Despite a notably optimistic outlook from the U.S. Securities and Exchange Commission (SEC), the cryptocurrency market experienced a significant downturn this Friday. Leading digital assets, including Pump.fun, Bitcoin, and Sui, registered sharp declines, pushing the overall crypto market capitalization down by 7% to $3,84 billones. This paradoxical reaction suggests broader macroeconomic pressures are currently outweighing regulatory reassurances.
Pump.fun led the retreat, shedding 17,5% of its value in the last 24 hours, while Bitcoin, the market’s benchmark cryptocurrency, saw a 2,5% decline. Sui also faced a substantial drop of 6,9%. The widespread correction impacted a majority of the top 100 tokens, with meme coins being particularly hard hit, though established “blue-chip” DeFi tokens demonstrated more resilience.
SEC Chair Paul Atkins had recently painted a bullish picture for crypto regulation, promising a “golden age” for the sector under the current administration, further bolstered by the announcement of “Project Crypto.” Historically, such clarity from regulators tends to ignite positive market sentiment, acting as a catalyst for price appreciation. However, the market’s current trajectory indicates a prevailing bearish mood among participants.
Analysts point to external economic factors as potential drivers for this unexpected market behavior. The crypto slump coincided with a downturn in U.S. equities, triggered by a weaker-than-expected jobs report indicating dwindling hiring, alongside the implementation of new, higher tariff rates by the Trump administration. These broader economic anxieties appear to have overshadowed the positive regulatory news.
Amidst this market correction, a notable trend in the decentralized finance (DeFi) sector stands out. The total value locked (TVL) in DeFi protocols has rebounded significantly, now exceeding $136 billones, according to DeFiLlama. This figure closely mirrors the $138 billones recorded in May 2022, just prior to the collapse of the FTX exchange. This recovery has fueled discussions about the potential return of a “DeFi summer,” a period characterized by rapid innovation and growth within the decentralized finance ecosystem.
While the return to pre-FTX TVL levels is a positive sign for the long-term health of decentralized finance, the immediate question remains whether this resilience can be sustained in the latter half of 2025 given the current broader market headwinds. The coming months will be critical in determining if the crypto market can find its footing and align with the SEC’s optimistic vision, or if economic uncertainties will continue to dictate its path.
