The crypto market has entered a critical phase of consolidation, with total market capitalization (TOTAL) stuck within a tight range for over a month.
According to analyst DaanCrypto, both Bitcoin (BTC) and Ethereum (ETH) have mirrored this behavior, holding steady near the same price regions throughout the period. This extended compression typically sets the stage for a significant breakout, as positions accumulate on both sides of the market.
A chart shared by DaanCrypto shows $TOTAL repeatedly rejecting around the $3.33 trillion mark while bouncing off the $3.19 trillion support zone. The repeated testing of these boundaries reflects a growing tension in the market, making a decisive move increasingly likely in the near term.
DeFi Sector Sees $60B Surge Amid Institutional Inflows
While the broader market consolidates, the decentralized finance (DeFi) ecosystem is quietly undergoing rapid expansion. According to data from CoinDesk, crypto lending platforms now collectively manage nearly $60 billion in assets. This growth marks a significant milestone, fueled by increased institutional participation and rising demand for tokenized real-world assets (RWAs).
Leading protocols such as Aave, Maker, Morpho, and Spark are experiencing steady increases in deposits. The lending chart shows a sharp climb in activity, particularly in the first half of 2025, highlighting the renewed appetite for DeFi yield opportunities.
Market Compression Meets Structural Growth
The juxtaposition of a compressed macro market and booming DeFi sector suggests a potentially bullish setup. As @DaanCrypto notes, historical patterns show that when total crypto market cap consolidates tightly, a breakout often follows—frequently aligning with momentum in key subsectors like DeFi.
With $60 billion now parked in lending platforms and total market cap testing a well-defined range, traders are watching closely. A break above $3.33T or below $3.19T could dictate the next major trend direction for the broader crypto space.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/crypto-market-awaits-breakout-as-total-cap-compresses-near-key-levels/