Encryption of the Matthews: When the market value is divided by the mainstream currency, is there any chance that it will be available
Monk is facing severe squeeze, and their total market share is shrinking despite the increasing number of coins。
Original title: Capital Corporation in an Expressing Crystal University
_Other Organiser
Original language: Luffy, Foresight News
TL;DR
Encrypted investment maps continue to expand, while capital options for assets are becoming narrower: the market dominance of bitcoin is on the rise, while the growth of sequestered currencies and chain derivatives is squeezing market space. The Yamashita currency market is shrinking, with a significant increase in the head concentration effect: the top 10 market values now account for about 82 per cent of the total market value of the plate, a significant increase from 70 per cent five years ago. Since 2023, the performance of encrypted large currencies has been significantly better than that of medium and small currencies; the market has experienced the flow of funds following shocks, further reinforcing investors ' preference for high liquidity, mature capital assets。
The encryption portfolio continues to expand. Hundreds of new tokens are on line each year, stockmarks for digital asset-related operations are increasing, and monetization techniques are gradually linking traditional assets such as stocks and bulk commodities. At the same time as the investment choices are becoming richer, market capital becomes more selective。
Bitcoin's market dominance has returned to around 65 per cent, reaching its highest level since the beginning of 2021; at the same time, the market value of stable currencies and chain derivatives (such as packaging, pledge, cross-chain bridge, etc.) is close to 12.5 per cent. As a result, the Yamaya currency is facing double squeeze, and their total market share is shrinking despite the increasing number of coins。
This issue of the State of the Net Markets report will explore whether the encrypted market is going through a structural shift towards capital concentration. We will analyse the trends in market dominance and yield of the assets of different market-market ladders, different tracks, in order to explore whether capital is continuing to accumulate to smaller, larger and more mature tokens, or whether investment opportunities are still widely distributed
Trends in market value dominance
First, we analyse the market-market dominance rate. Bitcoin ' s market-market dominance (i.e. the share of bitcoin ' s market value relative to the total market value of encrypted markets) climbed to 65 per cent in 2025, up from 2021. It is a matter of concern that this growth has not been a short-term outbreak, but has been steadily rising in the long run since the bottom of 2022。
THE ROLL-OUT OF THE BITCOIN SPOT ETF HAS CONTRIBUTED TO THE DEEPENING OF THE INSTITUTIONALIZATION PROCESS, ATTRACTING MORE THAN $150 BILLION IN LONG-TERM CAPITAL, FURTHER CONTRIBUTING TO ITS CONTINUED HIGH MARKET-MARKET DOMINANCE. THIS TREND HAS CONSOLIDATED THE LOCATION OF BITCOIN'S "RISK AVOIDANCE ASSET" IN THE ENCRYPTED MARKET, MAKING IT A HIGHLY LIQUID, STANDARDIZED ENTRY POINT FOR TRADITIONAL INSTITUTIONAL INVESTORS INTO THE ENCRYPTED MARKET. THIS ROUND IS MORE PERSISTENT THAN THE PREVIOUS ROUNDS OF CATTLE MARKETS IN WHICH THE MARKET VALUE OF BITCOIN WAS RAPIDLY DILUTED。
Bitcoin dominance, data source: Coin Metrics
The structure of other assets in the encrypted market has also changed. The current market value is over $30 billion in stable currency and the share of chain derivatives in total market value is increasing. Such tokens perform different functions in the encryption ecology: stable currency is the dominant trading medium in the market, while chain derivatives provide investors with a right to the proceeds of the bottom asset or a channel to generate interest-bearing gains。
Encrypted market dominance distribution, data source: Coin Metrics
As a result, the Yamaki currency market is facing a dilemma. The range of investmentable targets retained is narrowing and the head-cum-head effects are becoming more apparent: market values continue to concentrate on more liquid and mature assets, which often have a clear application landscape, a clear regulatory development path, and can benefit fully from the wave of development of stable currency, decentralized finance (DeFi) and asset monetization。
UNLIKE THE PREVIOUS MARKET CYCLE, THE RATE OF ROTATION OF CAPITAL FROM THE MAINSTREAM TO THE SHAN CAPITAL HAS SLOWED SIGNIFICANTLY, AND ETF AND VARIOUS INSTITUTIONAL INVESTMENT INSTRUMENTS HAVE LOCKED MARKET LIQUIDITY FIRMLY IN THE HEAD. HOWEVER, THIS MARKET PATTERN MAY BE SUBJECT TO CHANGE WITH THE ROLL-OUT OF THE GENERIC LISTING STANDARD, THE ROLL-OUT OF THE MULTI-ASSET ETF TO WIDEN INVESTMENT CHANNELS FOR MORE LARGE-SCALE STOCKS, AND THE INTRODUCTION OF LEGISLATION ON MARKET STRUCTURE。
There's a tendency for a giant monopoly inside the banknote
Even within the banknotes, the concentration of capital is increasing. The top ten (excluding bitcoins) of the current market value represents about 82 per cent of the total market value of the plate, a significant increase from 64 per cent during the cattle market in 2021. In the last round of cattle markets, large amounts of small-scale coins, which had been short-lived in value, were gradually withdrawn from the market and replaced by a more head-effected plate pattern, with short-term market narratives with a shorter life cycle to sustain the continued high value of assets。
Former 10 market value of the capital, data source: Coin Metrics
We can also observe this concentration trend by crossing certain market value thresholds. Although the total market value of the encrypted market has been at record highs, the market value exceeds $1 billion, from about 105 at its peak in 2021 to about 58 today. This means that even though the total amount of assets in the market is increasing, there is a steady decline in the real "investmentable" currency. While this does not mean that the banknotes will decline, the focus of market finance may be further concentrated towards targets that have a solid foundation and are more risk-resistant。
The market value is higher than $1 billion
The following table summarizes the annual evolution of these market trends. Some indicators still show cyclical features, such as the fall in the market dominance of bitcoin in cattle and the rise in bear markets, but the market share of the top 10 is different: The proportion remained stable at 69-73 per cent in 2020-2024, regardless of market conditions, while it rose significantly to 82 per cent in 2025. This shift suggests that the market is undergoing a structural shift in favour of mature flagship assets rather than a mere short-term "back-up on high-quality assets"。
Source: Coin Metrics
Financial flows to mainstream currencies
This trend towards capital concentration is also reflected in the performance of asset returns. Since 2023, Chinese currencies (market value 1 billion - $10 billion) and particularly small currencies (market value less than $1 billion) have won large currencies (market value more than $10 billion) in two stages in 2024, but this trend has been sharply reversed in 2025, behind which the market's mood for Meme and other short-term narrative rounds has receded rapidly。
In equal weight terms, from January 2023 to the present, the total return on encrypted large capitalizations was about 365 per cent, while the return on Chinese and small capitalizations was only about 70 per cent and 55 per cent, respectively, with most of the increase accumulated in the previous period. This fragmentation of gains is a strong indication that the market ' s performance is increasingly skewed towards mature, liquid assets and that the increase in small capitalization coins is difficult to reverse the continuity of the previous cycle。
Market performance at different market sizes, data source: Coin Metrics
On October 10th, 2025, the market triggered a large-scale liquidation event due to the depletion of high leverage and liquidity. This event may further reinforce the tendency for capital to tilt towards defensive assets, with investors increasingly favouring high-liquidity assets rather than small capitalization assets with significantly higher volatility。
Conclusions
Data indicate that the encryption market is at a stage of change, maturity and integration. Although the number of assets in the encrypted market continues to increase and the traditional types of assets carried as a base infrastructure are becoming richer, the overall liquidity of the market is limited. At the same time, in the multi-asset portfolio, encrypted assets also have to compete for space with traditional risk-averse assets such as the stock market ' s popular investments in main lines, gold and so forth。
At present, capital continues to be concentrated in large and encrypted currencies, as well as in infrastructure tracks that support stable currencies, monetized assets and decentralised financial development. The importance of liquidity and size has increased further than in the past, as has the threshold at which the banknotes seek to attract long-term capital。
OF COURSE, IF THE RULES RELATING TO MARKET STRUCTURES BECOME CLEARER, THE CURRENCY AND MULTI-ASSET ETF CONTINUE TO SPREAD, AND THE MARKET LIQUIDITY ENVIRONMENT IMPROVES, THERE IS STILL THE POSSIBILITY OF A NEW SEASON. HOWEVER, IT IS FORESEEN THAT THE TARGET OF THE CURRENT ROUND WILL BE MORE CONCENTRATED AND CAPITAL OPTIONS MORE SELECTIVE THAN ANY PREVIOUS CYCLE。
