March proved to be a challenging month for financial markets. The uncertainty surrounding US President Donald Trump’s tariff strategies stirred volatility within Bitcoin and the broader crypto markets, while decentralized finance (DeFi) faced ongoing security apprehensions.
On March 10 and 12, retaliatory tariffs targeting US goods were imposed by China and the European Union, respectively. Despite escalating tensions between the United States and its major trading partners, Bitcoin experienced a brief recovery on March 24, climbing to $88,000 before falling back down to approximately $82,000 at the time of writing.
In the legislative arena, several state governments have proposed bills relating to Bitcoin and cryptocurrencies, including initiatives to establish a Bitcoin reserve and investigate crypto investments for pension funds. This month, in 13 US states, various bills related to cryptocurrency advanced through either voting or committee discussions.
The slowdown in the memecoin market has had severe financial repercussions for Solana. After peaking at a staggering $34 billion in January, trading volumes on Solana’s decentralized exchanges plummeted, with March volumes rarely surpassing $1 billion.
Here’s a numerical summary of March.
### Tariff Policies Lead to 5% Decrease in Bitcoin Value
The initial month of Trump’s presidency witnessed numerous reversals of contentious trade policies, leaving even his political allies bewildered. After a month of delays, tariffs took effect on March 4, imposing 25% on goods from Mexico and Canada, as well as additional tariffs on energy imports and Chinese products. Just a day later, the administration postponed tariffs affecting automakers, followed by further delays on imports from Canada and Mexico on March 6.
The situation intensified when Trump announced a 24% tariff on aluminum and steel on March 12, prompting the US Treasury to suggest negotiable tariff rates per country by March 18.
The fluctuating effects of tariffs impacted Bitcoin and major US stock indexes, with Bitcoin achieving a temporary rise to $85,000 on March 24, nearly recovering to its starting point for the month.
The trade battle has also influenced the Trump family’s crypto investments through a fund known as World Liberty Financial (WLFI), which reported mixed performance in March. Several altcoins within its portfolio, such as Mint and Tron, were trading at or below their values from the beginning of the month.
By the month’s end, both crypto and traditional finance were trending downwards as traders prepared for “Liberation Day” on April 2, a day when Trump pledged to impose equal tariffs on all nations that currently have tariffs affecting US goods.
### Crypto Regulations Passed in Two States
This past March, Utah and Kentucky enacted legislation regulating aspects of cryptocurrency and blockchain technology. These laws define various facets of digital assets, establish zoning protections for cryptocurrency miners, and set guidelines for businesses to accept cryptocurrencies.
Additionally, numerous crypto-related bills progressed in 13 other states during March. Texas, Georgia, and Illinois introduced their own proposals, with Texas being particularly active, proposing three new bills related to creating an oil-backed stablecoin, allowing state investments in cryptocurrencies, and launching a blockchain pilot program.
### Solana Revenue Dips by 99%
Investor confidence has eroded significantly due to several prominent scandals, including one involving Argentinian President Javier Milei, consequently driving many away from the memecoin market.
Much of the trading activity in memecoins has occurred on the Solana network, leading to an alarming 99% decrease in revenue from a peak of $15 million on January 19, now down to just $119,000.
Moreover, March saw a continued decline in the trading volume for decentralized exchanges and active daily addresses. Trading volumes fell dramatically from $3.9 billion on March 2 to $782 million by the end of the month.
### $22 Million Lost to DeFi Hacks as Security Concerns Loom
February marked the largest DeFi theft in history with $1.4 billion stolen by the North Korean-linked Lazarus Group from Bybit. Although March recorded a relatively smaller total of $22 million taken through four hacks, concerns about security remain high.
Continuing the narrative of the Bybit incident, it was reported that hackers successfully funneled “100%” of the stolen funds, primarily using THORChain, according to blockchain security experts.
Amid the ongoing high-profile DeFi hacks, blockchain investigator ZachXBT expressed grave concerns, stating that DeFi is “unbelievably cooked” in terms of security vulnerabilities and lamented the lack of accountability among protocols.
Despite security worries and macroeconomic challenges, the crypto industry continues to progress, holding several international conferences throughout March.
Overall, March was a tumultuous time. Major cryptocurrencies struggled, and Ether saw an 18% decline over the month, while the atmosphere of economic uncertainty was exacerbated by newly implemented tariffs.
April promises further challenges as Trump prepares for mass tariff implementations on April 2, but historical inconsistencies regarding tariff policies suggest the repercussions might not align with expectations.
The upcoming month will also see discussions surrounding US stablecoin legislation, which many in the sector view as a critical development for the growth of crypto in the United States.
Additionally, on April 18, Avraham Eisenberg, who faced charges of fraud linked to the exploit of the Mango Markets DEX, will be sentenced.