Ethereum, Binance Coin, and Dogecoin Lead Crypto Rally as Market Cap Reclaims $4 Trillion

The global cryptocurrency market surged past the $4 trillion mark on Monday, marking a strong rebound from last week’s flash crash that temporarily wiped out nearly $500 billion in digital asset value. Ethereum (ETH), Binance Coin (BNB), and Dogecoin (DOGE) led the recovery, supported by improved risk sentiment, easing derivatives pressure, and renewed optimism around institutional inflows into the crypto sector.

Market Reaction and Price Performance

Ethereum climbed 6.4% over the past 24 hours to trade near $4,320, while BNB advanced 5.9% to $675, and Dogecoin gained 7.1%, approaching the $0.20 level. Bitcoin (BTC), meanwhile, rose modestly to around $108,700, consolidating after last week’s volatile swings. According to CoinMarketCap, total market capitalization rose 4.8% to $4.02 trillion, with trading volumes up 15% compared to the weekend average.

The rebound reflects stabilization in the derivatives markets following a cascade of long liquidations that drove the earlier sell-off. Open interest across major exchanges has dropped by nearly 20% since Friday, suggesting traders are re-entering with lower leverage. Funding rates have normalized, indicating a more balanced sentiment among futures participants. Analysts point to this deleveraging as a healthy reset that could provide a stronger base for sustained recovery if macro conditions remain supportive.

Macro and Regulatory Backdrop

Global risk appetite improved slightly this week as investors digested mixed inflation data from the U.S. and expectations of sustained monetary easing by the Federal Reserve. The dollar index eased from recent highs, offering a tailwind to crypto assets priced in USD. Meanwhile, Asian equity markets also stabilized after recent turbulence in tech shares, helping boost sentiment toward digital assets with high beta to global risk trends.

On the regulatory front, the crypto sector continues to navigate shifting policy signals. The European Union’s Markets in Crypto-Assets (MiCA) framework entered its implementation phase this month, prompting exchanges and stablecoin issuers to adjust compliance structures. In the U.S., market participants remain focused on the SEC’s pending decisions on spot Ethereum ETF applications, which could serve as a major catalyst for institutional participation if approved before year-end.

Investor Sentiment and Market Structure

On-chain data indicates that long-term holders and whale addresses have increased their accumulation during the recent dip, signaling confidence in the medium-term outlook. According to Glassnode, Ethereum exchange balances dropped to a two-year low, reflecting ongoing staking activity and reduced sell pressure. Dogecoin’s surge, on the other hand, was partially fueled by social sentiment recovery and speculation on its integration into payment channels associated with X (formerly Twitter).

Institutional flows are also showing signs of recovery. Digital asset investment products recorded $95 million in net inflows last week, with Ethereum and multi-asset funds accounting for the majority, according to CoinShares data. Analysts note that capital rotation from meme tokens and smaller altcoins toward higher-cap projects like ETH and BNB suggests a more cautious yet constructive risk posture among professional investors.

Looking ahead, the sustainability of this recovery will depend on broader macro conditions and the pace of institutional engagement. A successful retest of key resistance levels — $4,500 for ETH and $700 for BNB — could reinforce bullish sentiment, while renewed volatility in traditional markets or hawkish policy surprises might cap upside momentum. For now, the crypto market’s ability to reclaim and hold the $4 trillion threshold signals renewed confidence after one of the sharpest short-term corrections of the year.