and digital markets.
On April 2, 2025, U.S. President Trump announced reciprocal import tariff measures aimed at reducing the country’s estimated $1.2 trillion trade deficit and promoting domestic manufacturing.
While global markets were shaken by the initial tariff announcement, according to Aurelie Barthere, chief research analyst at the Nansen crypto intelligence platform, there is a 70% probability that cryptocurrency valuations will bottom out before June.
The research analyst told Cointelegraph: “Nansen's data estimates that crypto prices will bottom out between now and June, with BTC and ETH down 15% and 22% respectively from their year-to-date highs. Based on this data, the upcoming negotiations will become important market indicators.”
She added, “Once the toughest part of the negotiations is over, we believe that cryptocurrencies and risk assets will see clearer opportunities, ultimately marking the arrival of the bottom.”
Crypto trader turns $2,000 in PEPE into $43 million
A savvy cryptocurrency trader reportedly turned $2,000 into over $43 million by investing in the meme coin Pepe at its peak valuation, despite the token's extreme volatility and lack of fundamental technical value.
According to blockchain intelligence platform Lookonchain, the trader achieved over 4,700 times their investment return by investing in the popular frog-themed meme coin Pepe (PEPE).
Lookonchain wrote in a post on X on March 29: “This OG spent just $2,184 to buy 15 trillion $PEPE (worth $43 million at its peak), sold 10.2 trillion $PEPE for $6.66 million, and is left with 4.93 trillion $PEPE (worth $3.64 million), totaling a profit of $10.3 million (4,718 times).”
Source: Lookonchain
Cointelegraph Markets Pro data shows that despite Pepe's price dropping over 74% from its all-time high of $0.00002825 on December 9, 2024, the trader still realized over $10 million in profit.
PEPE/USD historical chart. Source: Cointelegraph Markets Pro
Memecoins are considered one of the most speculative and volatile digital assets, with price fluctuations primarily driven by network enthusiasm and social sentiment rather than fundamental utility or innovation.
Nevertheless, they have proven capable of generating life-changing returns. According to on-chain data, in May 2024, another early Pepe investor turned $27 into $52 million, achieving a return of 1.9 million times.
CoinFund's Pakman: $1 trillion stablecoin supply could drive the next crypto bull market
According to David Pakman, managing partner at crypto-native investment firm CoinFund, the global supply of stablecoins could surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth.
Pakman stated during Cointelegraph's Chainreaction live show on March 27, 2024: “We are in an upward trend of stablecoin adoption, and we expect a significant increase this year. We could see the stablecoin supply grow from $225 billion to $1 trillion within this calendar year.”
He noted that while this growth is relatively moderate compared to global financial markets, it would represent a “meaningful” shift for blockchain-based finance.
Pakman also mentioned that the increase in on-chain capital flows, along with growing interest in exchange-traded funds (ETFs), could further support decentralized finance (DeFi) activity:
“If there’s a moment this year that allows ETFs to provide staking rewards or yields for holders, it would unleash a real boost in DeFi activity.”
Avalanche stablecoin supply rises 70% to $2.5 billion; AVAX demand lacks DeFi deployment
Over the past year, the supply of stablecoins on Avalanche has surged significantly, but the deployment of these funds on-chain shows passive investor behavior, which may limit demand for the network's utility token.
According to a post on X by Avalanche, the supply of stablecoins on the Avalanche network increased by over 70% in the past year, rising from $1.5 billion in March 2024 to $2.5 billion by March 31, 2025.
Market capitalization of stablecoins on the Avalanche platform. Source: Avalanche
Stablecoins serve as a primary bridge between fiat currency and the world of cryptocurrencies, and an increase in stablecoin supply is often seen as a signal of impending buying pressure and growing investor demand.
However, despite the $1 billion increase in stablecoin supply, the token for Avalanche (AVAX) has been on a downward trend, dropping nearly 60% over the past year, with the current trading price just above $19, according to Cointelegraph Markets Pro data.
AVAX/USD one-year chart. Source: Cointelegraph Markets Pro
“Clearly, the contradiction between the surge in stablecoin value on Avalanche and the significant drop in AVAX price may stem from how this stablecoin liquidity is held,” said Juan Pellicer, senior research analyst at the IntoTheBlock crypto intelligence platform.
DeFi total value locked (TVL) drops 27%, while AI and social applications grow
DappRadar: Growth in Q1 2025
Economic uncertainty and the hacking incident of major crypto exchanges led to a 27% quarter-over-quarter decline in total value locked (TVL) in decentralized finance (DeFi) protocols, dropping to $156 billion, while AI and social applications gained favorable positions in user growth, according to a report from a crypto analytics firm.
DappRadar's report released on April 3 noted that economic uncertainty and the aftershocks of the Bybit hack were the main factors behind the 27% quarter-over-quarter decline in DeFi TVL, and it also pointed out that during the same period, the price of Ethereum (ETH) fell by 45%, down to $1,820.
Changes in DeFi TVL from January 2024 to March 2025. Source: DappRadar
As of Q1 2025, the decentralized finance (DeFi) market is under pressure, with most of the top 100 cryptocurrencies experiencing declines within a week.
In terms of TVL, the largest blockchain, Ethereum, fell by 37% to $96 billion, while Sui saw the largest drop among the top 10 blockchains by TVL, plummeting 44% to $2 billion.
The TVL of Solana, Tron, and Arbitrum blockchains also fell by over 30%.
Meanwhile, blockchains that experienced significant DeFi withdrawals and have fewer stablecoins locked in their protocols are facing additional pressure beyond just token price declines.
The newly launched Berachain is the only blockchain among the top 10 by TVL that saw an increase, accumulating a TVL of $5.17 billion from February 6 to March 31, DappRadar noted.
DeFi market overview
According to data from Cointelegraph Markets Pro and TradingView, most of the top 100 cryptocurrencies by market capitalization have seen declines over the past week.
The Pi Network (PI) token dropped over 34%, becoming the largest decliner of the week, followed closely by the Berachain (BERA) token, which saw a weekly decline of nearly 30%.
DeFi TVL. Source: DefiLlama
Related: TradFi market dynamics continue to evolve, Bitcoin ETF loses $326 million
Thank you for reading our summary of the most impactful DeFi developments this week. Join us next Friday for more stories, insights, and knowledge about this thriving space.
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