Weekly Web3 Digest: Trendlines & Headlines

April 21, 2025

Each week, the Magnet team brings you a concise breakdown of the biggest shifts in crypto: from macro catalysts to market sentiment and narrative momentum. Q1 2025 fades into the rearview mirror — a quarter marked by heightened volatility, rapid corrections, and shifting sentiment. Now, just two weeks after President Trump’s tariff bombshell reignited U.S.-China trade tensions and sent shockwaves through global markets, it’s time to take stock of where crypto stands — and what just happened.

🌐 Crypto Landscape: Sideways Action, No Clear Trend

This week, crypto markets moved mostly sideways. The total market cap has recovered nearly 15% from April 7 lows, but remains down 40% from its December 2024 peak. Meanwhile, Bitcoin dominance climbed nearly 4% month-to-date, reflecting renewed institutional and retail interest in BTC as it straddles its dual role: part risk asset, part digital gold.

💣 $5B+ Lost in Hours: Mantra’s $OM Token Collapse

On April 13, $OM t plummeted over 90% within hours — dropping from $6 to below $0.50 and wiping out more than $5 billion in market value. Over 43 million OM tokens were transferred to exchanges shortly before the fall, some allegedly tied to large investors - the crash triggered panic across crypto Twitter. The Mantra team denied any insider selling, claimed that their tokens remain locked, and pledged to burn team allocations to help restore community trust.

Beyond $OM itself, the incident revealed critical industry-wide weaknesses: weekend liquidity fragility, token concentration risks, opaque tokenomics, and overreliance on CEXs. A post-mortem is underway — but the signal is clear: this wasn’t just a project failure. It was a We3b space warning.

🛒 Bitcoin Whales Go All In

According to Glassnode, Bitcoin whales are now absorbing over 300% of newly mined BTC, aggressively outpacing issuance. For every BTC mined, whales are buying three — and then some. Simultaneously, exchanges are seeing historic outflows, with annualized absorption rates dropping below -200%, suggesting a strong pivot toward self-custody and long-term storage.

This is the fastest pace of whale accumulation ever recorded, bolstered by spot ETF flows and growing conviction from institutional players.

🛑 Q1 Recap: Still Stuck on AI and Memes

According to CoinGecko, Q1 2025 was once again dominated by familiar narratives, with little evidence of fresh themes gaining meaningful traction.

- AI tokens captured 35.7% of total investor interest

- Memecoins followed with 27.1%

Out of the top 20 tracked narratives, six were memecoin-related, while five focused on AI and its surrounding infrastructure — underscoring how concentrated investor attention remains.

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Despite visible signs of fatigue, capital continues to circulate in these well-worn sectors. Emerging categories like RWA and DePIN are beginning to gain ground but still lag behind in mindshare and momentum. With so much uncertainty in the air, investors are sticking to what they know. And without a clear catalyst or fresh story to follow, the market feels like it’s just waiting — stuck in pause mode until something new sparks movement.

☃️ Is Winter Coming? Market Signals Say Maybe

As of mid-April, the total crypto market cap (excluding BTC) sits at $1 trillion — down 41% from December highs and 17% lower year-over-year. The market now trades below nearly all levels seen between August 2021 and April 2022, often considered the heart of the last crypto winter.

But this is more than just a correction. Shrinking liquidity, weaker risk appetite, and ongoing macro instability are painting a cautious picture. Coinbase analysts suggest we may see a bottom in Q2 2025, with a potential recovery in Q3, if macro conditions allow.👀 Stay tuned for next week’s Web3 Digest from the Magnet team! ! The landscape is always shifting, and we’re here to keep you in the loop. Stay ahead of the curve and be prepared for what’s next in the world of Web3.