The crypto market had earlier extended its rally for the third consecutive quarter in 2025 Q3, the team at CoinGecko noted while adding that the total market capitalization surged another +16.4%, adding about $563.6 billion to reach $4.0 trillion+. According the report from CoinGecko, the quarter marked crypto’s second leg of its so-called recovery, supported by increasing liquidity, renewed institutional inflows, along with a fairly strong rebound in trading activity.
The CoinGecko report also mentioned that the average daily trading volume jumped +43.8% to $155.0 billion, effectively reversing the significant declines experienced in Q1 and Q2.
Meanwhile, stablecoins also surged to new ATHs, with the overall market cap up a considerable +18.3% to $287.6 billion as USDe and USDC captured growing demand. And DeFi or decentralized finance made a strong comeback as total value locked rose +40.2%, “reclaiming market share over other sectors amid the broader price rally.”
CoinGecko also mentioned in the report that Ethereum (ETH) and BNB were standout performers amongst majors, each “reaching fresh all-time highs.”
ETH notably surged +68.5% to close the quarter at $4,215, while BNB surged +57.3% to end at $1,030. On centralized exchanges, “spot trading volumes grew +31.6% QoQ to $5.1 trillion, led by Binance and Bybit.”
CoinGecko’s 2025 Q3 Crypto Industry Report also noted that significant activity was seen in the non-fungible token (NFT) ecosystems, and examined how centralized exchanges (CEX) and decentralized exchanges (DEX) have performed.
While this seems impressive, there was a massive correction as well recently. The largest-ever crypto liquidation event was triggered this month after US President Donald Trump announced a planned 130% tariffs against China. The markets reacted strongly and very negatively with both the crypto and traditional stock markets plunging following the abrupt announcement from the Trump Administration.
Even though Trump has now claimed that we need not “worry” about China and that things will be “okay,” the markets still have not fully recovered. Notably, BTC price dropped this month from its all-time high of $126,000+ achieved on October 6, 2025 to around $104,000 during that massive liquidation event. At the time of writing, the BTC price has recovered somewhat as the leading crypto is trading at over $110,000. Ethereum, BNB, Solana prices have also rebounded somewhat but the recent jolt indicates that crypto markets remain highly leveraged.
Excessive leverage in crypto, in particular, could be extremely dangerous for smaller Altcoins like Dogecoin and Cardano. In fact, DOGE dropped from over $0.20 to below $0.10 within a very short time-frame during the liquidation event and Cardano plunged from around $0.65 to about $0.30 temporarily. These kinds of price fluctuations may further erode investor trust and confidence in digital assets.