The global crypto market has surged past a $3.5 trillion valuation, and the trend shows no sign of slowing.
According to data from analytics firm Sentora, institutional capital is not only boosting Bitcoin demand but also accelerating the adoption of DeFi, stablecoins, and regulatory clarity across the digital asset landscape.
Bitcoin Dominance, but Broadening Ecosystem Growth
Bitcoin remains the anchor of institutional demand, with 69.4% of its 21 million supply held by individual investors. However, ownership by ETFs, businesses, and governments is rising. Funds and ETFs now hold over 1.29 million BTC (6.1%), while government holdings exceed 297,000 BTC (1.4%).
CeFi + DeFi Lending Markets Rebound to $30B
Crypto credit markets are also rebounding. After a deep deleveraging in 2022, the combined CeFi and DeFi lending market reached approximately $30 billion by Q4 2024. DeFi’s share has notably increased as institutional players return to the space.
DeFi TVL Hits $178 Billion
The total value locked (TVL) in DeFi protocols now stands at $178.52 billion, with Ethereum-based platforms continuing to dominate. Aave leads with $25.41 billion, followed by Lido and EigenLayer, fueling speculation of a “DeFi Summer 2.0.”
Stablecoins: The Killer App of 2025
Stablecoins have emerged as 2025’s most compelling use case, now accounting for $247.24 billion in market cap—a 56% increase from $160 billion a year ago. Institutional-grade issuers like PayPal (PYUSD), JPMorgan (JPM Coin), SocGen (EURCV), and Revolut are pushing stablecoin adoption into the mainstream. Bank of America is also reportedly exploring a dollar-backed token, awaiting regulatory green lights.
Regulation Ramps Up Through 2027
Regulatory clarity is on the horizon. Key legislative steps are expected in 2025, including the GENIUS/STABLE Act and a successor to FIT 21, with SEC and CFTC crypto asset classifications in focus. By 2027, banks may launch full-scale crypto custody services, enabled by new federal frameworks.
Conclusion
From lending to stablecoins and sweeping regulation, the foundation of a new institutional crypto cycle is being laid. With growing alignment across markets and policy, 2025 is shaping up to be a pivotal year in mainstream digital asset adoption.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/institutions-fuel-crypto-resurgence-as-stablecoins-defi-and-regulation-align-for-new-growth-cycle/