Examining Crypto Market Cap Excluding USDt, USDC & BTC
The Daily Crypto Update for Institutional Investors
The aggregate crypto market cap, excluding excluding BTC, USDt & USDC, has appreciated by ~20% since early February - We examine the datapoint in this AM’s note
The ex-BTC, ex-USDt & USDC market cap is down ~50% since achieving a record high in December 2024: This limited version of the crypto market cap is currently USD 855.63B and achieved a record high of USD 1.71T at the end of 2024. The record high was achieved on the back of President Trump’s election victory. We have previously remarked that risk appetite in crypto did not recover, to-date, since December 2024.
BTC has outperformed the limited crypto market cap: On February 6, which marked a local bottom in crypto, BTC fell to just above USD 60,000; the ex-BTC, ex-USDt & USDC market cap dropped to USD 715.64B. Since, BTC and the limited market cap have seen ~26% and ~20% recoveries, respectively. BTC is now down ~40% from its October 2025 high, compared to ~50% for the limited market cap.
The limited crypto market cap remains characterized by an abundance of questionable assets: At the moment, CoinMarketCap.com tracks a total of 49.64M digital assets. This metric has significantly expanded since late 2024. In September 2024, the site tracked 1.86M digital assets, representing an enormous jump to-date. Among these are assets with highly questionable market caps. For instance, at the moment, ~4% of the limited market cap is composed of the USD 34.69B memecoin sub-sector. These include the USD 16.73B memecoin DOGE, currently the 9th largest cryptocurrency by market cap. BCH, for instance, has a market cap of USD 8.94B and is the 12th largest digital asset. BCH was pitched as a payments-focused cryptocurrency and split from Bitcoin in 2017 to prioritize faster, cheaper on-chain transactions through larger block sizes. That thesis has since been significantly challenged by the rise of stablecoins and the development of BTC layer-2 networks such as Lightning. A 2024 report from Forbes titled ‘Rise Of Crypto’s Billion Dollar Zombies,’ highlighted 50 networks with market caps in excess of USD 1B ‘despite many having few users.’ These networks include Cardano (ADA) which has a market cap of USD 8.88B but has failed to participate in virtually every recent crypto bull narrative: the network hosts a paltry USD 48.86M in stablecoins and 131.28M in DeFi total value locked (TVL). Cardano hosts negligible real-world asset tokenization as well.
The Kelp DAO hack highlights the complexity of digital asset & blockchain adoption: The crypto space has seen a spate of security incidents recently. April alone saw USD ~600M lost in the Drift Protocol and Kelp DAO Hacks, among other security incidents. These incidents underscore that blockchain and digital asset adoption by incumbent financial institutions is highly complex and involves novel security challenges.
CRYPTO HEADLINES
Circle Ventures acquired AAVE tokens in support of DeFi United, a multi-entity recovery initiative responding to the Kelp DAO Hack. According to media reports, the hack resulted in over USD 177M bad debt on Aave. Consensys and Joseph Lubin contributed up to 30,000 ETH, as other organizations commit funds toward restoring collateral. Yesterday, Aave published ‘DeFi United’s Restoration of rsETH Backing: Technical Implementation Plan.’ The plan ‘involves converting the committed ETH into rsETH in tranches, which will then be transferred to the affected lockbox contract, allowing the bridge to securely resume full operation.’- link - @CryptoBriefing
Core Scientific (NASDAQ: CORZ) is converting its Pecos, Texas site into a high-density AI data center with up to 1.5GW capacity, repurposing 300MW from BTC mining. Approximately 1GW is expected to be available for leasing, with initial capacity targeted for early 2027. The company plans to fund expansion through debt offerings. - link - @Cointelegraph
BlackRock (NYSE: BLK) is collaborating with OKX and Standard Chartered (LON: STAN) to allow its USD 2.5B money market fund to be used as margin collateral on OKX. The fund’s tokens are held by Standard Chartered and remain interest-bearing. Initially, access is limited to Middle East investors. - link - @Bloomberg
Block (NYSE: SQ) introduced proof-of-reserves for its BTC treasury and products, enabling public on-chain verification of its 8,883 BTC holdings. Block acquired 114 BTC in Q1 2026. - link - @Cointelegraph
Galaxy Digital (NASDAQ: GLXY) recorded a net loss of USD 216M in Q1 2026, citing falling digital asset prices but reporting revenue of USD 10B, above consensus. The firm is increasing investments in AI-related data centers, with 28% of equity capital allocated, and expects adjusted gross profit soon. - link - @Bloomberg
The Blockchain Association has expressed support for the US Federal Reserve’s proposal to formally remove ‘reputation risk’ from its supervision of banks. The association urged alignment with similar rules recently finalized by the OCC and FDIC. - link - @Cointelegraph
Israel’s Capital Market Authority approved Bits of Gold to issue the first stablecoin pegged to the shekel after a two-year evaluation. The BILS token was developed with the Solana network and Fireblocks, with auditing by EY. The shekel, gaining over 20% against the dollar in the past year, moves on-chain. - link - @CoinDesk
Emerging UK regulation on stablecoins is described as potentially increasing public trust, but some market participants claim its cautious approach could limit industry growth. Varun Paul, a former Bank of England official, said stablecoins offer cost and access benefits, but noted the UK’s proposed rules may deter innovation compared to other countries. - link - @FT
TOP ARTICLES
Barron’s: Bitcoin, XRP Prices Fall. What’s Holding Cryptos Back.
Politico: Clash over Trump family businesses entangles Senate crypto bill
OPEN-SOURCE RESEARCH / LONG-READ OF THE DAY
DeFi Rescue Hurts Anti-Wall Street Pitch After $10 Billion Run, Bloomberg, April 27, 2026
Bloomberg covers how ‘decentralized finance is in the midst of the largest coordinated rescue in its history...’
CRYPTO MULTIMEDIA
Michael Saylor: ‘It’s not complicated. Bitcoin is money’, Bitcoin 2026 Conference, April 27, 2026
Michael Saylor discusses Strategy’s accumilation of BTC and offers a ‘breakdown of STRC and the evolution of digital capital.’
CHART OF THE DAY
Excluding BTC, USDt and USDC, the aggregate crypto market cap reached a record high of USD 1.71T in December 2024.
About FRNT Financial
FRNT is a digital asset investment bank offering capital markets and advisory services to institutional investors participating in or entering the space. The Company aims to bridge the worlds of traditional and web-based finances with a technology forward and compliant operation. Business lines include deliverable trading services, structured derivative products, merchant banking, advisory, consulting, lending origination and principal investments. Headquartered in Toronto, FRNT was co-founded in 2018 by CEO Stéphane Ouellette.