The recent collapse of three major U.S. banks—Silvergate Capital, Silicon Valley Bank, and Signature Bank—has sent shockwaves across the financial world. While concerns linger about the digital asset industry’s access to traditional finance, the crypto market has responded with resilience. Despite initial volatility, investor confidence is rebounding, and key cryptocurrencies are making strong gains.
As traditional banking systems falter, Bitcoin and Ethereum have demonstrated remarkable stability. Cathie Wood of Ark Invest highlighted this contrast, noting that while bank runs paralyzed parts of the U.S. financial system, crypto networks continued operating without interruption. This reliability is reinforcing the narrative that digital assets can serve as viable alternatives or complements during times of economic uncertainty.
Meanwhile, turmoil at Credit Suisse has further fueled market movements. Investors are flocking to safe-haven assets like gold and sovereign bonds. The possibility of U.S. interest rate cuts later in 2025—driven by efforts to stabilize the economy—is also gaining traction. Such a shift could redirect capital toward riskier but high-growth assets, including cryptocurrencies, potentially attracting institutional investors back into the space.
👉 Discover how market shifts are creating new crypto opportunities in 2025.
Crypto Market Rebounds After Banking Turmoil
Initial panic following the bank failures caused a brief dip in crypto prices. However, the market quickly recovered, now hovering near a total market cap of $1.2 trillion. Sentiment has been buoyed by regulatory actions, including federal assurances to protect all depositors at Silicon Valley Bank and inject liquidity into struggling institutions.
One of the biggest beneficiaries has been Bitcoin, which surged 32% over the past week and is approaching $27,000. Year-to-date, BTC is up 58%, though it remains about 62% below its all-time high. Its performance underscores growing confidence in crypto as a hedge against traditional financial instability.
Ethereum has also held steady, reflecting broader network strength. Meanwhile, Coinbase, the largest U.S.-based crypto exchange, saw its Nasdaq-listed shares jump 30% since last Friday—from $53.44 to nearly $70—signaling renewed trust in regulated crypto platforms.
The broader market is aligning with gains in equities and precious metals, supported by increased liquidity and stabilizing macroeconomic signals.
Top Crypto Gainers of the Week
Conflux (CFX)
Leading this week’s rally is Conflux (CFX), with over 90% weekly gains and a staggering 1,310% increase year-to-date. With a market cap of $666 million and 24-hour trading volume exceeding $710 million, CFX is capturing significant attention.
Often referred to as “China’s MATIC,” Conflux stands out as the only blockchain in China operating within legal compliance. It leverages a unique Tree-Graph consensus mechanism for high scalability and throughput, making it ideal for enterprise adoption.
Recent developments include a strategic partnership with Little Red Book (a social media platform with 200 million users) and China Telecom to pilot a Blockchain SIM (BSIM) card service in Hong Kong. This integration aims to enhance digital identity and secure transactions using blockchain technology.
Conflux is also driving NFT adoption in China through Taopai, one of the first Web3 marketplaces on its network, which already boasts 1 million users and collaborations with major Chinese brands.
This week, KuCoin Ventures led a $10 million funding round for CNHC, a stablecoin pegged 1:1 to the offshore yuan and issued on both Ethereum and Conflux. According to Fan Long, co-founder of Conflux, CNHC bridges traditional finance and Web3—especially valuable amid tightening U.S. crypto regulations.
👉 See how emerging blockchains are reshaping global finance in 2025.
Stacks (STX)
Another standout performer is Stacks (STX), up 88% this week and over 400% YTD. With a $1.5 billion market cap and $350 million in daily trading volume, STX is regaining momentum after a period of decline linked to banking sector fears and fading Ordinals NFT hype.
Stacks is a Layer-1 blockchain designed to bring smart contracts and decentralized applications (dApps) to Bitcoin. Using the Clarity programming language, developers can build secure, predictable dApps directly on the Bitcoin network.
The project is currently advancing its Nakamoto Release, which will introduce sBTC—a decentralized Bitcoin-backed asset. This upgrade aims to unlock three key capabilities: enabling a native Bitcoin economy, allowing developers to code on Bitcoin, and improving network speed and scalability.
These innovations position Stacks as a critical player in expanding Bitcoin’s utility beyond simple transactions.
Image Generation AI (IMGAI)
One of the most explosive movers is Image Generation AI (IMGAI), surging 120% in just seven days. Trading at $0.0187 with $290K in daily volume, IMGAI is gaining traction as a crypto-native AI project focused on consumer applications.
Its flagship product, Nai, is an AI-powered text-to-image generator that lets users create artwork using natural language prompts. The platform features a user-friendly interface and multiple custom image models.
Upcoming plans include using the IMGAI token to unlock premium features, mint AI-generated art as NFTs, and decentralize governance. The team also intends to launch Premium subscriptions, paid advertising, and custom tools for enterprise partners—diversifying revenue streams in the competitive AI space.
Top Crypto Losers of the Week
Despite broad market gains, some assets faced significant setbacks.
Maker (MKR)
Among the top 100 cryptos, Maker (MKR) stands out as a major decliner, down nearly 10% this week despite being up 40% YTD. Currently trading at $728.47 with a $655 million market cap, MKR’s drop follows MakerDAO’s controversial decision to increase its U.S. Treasury bond holdings from $500 million to $1.25 billion—a 150% rise.
This move aims to strengthen the protocol’s real-world asset (RWA) reserves after DAI briefly lost its $1 peg during recent market stress. A separate proposal approved last week raised Maker’s debt ceiling by $750 million to improve liquidity and capitalize on favorable yields.
While these steps aim to ensure long-term stability, short-term sentiment remains cautious.
Terra Luna Classic (LUNC)
Terra Luna Classic (LUNC) continues to struggle, trading at $0.00013 with a $766.4 million market cap. Though it shows minor fluctuations, LUNC remains down nearly 100% from its peak.
The project’s woes persist due to ongoing legal actions against Do Kwon, the fugitive founder of Terraform Labs. The U.S. Department of Justice has joined the SEC in investigating the collapse of TerraUSD (UST), accusing Kwon of orchestrating a multi-billion-dollar fraud.
Authorities are also probing Chai, the blockchain Kwon falsely claimed processed millions of transactions. If convicted, Kwon could face criminal charges and imprisonment—further dimming LUNC’s recovery prospects.
Euler (EUL)
The biggest loser this week is Euler (EUL), plunging over 71% after a devastating hack on March 14th—the sixth-largest in DeFi history. Approximately $200 million was stolen, including 34.4 million USDC, 8.89 million DAI, 85,690 stETH, and 849 WBTC.
According to PeckShield, attackers exploited flash loans to manipulate collateral deposits and trigger self-liquidations, draining funds from the protocol’s reserves.
Euler Labs is collaborating with Chainalysis to trace and recover assets. A controversial "escape hatch" was offered—allowing the hacker to return 90% of funds without prosecution—but trust in recovery remains low. At least 14 connected protocols were affected.
EUL now trades at $1.86—down 85.5% from its all-time high—and hit a new low of $1.60 earlier this week.
Frequently Asked Questions
Q: Why did Bitcoin rally after the bank failures?
A: Bitcoin is increasingly viewed as a hedge against traditional financial instability. As trust in banks wavered, investors turned to decentralized assets perceived as more resilient.
Q: Is Conflux legal in China?
A: Yes—Conflux is the only blockchain in China operating under government compliance guidelines, making it uniquely positioned for domestic adoption.
Q: What caused the Euler hack?
A: Attackers used flash loans to manipulate lending logic within Euler Protocol’s system, triggering unauthorized liquidations and fund withdrawals.
Q: Can MakerDAO stabilize DAI after recent volatility?
A: By increasing exposure to U.S. Treasuries and RWAs, MakerDAO aims to strengthen DAI’s backing and restore confidence in its peg.
Q: Will interest rate cuts boost crypto markets?
A: Lower rates typically encourage investment in risk assets like crypto, potentially drawing institutional capital back into digital assets.
Q: Is Stacks building on Bitcoin safe?
A: Stacks uses Clarity—a secure language designed for predictable smart contracts—reducing vulnerabilities while extending Bitcoin’s functionality.
The crypto landscape remains dynamic and highly sensitive to macroeconomic shifts. While current trends favor growth, volatility persists. Always conduct thorough research and invest responsibly—only allocating what you can afford to lose.
👉 Stay ahead with real-time insights on top-performing cryptos this week.