The crypto market demonstrated modest growth of 1.99% in the first half of 2025, following an explosive rise of 96.2% in 2024. This moderate performance was attributed to a correction in the first quarter, which saw an 18.61% decline, followed by a recovery in the second quarter with a 25.32% increase. The global economy during this period was marked by a “great divergence,” with key players adopting different monetary policies, creating a volatile environment for crypto assets.
Bitcoin, the first cryptocurrency, showed resilience amidst global volatility, with a year-to-date return of +13%. This performance outpaced most traditional assets, and Bitcoin’s market capitalization held above $2 trillion for most of the half year, making it the sixth-largest asset globally, surpassing Google and Meta. Bitcoin’s dominance in the market rose to 65.1% in June, a high point in over four years. The report highlighted that capital is flowing into Bitcoin faster than the rest of the crypto market, reflecting accumulation by long-term investors and growing integration with traditional finance.
Spot Bitcoin ETFs became a key driver, with total net inflows exceeding $13.7 billion since the beginning of the year. BlackRock’s IBIT dominated, absorbing the majority of new investments, while Grayscale’s GBTC continued to lose assets due to high fees. More than 140 public companies now store 848,100 BTC, with Strategy maintaining its leadership with over 70.4% of total reserves. The report noted that historical highs have revived corporate interest in Bitcoin, viewing it as insurance and a tool to enhance capital efficiency in an environment of inflationary pressure and geopolitical tensions.
The regulatory environment for cryptocurrencies underwent significant changes. The U.S. passed the GENIUS Act, establishing a federal framework for regulating stablecoins. The EU fully implemented MiCA regulation, while Asia adopted mixed approaches, with Hong Kong positioning itself as an innovation hub and Singapore moving towards stricter regulation. The report also highlighted the stablecoin market, which reached a market capitalization of $250 billion, reflecting renewed confidence and accelerating mass adoption. Tether (USDT) maintained its dominance, while USDC saw significant growth, becoming the fastest-growing stablecoin in the first half of the year.
The DeFi sector remained stable in terms of Total Value Locked (TVL), but recorded an increase in user activity. The number of monthly active addresses in decentralized protocols exceeded 340 million, a 240% year-on-year increase. This rapid growth of users in a cooling altcoin market indicates that DeFi is moving beyond a speculative bubble. Ethereum solidified its role as the network for institutional capital, while Solana became a leader for retail activity due to its high speed and low fees. BNB Chain attracted users through PancakeSwap, capturing a significant share of trading volume on decentralized exchanges.
Looking ahead to the second half of the year, Binance Research highlighted ten key themes, including a potential reversal by the Fed, a shift in U.S. policy towards legislation to increase institutional adoption, and the accelerating integration of cryptocurrencies into traditional finance. The report also noted the growing use of stablecoins in payment services, the evolution of real-world assets (RWAs) into secondary markets, and the development of Bitcoin as collateral at scale. Additionally, the report highlighted the progress in rollup development, the integration of AI in cryptocurrencies, and the potential of prediction markets as a global layer of information about upcoming events.
