The month of May 2025 represented a turning point for the cryptocurrency market, with an overall growth of 10.3%, continuing the positive trend already started in April.
Despite a context marked by strong volatility, fueled by uncertainty over the trade policies of the United States, the sector has shown remarkable resilience, driven by geopolitical events, corporate innovations, and a renewed institutional interest.
Liquidations and volatility: the role of trade policy in the cryptocurrency market
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The tensions and developments in international trade relations have had a direct impact on the crypto markets. In particular, the trade agreement between United States and United Kingdom triggered liquidations for almost 1 billion dollars in short positions on Bitcoin and Ethereum. This was followed by a further wave of 183 million dollars in liquidations after the suspension of tariffs between United States and European Union.
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These events have highlighted how the cryptocurrency market is sensitive to macroeconomic changes and political decisions, but also how it has become an increasingly relevant indicator of global investors’ confidence.
Bitcoin ETF: record inflows and new market dynamics
One of the undisputed protagonists of the month was the Bitcoin ETF market. In May, the U.S. spot ETFs recorded net inflows of 5.2 billion dollars, the highest figure since November 2024. This boom was fueled by reaching a new all-time high (ATH) for Bitcoin, driven by legislative support for stablecoins both in the United States and Hong Kong.
However, the end of the month saw a trend reversal, with outflows of 962 million dollars in just two days, the most marked decline since February. This phenomenon reflects the growing importance of ETFs in the price discovery process, with the IBIT by BlackRock leading the inflows, while the GBTC by Grayscale experienced outflows of 320 million dollars. This outlines an increasingly competitive market dynamic, where the principle of “winner-takes-all” might prevail.
Corporate adoption: Bitcoin increasingly present in financial statements
The month of May saw a significant expansion of corporate reserves in Bitcoin, which reached 809,100 BTC distributed among 116 publicly traded companies. The new ATH of Bitcoin, around 112,000 dollars, reignited the fear of missing out (FOMO) among companies, which see the cryptocurrency as an opportunity for inflation protection and a strategic asset for their balance sheets.
The increasing regulatory clarity and the accounting changes expected for 2025 are encouraging this trend. Although Bitcoin remains the main asset, some companies are starting to diversify their reserves by including Ethereum (ETH), Solana (SOL) and Ripple (XRP). The pace of future growth will depend on macroeconomic factors, regulatory developments, and bull and bear market cycles.
DeFi in strong expansion, Gaming and Layer 2 in decline
The month also highlighted a structural divergence among the various sectors of the crypto world. Decentralized Finance (DeFi) recorded an impressive growth of 19.0%, even surpassing the performance of Bitcoin (+11.1%). This leap was fueled by new products, yield opportunities, capital rotation, and an increase in Total Value Locked (TVL).
On the contrary, the Gaming sectors and Layer 2 (L2) solutions have shown signs of weakness, with negative returns despite the generally favorable market climate. This suggests a possible shift in investor interest towards more mature and profitable segments, such as DeFi.
Tokenized Real World Assets (RWA): a sector in full explosion
Another rapidly growing trend is that of tokenized real-world assets (RWA), which in the first six months of 2025 saw an increase of 260%, reaching a total valuation of 23 billion dollars. The market is dominated by tokenized private credits and U.S. Treasury debt, which represent 58% and 34% of the total, respectively.
With the advancement of regulation, further expansion of the sector is expected, which could attract a growing number of institutional players and establish itself as a key component of the digital economy.
A look at the future of the cryptocurrency market: between opportunities and uncertainties
The month of May 2025 confirmed that the cryptocurrency market has entered a new phase of maturation. Institutional interest, growing corporate adoption, innovation in financial products, and regulatory evolution are profoundly transforming the crypto landscape.
However, volatility remains a central element, fueled by macroeconomic and geopolitical factors. The challenge for investors will be to navigate between growth opportunities and systemic risks, in a context where cryptocurrencies are taking on an increasingly central role in the global financial markets.
With Bitcoin at all-time highs, Ethereum expanding, and DeFi in full swing, 2025 is shaping up to be a crucial year for the consolidation of cryptocurrencies as a recognized and strategic asset class.
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Source: https://en.cryptonomist.ch/2025/06/17/cryptocurrencies-on-the-rise-may-2025-marks-a-new-chapter-for-bitcoin-ethereum-and-the-global-market/