In July, the cryptocurrency market capitalization rose 13.3%. This is driven by Bitcoin repeatedly reaching new all-time highs, rising institutional demand across BTC, ETH, and major altcoins, growing digital asset treasury adoption, and increased regulatory clarity following the passage of major crypto bills on stablecoins. Market dynamics also shifted, with altcoins outperforming — led by ETH — supported by a record 19-day streak of positive net inflows into spot ETH ETFs.
Altcoin and Bitcoin dominance reversed course in July; Bitcoin dominance fell 5.2% to 60.6%, while altcoin dominance rose ~10% to 39.2%. While Bitcoin had rallied earlier in the year and once again consolidated near all-time highs, July marked the first time this pause aligned with a broader shift in market positioning — supported by risk-on sentiment and improving macro conditions. These included the absence of major market shocks seen in prior months, supportive economic indicators, expectations of an approaching Fed rate-cut cycle, and growing regulatory clarity. Key drivers such as the passage of three crypto bills, progress on ETF approvals, and rising institutional interest in altcoin futures and corporate treasury allocations further fueled the rotation. Adoption narratives around tokenization and stablecoins also contributed to the strengthening sentiment.
Corporate ETH holdings rose ~127.7% in July to over 2.7M ETH, now ~46.5% of ETF-held ETH, as 24 new companies added ETH to their balance sheets. The increase coincided with a 50% rally in ETH, making it one of the month’s top-performing large-cap assets. This marks the strongest month on record for institutional treasury adoption, driven by staking yield, ETH’s deflationary mechanism, and growing preference for direct exposure over passive ETF vehicles.
July saw the landmark GENIUS Act become U.S. law, creating the first federal framework for fully reserved, AML-compliant stablecoins backed 1:1 by cash or short-term Treasuries. This regulatory clarity accelerated institutional adoption, with JPMorgan expanding its deposit-token pilot and Citi exploring tokenized deposits for cross-border payments. Visa also highlighted stablecoins as complementary to its network and plans to expand support. On-chain stablecoin transfer volumes remained near their highs in July, continuing to outpace Visa since late 2024 and reinforcing their growing role as global payment rails and mainstream payment infrastructure.
Tokenized stocks reached a market cap of US$370M, with US$53.6M concentrated in major assets like TSLA and SPY — marking a 220% increase since June. Active on-chain addresses surged from 1.6K to 90K, reflecting strong investor interest reminiscent of the early DeFi boom. Centralized exchanges currently outpace on-chain venues by over 70 times in tokenized stock trading volume. If just 1% of global stocks were tokenized, the market could exceed US$1.3T, driving significant growth in on-chain assets and DeFi infrastructure toward mainstream adoption.
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