market_tips

2025, The cryptocurrency industry entered a new phase, characterized by a surge in institutional participation. After years of caution and skepticism, large firms are now allocating meaningful capital to digital assets.
But, what changed for institutions to finally turn to an industry they once kept at arm’s length? BeInCrypto spoke with Aishwary Gupta, global head of Payments and Real-World Assets at Polygon Labs, to unpack the drivers behind this transformation. Gupta discusses why institutional inflows now dominate the market and what this shift means.
Institutions Now Dominate Crypto Inflows: Here’s Why
Gupta noted that institutions now account for an estimated 95% of crypto inflows. Meanwhile, retail participation has fallen to roughly 5–6%. This reversal marks a shift from the hype-driven, retail-led cycles of previous years to a market increasingly shaped by structured finance. 
Large asset managers, including BlackRock, Apollo, and Hamilton Lane, have begun allocating around 1–2% of their portfolios to crypto, introducing ETFs and piloting tokenized investment products on-chain.
According to Gupta, the change isn’t in Wall Street’s sentiment but in the infrastructure that now supports institutional activity. He cited Polygon as an example:
“Partnerships with JPMorgan for a live DeFi trade under the Monetary Authority of Singapore, Ondo for tokenized treasuries, and AMINA Bank for regulated staking showed that the rails powering DeFi can also power global finance. Scalability and low-cost transactions allowed TradFi to consider public blockchains usable. Institutions don’t have to experiment in sandboxes anymore — they can make transactions on a well-tested, Ethereum-compatible public network that satisfies auditors and regulators.”
Gupta said institutions are entering the crypto space from two primary directions. The search for yield and diversification, and the pursuit of operational efficiency. The first wave focused on dollar-denominated returns through products such as tokenized treasuries and bank-managed staking. This offered a familiar and compliant framework for generating yield.
The second wave, he explained, is driven by the efficiency gains that blockchain can provide. Faster settlement, shared liquidity, and programmable assets have encouraged large financial networks and fintech firms to experiment with tokenized fund structures and on-chain transfers. 
Retail Retreat Raises Questions About Crypto’s Direction as Institutions Take the Lead
The executive also emphasized the reason for the retail exit. He highlighted that retail investors left the market largely due to losses tied to speculative meme coin cycles and unrealistic profit expectations. This erosion of trust, he noted, pushed many smaller investors to the sidelines. However, he does not view this as a permanent or structural departure.
“A lot more structured and regulated products will be able to win their confidence so they can return to the market,” Gupta told BeInCrypto.
Still, the rise of institutional participation raised concerns about potential dilution of crypto’s decentralization ethos. Gupta contends that maturity and decentralization are not mutually exclusive if public, open networks remain the foundation.
According to him, decentralization is threatened only when networks sacrifice openness, not when new participants enter.
“When built on public rails…instead of in walled gardens,  institutional adoption won’t centralize crypto so much as legitimize it…......TradFi isn’t taking over crypto so much as it is coming on-chain — it’s not a takeover and surrender but rather a merging of infrastructures as chains that host DeFi and NFTs also host Treasuries, ETFs, and institutional staking,” he remarked.
When asked whether institutional dominance could slow innovation by prioritizing compliance over experimentation, Gupta acknowledged the tension. Nonetheless, he argued that it may ultimately benefit the sector.
‘The ‘move fast and break things’ mentality produced great creativity, but it also led to huge losses and regulatory hostility.  Yes, institutions move slowly and with a great focus on compliance, and yes, that can put a strain on creativity, but if done right, it doesn’t have to kill innovation. Instead, it can push it further and force developers to see compliance as a way to foster innovation by building it in from the start. Progress may be slower, but it is stronger and more scalable,” the executive commented.
What Comes Next as Institutions Deepen Their Presence in Crypto
Looking ahead, Gupta said the rise of institutional participation should not be viewed as Wall Street “taking over” crypto but rather joining an increasingly multifaceted ecosystem. 
“The market now runs on institutional-grade liquidity that is slower-moving, yield-bearing and more risk-managed. You no longer see the market dominated by retail traders chasing hype and FOMO across centralized exchanges like in 2017. There’s less emotional trading. Volatility will decrease as capital moves from speculation to long-term yield generation. The narrative has changed, with crypto becoming seen more as financial infrastructure than an asset class,” he mentioned
He expects significant expansion in real-world asset (RWA) tokenization and a gradual increase in market stability as trading activity becomes more disciplined and less speculative. Stronger regulatory integration, he added, is also likely as traditional financial players continue to develop on-chain strategies.
Gupta anticipates further growth in institutional staking and yield-generating networks as regulated entities explore compliant ways to participate in on-chain yield. At the same time, he believes interoperability will become a central focus, with public-chain tools that enable seamless movement of assets across different rollups gaining importance as institutions scale their activity.$POL $NFT $ETH

#market_tips

The crypto market always wants three things: confidence, liquidity, and clarity.
When these three are strong, the market pumps.
When even one of them breaks, the market dumps.

1. The Market Wants “Confidence”
Confidence is the number one fuel.
The market pumps when people believe:
• Bitcoin will hold strong levels
• Whales will not suddenly sell
• No big FUD is coming
• Exchanges are stable and safe
When confidence breaks → the market turns red immediately.

2. The Market Wants “Liquidity”
Liquidity means fresh money entering the market.
Liquidity increases when:
• Bitcoin stays stable
• Institutions buy large amounts
• Retail traders return
• Leverage is low
If liquidity is weak → even small news can cause a crash.

3. The Market Wants “Clarity”
Crypto hates confusion.
Clarity means:
• Clear regulations
• Stable interest rates
• A clear BTC trend (up or down)
• No global panic events
Without clarity → the market stays sideways or unpredictable.

What the Market Wants Right Now (2025)
✔ A clean Bitcoin breakout
If Bitcoin stays strong above key levels, confidence returns.
✔ Stability for altcoins
Altcoins only pump when Bitcoin becomes stable.
✔ Retail buyers returning
Retail FOMO creates real altseason.
✔ No big negative news
One strong FUD can flip the entire market sentiment.

⭐ In short:
The crypto market wants:
Bitcoin stability, more liquidi
ty, zero FUD, and positive momentum.
#market_tips #Market_Update $BTC

Open interest is the total number of outstanding (unsettled) derivative contracts — futures or options — that remain “open,” meaning they haven’t been exercised, expired, or closed.
When open interest jumps to a record high, it usually shows that new money is entering the market — more traders are opening positions, rather than simply closing existing ones. That signals rising confidence or interest in that market.
As such, record-high open interest is often viewed as confirmation of a growing trend. If prices are also moving in the same direction, the rising open interest adds weight to the idea the move is backed by real investor commitment, not just short-term speculation.
On the other hand — though less common — a high open interest near a price extreme can also indicate a potential for reversal: if sentiment turns or too many positions become crowded, the market may correct sharply.
If you like — I can pull up three recent examples (2024–2025) where open interest hit all-time highs, and show what happened next.#market_tips #tradenell #BinanceAlphaAlert