Digital asset markets contracted sharply in the first quarter of 2026, with total market value declining 22% to roughly $2.42 trillion. The recent AMINA Bank Q1 Crypto Market Monitor outlines how this pullback happened even as some core adoption metrics signaled new milestones across the sector.
Leverage falls after October reset as trading behavior evolves
Q1 2026 marked a clear transformation in crypto market dynamics following a major deleveraging event in October 2025. This shift reshaped how digital assets are traded, with momentum-fueled rallies replaced by a focus on spot transactions and structured risk management tools.
According to the AMINA Bank analysis, systemic leverage compressed to about 3% in the wake of the October turbulence. Trading volumes climbed to $20.57 trillion for the quarter, led by derivatives activity accounting for $18.63 trillion. However, within the derivatives space, open interest in Bitcoin options overtook perpetual futures, and the demand skewed toward downside protection. This suggests institutions are prioritizing risk control over speculative moves.
Macroeconomic factors added further complexity. With US inflation stable at 2.7% and GDP growth reaching 5.3%, the Federal Reserve held interest rates between 3.50% and 3.75%, effectively ruling out imminent rate cuts. Late February saw renewed geopolitical tensions in the Middle East closing the Strait of Hormuz and driving oil prices above $112 per barrel, contributing to a cautious market mood.
Despite these pressures, Bitcoin prices managed to hold above earlier lows. The asset also absorbed a wave of market anxiety following the publication of Google’s Quantum AI paper, which reignited concerns over quantum computing risks for cryptocurrency security.
AMINA Bank’s report described a pattern where “markets absorb bad news without breaking down,” viewing this as a sign of waning seller activity.
Stablecoins and corporate Bitcoin holdings hit all-time highs
Stablecoins ended Q1 with a landmark $320 billion in aggregate supply, and monthly transfer volumes peaking at $1.8 trillion. Solana processed roughly $650 billion in monthly stablecoin volume, taking the lead among blockchain throughput. Several new specialized chains, such as Plasma, Arc, and Tempo, began development to support stablecoin settlements. Meanwhile, the GENIUS Act framework entered its operational phase, laying out new rules for payment stablecoins in the United States.
Institutional and corporate participation in Bitcoin reached new heights. Holdings in corporate treasuries exceeded 1.13 million BTC, with companies adjusting their strategies from just holding to active portfolio management. Strategy, led by Michael Saylor, added almost 65,000 BTC during the quarter, boosting its reserves to 762,000 BTC. Japan’s Metaplanet expanded to more than 40,000 BTC, while MARA Holdings, a Bitcoin mining and investment firm, sold over 15,000 BTC to optimize its balance sheet. These moves demonstrate how treasury management is now a more nuanced and actively managed process rather than a single-direction bet on price.
Bitcoin dominated around 56% of the total crypto market, underlining its persistent central role despite a volatile backdrop. Flows into Bitcoin exchange-traded products (ETPs) revealed similar shifts: while the quarter overall saw modest net outflows, March showed a reversal, with $1.3 billion in net inflows. Worldwide, ETPs attracted $18.7 billion in new capital during these three months, according to AMINA Bank data.
Decentralized finance also recorded renewed momentum. Total value locked in DeFi platforms reached $92.43 billion, and tokenized real-world assets climbed above $20 billion in capitalization. AI-powered bots executed more than 120 million on-chain transactions. Ethereum, whose price declined by 35% in the quarter, continued to secure over 56% of DeFi’s total value locked, and another major scalability upgrade—Glamsterdam—was outlined to improve transaction capacity.
The quarter’s tech and infrastructure trends highlighted growing selectivity in public markets: BitGo’s shares slipped 44% after its public listing, and Kraken postponed its IPO efforts. By contrast, Circle reported strong revenue gains as dollar-backed USDC circulation grew steadily, suggesting investor attention is focusing on resilient and sustainable models. Circle operates as a key stablecoin issuer, providing tools for global payments and digital asset liquidity.
