The world of digital assets continues to evolve at a rapid pace, reshaping financial markets and redefining how investors think about value, risk, and opportunity. Every week, Crypto Mondays by Coinbase Asset Management offers a deep dive into the most pressing themes driving the crypto ecosystem. Led by Chief Investment Officer Marcel Kasumovich and President Sebastian Bea, OLY, this series provides timely insights on macroeconomic trends, regulatory developments, and asset performance across the blockchain landscape.
In this edition, we explore three critical dimensions shaping the current market environment: the dominance of macro forces over micro developments, growing U.S. policy support for digital assets, and the ongoing performance gap between Bitcoin and altcoins.
Macro vs. Micro: Why Big Picture Trends Still Rule
Over recent months, macroeconomic factors have remained the primary drivers of cryptocurrency market movements. Inflation data, interest rate expectations, and Federal Reserve policy signals continue to exert more influence than project-specific innovations or technological upgrades.
Despite strong fundamentals in certain blockchain ecosystems—such as rising on-chain activity, increasing protocol revenue, and expanding developer engagement—the broader market remains highly sensitive to external economic indicators. For instance, U.S. employment reports and CPI releases have repeatedly triggered sharp swings in Bitcoin and Ethereum prices.
👉 Discover how global macro shifts are creating new opportunities in digital assets today.
However, a potential inflection point may be on the horizon. The April 2 trade announcements could mark a turning point where micro-level developments begin to regain prominence. These might include major protocol upgrades, institutional adoption milestones, or breakthrough use cases in decentralized finance (DeFi) and real-world asset tokenization.
As macro volatility potentially stabilizes later in 2025, investors should prepare for a resurgence of bottom-up analysis—where project fundamentals, revenue models, and network effects play a larger role in valuation.
U.S. Policy Support Grows: When Will Markets Catch Up?
Regulatory clarity has long been a bottleneck for mainstream crypto adoption. But recent developments suggest a meaningful shift in the U.S. policy landscape.
Agencies such as the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC) have shown signs of evolving their stance toward digital assets. While enforcement actions continue against non-compliant entities, there's also growing recognition of blockchain technology’s potential benefits for financial infrastructure.
Congress has also seen increased bipartisan support for pro-crypto legislation. Proposals aimed at clarifying custody rules, defining digital asset classifications, and supporting innovation hubs are gaining traction. These efforts reflect a broader understanding that leadership in blockchain technology is strategically important for U.S. competitiveness.
Yet, despite these positive signals, market sentiment has not fully priced in this progress. One reason may be lingering skepticism due to past regulatory uncertainty. Another is the slow pace of legislative implementation.
Still, sustained policy momentum could eventually translate into stronger investor confidence—and potentially trigger capital inflows into compliant crypto ventures, regulated exchanges, and on-chain financial products.
👉 Learn how evolving regulations are opening doors for smarter crypto investing strategies.
Bitcoin vs. Altcoins: Can the Underdogs Close the Gap?
Bitcoin remains the undisputed leader in terms of market capitalization, liquidity, and investor trust. It continues to act as a benchmark for the entire crypto market—often referred to as "digital gold" due to its scarcity and store-of-value characteristics.
But what about altcoins?
While many alternative cryptocurrencies have delivered outsized returns during previous bull cycles, they’ve lagged significantly in 2025 so far. This underperformance raises an important question: How can altcoins prove their long-term value and regain investor interest?
Two key factors will determine their ability to catch up:
1. Ethereum’s Revenue Growth
As the leading smart contract platform, Ethereum plays a pivotal role in the altcoin ecosystem. Its ability to generate consistent fee revenue through transaction processing and network usage serves as a health indicator for DeFi, NFTs, and Layer-2 solutions.
Sustained growth in ETH’s protocol revenue—driven by rising gas fees during periods of high demand—signals robust economic activity on the network. This, in turn, strengthens investor confidence in Ethereum-based tokens and decentralized applications.
2. Real-World Use Cases for Layer-2 Networks
Scalability has been one of blockchain’s biggest challenges. Layer-2 solutions like Arbitrum, Optimism, and zkSync aim to solve this by enabling faster, cheaper transactions while maintaining Ethereum’s security.
But beyond technical efficiency, what matters most is real-world adoption. Are businesses using Layer-2 networks for payments? Are developers building consumer-facing apps with meaningful utility? Are users migrating from traditional platforms?
When Layer-2 ecosystems demonstrate tangible use cases—such as cross-border remittances, supply chain tracking, or tokenized assets—they create value that extends beyond speculation. This kind of fundamental progress is essential for altcoins to justify higher valuations.
Frequently Asked Questions
Q: Why is macro still dominating crypto markets?
A: Cryptocurrencies are increasingly integrated into global financial systems. As a result, they respond strongly to macro indicators like interest rates, inflation, and liquidity conditions—similar to tech stocks or risk assets.
Q: Will clearer U.S. regulations boost crypto prices?
A: Yes. Regulatory clarity reduces uncertainty, encourages institutional participation, and enables product innovation—three key ingredients for sustainable price appreciation.
Q: Is it too late to invest in altcoins?
A: Not necessarily. While Bitcoin leads in maturity and adoption, many altcoins offer exposure to emerging trends like decentralized identity, AI-blockchain integration, and tokenized real-world assets.
Q: How do I assess whether an altcoin has real value?
A: Look at on-chain metrics (e.g., active addresses, transaction volume), revenue generation (especially for protocols), developer activity, and actual usage—not just social media hype.
Q: Are Layer-2 networks safe to use?
A: Most major Layer-2s are built with strong security models anchored to Ethereum. However, users should always verify withdrawal mechanisms and audit statuses before depositing funds.
Final Thoughts: Staying Informed in a Changing Landscape
The crypto market stands at a crossroads. Macro forces still dominate headlines, but beneath the surface, foundational progress is accelerating—from policy reforms to technological innovation.
Investors who stay informed and focus on long-term value drivers—not just short-term price movements—are better positioned to navigate volatility and capture opportunity.
Whether you're tracking Bitcoin's dominance, evaluating altcoin ecosystems, or watching Washington for regulatory clues, one thing is clear: the future of finance is being rewritten on-chain.
👉 Stay ahead of the curve with actionable insights from the evolving world of digital assets.
Disclaimer: The views expressed in this article are based solely on public commentary by Marcel Kasumovich and Sebastian Bea and do not constitute investment advice. This content is for informational purposes only and should not be relied upon as legal, tax, or financial guidance. Market conditions change rapidly; always conduct your own research before making investment decisions.