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Weekly crypto update (Dec 29, 2025–Jan 4, 2026): market cap reclaims $3T, BTC breaks $90K, altcoins surge with over $80B added to Alts market
Author: Chirag Sharma
The week of December 29, 2025 to January 4, 2026 marked a clear transition from year-end lethargy into early New Year momentum. After closing 2025 in oversold conditions and thin holiday liquidity, the crypto market staged a cautious but constructive recovery. Total crypto market capitalization rose by roughly $115–130 billion, climbing from around $2.9 trillion to above $3 trillion by the first week of January. This rebound aligned with the classic January Effect, where assets recover following tax-loss harvesting and portfolio resets. While liquidity remained relatively light, sentiment improved from neutral to mildly bullish, supported by institutional inflows, regulatory clarity, and renewed interest in selective altcoin narratives.Let us dive into top gainers, losers and reasons in this weekly crypto update.
Bitcoin (BTC) led the market’s recovery. BTC started the week near $88,000, consolidated through year-end, and pushed above $90,000 by January 2–3, closing the week around $90,100. This represented a ~2.4% weekly gain, supported by spot ETF inflows and signs of whale accumulation. BTC dominance hovered near 59%, reinforcing its role as the market’s macro anchor.
Ethereum (ETH) followed with relative strength. ETH held the $3,000 level early in the week and climbed toward $3,130, gaining approximately 4–5%. Optimism around Layer 2 scaling, real-world asset tokenization, and rising active addresses offset still-muted network fees. ETH continued to attract rotational capital as investors positioned for 2026 narratives.
Solana (SOL) posted steady gains of roughly 4–5%, aided by renewed RWA interest and improved network stability. Binance Coin (BNB) outperformed modestly following fee reductions on BNB Chain, while XRP stood out among majors with an ~11% surge, driven by low circulating supply, RLUSD growth, and rising institutional attention.
The recovery broadened beyond majors. Rotational flows moved into high-beta altcoins, memecoins, and fundamentally improving protocols. The top five assets added an estimated $80–100 billion in combined market cap, contributing meaningfully to the overall expansion.
Stablecoins played a critical role, with total issuance surpassing $300 billion, reinforcing liquidity foundations across DeFi. Meanwhile, Real World Assets (RWA) TVL climbed to ~$17 billion, marking a 210% increase in 2025 and signaling a structural shift toward tokenized Treasuries and credit products.
The first week of January suggests a market transitioning from reset to rebuild. While liquidity remains lighter than peak cycles, the return of inflows, regulatory clarity, and narrative alignment point toward improving conditions.
Key resistance levels across BTC and ETH will determine whether this move extends or consolidates. For now, the market appears to be forming a base rather than chasing excess.
Crypto enters 2026 on firmer footing than it ended 2025. The panic has faded, capital is rotating back in, and the groundwork for the next phase is being laid. Volatility will persist, but directionally, the market looks more prepared than pressured.
