Bitcoin's market share surges to 63%! Institutions: Strong on-chain fundamentals, Q3 may see a rebound

In the second quarter of 2025, the cryptocurrency market is undergoing significant adjustments. Amid growing global economic uncertainty, investor sentiment has shifted to defense, with funds flooding into leading assets like Bitcoin, driving its market capitalization share up to 63%, a new high since early 2021. During the same period, Ethereum's market share shrank, while Solana maintained its third place thanks to ecological stickiness, and stablecoins consolidated their pillar position in the industry with new trading volume highs.

A joint report by Coinbase and Glassnode indicates that current market risk aversion is strong: excluding Bitcoin, the total cryptocurrency market capitalization has plummeted 41% from the peak at the end of 2024, venture capital scales have retreated to 2017 levels, and mainstream asset prices have fallen below the 200-day moving average, with adjustments likely to continue until mid-year. However, long-term Bitcoin holders are increasing their holdings against the trend, with on-chain liquidity supply decreasing and the volume of loss-making positions rising, showing that strategic investors' confidence remains solid.

Spot ETFs have become a key indicator for observing institutional trends. Although capital inflows were sluggish in Q1, total Bitcoin ETF holdings are nearing $125 billion, highlighting long-term allocation demand. Notably, if investment restrictions from large brokerages are relaxed, potential incremental funds could ignite the market.

Solana has performed impressively in adversity, with Q1 revenue exceeding the total of all L1/L2 platforms combined, and user stickiness and developer activity confirming its ecological resilience. In terms of stablecoins, on-chain trading volume adjusted for trading activity has reached an all-time high, and as scenarios such as cross-border remittances and corporate payments take off, 2025 may attract more investors from high-inflation economies.

Institutions predict that despite short-term market pressure, Bitcoin's on-chain fundamentals are robust, combined with the expansion of ETF channels and the advancement of technological development, the cryptocurrency market is expected to see a rebound in the third quarter. Driven by both economic cycles and industry transformations, the long-term value of leading assets and infrastructure is being redefined.