According to the digital asset market report for the first half of 2025 released by Binance Research, the total cryptocurrency market value has increased by 1.99 percent since the beginning of the year. Following a strong 96.2 percent increase in 2024, this more moderate increase is seen as a signal reflecting cautious optimism from investors.
According to the report, the market declined by 18.61% in Q1 2025 but recovered by 25.32% in Q2, ending the year with positive growth. Although the global market experienced volatility during this period due to increasing geopolitical tensions and tariffs, this situation brought both risks and opportunities for the cryptocurrency market.
According to Binance's report, Bitcoin has outperformed most traditional stock indices with a 13% value growth in the first half of 2025. With a market capitalization of over $2 trillion and a market dominance rate of 65.1%, the highest in four years, BTC remains the asset of choice for institutional investors. Spot Bitcoin ETF funds play a crucial role in this growth, while over 140 companies hold a total of 848,100 BTC, indicating institutional acceptance.
According to the report, the underlying economic model of Bitcoin is also undergoing transformation. While on-chain activity slows down, Bitcoin usage in the DeFi space (BTCFi) has increased by more than 550% compared to the same period last year. Network security and hash rates remain high.
Layer 1 (L1) blockchains have made significant strides in the first half of the year. Ethereum continues to maintain its leading position with the Pectra update and strong capital inflow from institutions, while Solana attracts attention thanks to high transaction volumes and improved reliability. BNB Chain has broken records for decentralized exchange (DEX) activity and diversified its services with memecoins, real-world assets (RWA), and AI-based applications.
According to the report, Avalanche has grown in enterprise networks, while Sui Chain has doubled its DeFi TVL. Tron continues to play a central role in stablecoin transactions, and TON has strengthened strategic integration with Telegram.
Ethereum Layer 2 (L2) solutions present a more complex picture. Optimistic rollups continue to lead in liquidity, while Base and Arbitrum rollups stand out with sustainable revenue models. ZK rollups, while achieving technical advancements, lag behind in TVL and user interaction. Progress in decentralizing sequencers and preparing for Phase 2 indicates a more complex landscape.
According to Binance, the decentralized finance (DeFi) space has transformed into a more institutional and sustainable structure in the first half of 2025. While total value locked (TVL) remains stable at around $151.5 billion, the number of active monthly users has increased by 240% compared to the same period last year. The market share of DEX spot trading reached a record 29%. Notable developments include restaking led by EigenLayer and a strengthened prediction market due to collaboration with Polymarket-X.
The stablecoin market continues to grow. The total market capitalization has broken records, surpassing $250 billion. Tether (USDT) maintains its leading position with a market cap of $153–156 billion, while Circle's USDC has nearly doubled its supply to $61.5 billion. The passage of the GENIUS Act by the U.S. Senate and the issuance of MiCA regulations in Europe are key factors boosting institutional confidence.
As the adoption of this technology accelerates, innovations in consumer-focused products are also gaining attention. Cryptocurrency wallets have evolved into super apps, while DeFi has integrated with traditional banking. Memecoins and cryptocurrency games have become prominent due to their cultural impact. Developments in this space showcase the potential of cryptocurrencies to affect everyday life, extending beyond the financial sector.
Integration with artificial intelligence and physical infrastructure is a prominent theme in the first half of this year. Decentralized Financial Artificial Intelligence (DeFAI) enables automation of decision-making in DeFi protocols, while Decentralized Physical Infrastructure Network (DePIN) extends blockchain into the real world. According to the report, these developments demonstrate that Web3 provides a new economic model, connecting the virtual world and the real world.
With the return of Donald Trump, the United States has taken cryptocurrency-friendly steps, while Europe has enacted stricter regulations. In Asia, Hong Kong has pushed for innovation with open licensing and tax incentives, while Singapore's stringent regulations have led to a wave of withdrawals from the sector. International tax transparency and regulatory compliance have also made progress.
Binance Research lists 10 key themes they expect to emerge in the second half of 2025: macroeconomic outlook, legal developments, Bitcoin’s cyclical role, stablecoin integration into financial infrastructure, real-world assets, artificial intelligence, consumer experience, Ethereum scalability, Layer 2 competition, and decentralized infrastructure.
