Crypto Market Under Pressure: Bitcoin Stabilizes at $89,000 as Altcoins Decline Sharply

Bitcoin Holds Above $89,000

Following a sharp price drop to approximately $88,300, Bitcoin stabilized above $89,000 at the start of the week^[3]. This places BTC roughly 3 percent below the previous day's level. Market turbulence led to substantial liquidations: over $200 million in leveraged positions were forcibly liquidated within just four hours^[3].

The overall crypto market capitalization remains at just over $3 trillion—a substantial level—but declined more than 3 percent over a 24-hour period^[3]. Bitcoin dominance currently stands at approximately 58 percent.

Altcoins Face Significant Selling Pressure

While Bitcoin demonstrates some stability, major altcoins are hit harder. Ethereum, Solana, and XRP are trading approximately 3 to 4 percent lower at around $3,000, $132, and $2.02 respectively, dragging the broader altcoin market down with them^[3]. XRP investors are currently in turmoil following a specific indicator trigger^[3].

Protocols Generate Strong Volumes Despite Market Pressure

Amidst the general sell-off, it is worthwhile to examine those protocols that continue to generate robust revenues despite price pressure and negative sentiment^[1]. According to current data from DeFiLlama, Tether leads the list of highest-revenue protocols over the last 30 days. The company manages reserves backing USDT, invests the majority in short-term U.S. Treasury bonds, and generates interest income from them^[1].

Ranking third is Hyperliquid, the first genuine DeFi protocol^[1]. Behind it come edgeX, Fragment, Pump.fun, Lighter, Axiom Pro, Jupiter, and Sky. Most of these protocols are derivatives and trading platforms where perpetual futures—popular in crypto—are predominantly traded^[1]. They primarily earn from trading fees.

Remarkably, despite the end of memecoin season, Pump.fun, a Solana-native launchpad for new tokens, continues to rank among the highest-revenue protocols^[1]. The platform earns from both token launches and subsequent trading activity.

Valuation Requires Differentiated Analysis

However, experts warn against automatically interpreting high volumes as a buy signal. High volume can indicate strong product-market fit and active usage, but reveals nothing about how much actually reaches token holders, how sustainable the business model is, how highly the project is already valued, and what risks exist^[1].

December Effect on Memecoins

Historical data suggests that memecoins such as Dogecoin, Pepe, and Bonk frequently experience rallies in December^[2]. Reasons cited include increased demand during the holidays when investors have more time to engage with cryptocurrencies. Additionally, there is a psychological component: many investors are more optimistic during the holidays and willing to take greater risks^[2].

For risk-tolerant investors, opportunities may arise in the current market phase—provided they consider the fundamental data of protocols and their actual revenue streams.