Throughout March, the crypto market continued its pullback from February, driven by macroeconomic uncertainty and policy changes in the United States. Amid this negative market sentiment, the sector witnessed some notable developments, which have been outlined by the research arm of the worlds largest crypto exchange, Binance.

According to a Monthly Market Insights report by Binance Research, the industry saw regulatory progress and growth in certain sectors in March, reinforcing positive sentiment for medium and long-term development.

Market Fell 4.4% in March

After United States President Donald Trump signed an executive order to create a strategic Bitcoin reserve in early March, the crypto market witnessed intense volatility that lasted throughout the month. This, coupled with the Federal Reserves decision to hold benchmark interest rates steady for a second consecutive meeting and tariff tensions, significantly subdued risk appetite, leading to a 4.4% decline.

Analyzing cryptocurrencies, the Binance Research team found that the supply of bitcoin (BTC) belonging to long-term holders is increasing. There has also been significant Bitcoin adoption since establishing a U.S. strategic Bitcoin reserve, with institutions increasingly buying the asset.

The increasing adoption has been driven by U.S. authorities taking major steps to regulate cryptocurrencies. The Office of the Comptroller of the Currency (OCC) recently authorized banks to hold cryptocurrencies, while the Guiding and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act, which creates a clear regulatory framework for stablecoins in the U.S., is moving closer to enactment.

Losses and Gains

Furthermore, March brought major shifts to the decentralized finance (DeFi) sector, with Bitcoin DeFi (BTCFi) recording significant growth. The U.S. Senate overturned a rule that would have required DeFi platform operators to be subject to heavy reporting requirements by the Internal Revenue Service (IRS).

Unfortunately, the DeFi total value locked (TVL) dropped 1.5% month-on-month (MoM), with intense competition leading to declining market share for some leading platforms like the decentralized exchange (DEX) Uniswap. Binance Research discovered that rival DEXs like PancakeSwap and Raydium have increased their market shares.

Notably, meme coins saw negative growth, with the market cap of top tokens declining by millions of dollars. Since the launch of Official Trump (TRUMP), the meme coin launchpad Pump.fun has experienced a plunge in weekly usage metrics, including volume, token creation, and active wallets.

Meanwhile, total sales volume in the non-fungible token (NFT) market declined by 12.4%, while the stablecoin market cap rose by 4.4%.