The cryptocurrency market's total market capitalization has broken through $3.27 trillion, with Bitcoin returning to the $100,000 mark, Ethereum surging 26% after the Pectra upgrade, and a trade agreement signed by Trump further boosting bullish sentiment.
Over the past week, the cryptocurrency market has continued to soar, with the total digital asset market cap breaking $3.27 trillion, an 8.6% increase from the previous week. Bitcoin reached a high of $103,600 on May 8th, marking its first return to the $100,000 level since January. Its market dominance has also exceeded 60%, reflecting stronger bullish sentiment. This is Bitcoin's third time reaching this milestone price point, following its first breakthrough in six digits on December 5th, 2024, and the second time just before Trump's inauguration on January 20th, 2025.
Bitcoin's rise coincides with Trump's announcement of a trade agreement with the UK, which may include the removal of a 10% comprehensive import tariff.
In the broader crypto ecosystem, the Ethereum Pectra upgrade implemented several much-needed improvements. After the upgrade, Ethereum's price surged 26%, jumping from $1,800 on May 7th to over $2,300 on May 9th.
Total crypto market cap, 1-year chart. Source: CoinMarketCap
Bitcoin DeFi Mining Participation Surges Despite TVL Decline
Messari's 2025 "Rootstock State of" report shows that merged mining participation reached a historic high of 81% in the first quarter of 2025 (compared to 56.4% in the previous quarter), primarily due to the addition of large mining pools like SpiderPool and Foundry.
The increased miner support has pushed Rootstock's hash rate beyond 740 EH/s, surpassing the Bitcoin network's total hash rate recorded in October 2024, marking a more mature stage of development for the platform.
Despite the surge in merged mining participation, the Rootstock ecosystem is facing headwinds. In the first quarter of 2025, the Total Value Locked (TVL) declined, with Bitcoin TVL dropping 7.2%, and the dollar-denominated TVL falling by over 20% quarter-on-quarter.
Rootstock overview for Q1 2025. Source: Messari
This reflects the broader downward trend in the DeFi sector, with Ethereum-based DeFi TVL declining 27% during the same period.
Hacken CEO Says Crypto Security Situation "Unchanged" as April Hacks Cause $357 Million in Losses
There were 18 crypto hacking incidents in April, resulting in nearly $3.6 billion in stolen assets. This figure represents an increase of nearly 1000% compared to March's losses.
The largest single loss came from an unauthorized Bitcoin transfer. On April 28th, blockchain investigator ZachXBT reported a suspicious Bitcoin transaction worth $330 million. He subsequently confirmed it was a social engineering attack targeting elderly Americans.
Source: PeckShield
During an interview with Cointelegraph at the Token2049 event, Hacken CEO Dyma Budorin stated that the industry still relies on limited security measures, even after the Bybit $1.4 billion hack. Budorin said the sector only implements limited measures rather than a comprehensive strategy.
"Most projects think 'we did penetration testing, and that's enough. Maybe add a bug bounty program.' That's far from sufficient," Budorin told Cointelegraph.
AI Decentralized Applications Competing for Web3 Throne: DappRadar Report
While games and DeFi still dominate the decentralized application (DApps) ecosystem, artificial intelligence is gradually catching up.
Data from blockchain analysis platform DappRadar shows that in April, game and DeFi DApps occupied 21% of the market share. AI DApps' share increased from 11% in February to 16%.
DappRadar analyst Sara Gherghelas stated: "As user interest in AI tools grows across industries, AI-driven DApps are steadily carving out their territory in the decentralized ecosystem."
AI DApps have seen a jump in market dominance this month, while market leaders have declined slightly. Source: DappRadar
Gherghelas added that if this trend continues, AI might challenge DeFi and gaming's dominance, signaling a "new era" in the DApp sector.
Bitcoin Collateral Loans Are "Obvious" Next Step - Xapo Bank CEO
Bitcoin holders are increasingly confident in using their BTC to borrow funds. In an interview at Token2049, Xapo Bank CEO Seamus Rocca told Cointelegraph that investor sentiment has shifted from short-term speculation to a more long-term view of Bitcoin.
Rocca said this confidence stems from broader institutional adoption and Bitcoin's price being "far from" liquidation levels.
Rocca noted that Bitcoin collateral loans allow holders to maintain their asset exposure when facing unexpected expenses. The executive suggested it's not wise to sell assets when prices are rising.
Xapo Bank CEO Seamus Rocca at the Token2049 media lounge. Source: Cointelegraph
However, when life presents urgent needs, Rocca pointed out that investors can borrow against their assets and pay interest to avoid Bitcoin liquidation. This way, they can obtain liquidity for expenses while continuing to hold the asset.
DeFi Market Overview
According to Cointelegraph Markets Pro and TradingView data, most cryptocurrencies in the top 100 by market cap closed higher this week.
Meme coin Pepe was the biggest winner, surging 53%, followed by Pudgy Penguins (PENGU) token, which rose 47% over the past week. Ethereum ranked third, with a 35% increase.
Total value locked in DeFi. Source: DefiLlama
