According to the digital asset market report for the first half of 2025 published by Binance Research, the total market value of cryptocurrencies has increased by 1.99 percent since the beginning of the year. Following the massive 96.2 percent rise in 2024, this more moderate increase is considered a signal reflecting cautious optimism from investors. According to the report, the market experienced an 18.61% decline in the first quarter of 2025 but recovered 25.32% in the second quarter, closing the year in positive territory. While global markets experienced volatility during this period due to rising geopolitical tensions and customs duties, this situation presented both risks and opportunities to crypto markets. According to a Binance report, Bitcoin outperformed most traditional stock indices with a 13% increase in value in the first half of 2025. With a market capitalization of over $2 trillion and a 65.1% market dominance, its highest level in four years, BTC remains a favorite asset of institutional investors. Spot Bitcoin ETFs played a significant role in this growth, while more than 140 companies held a total of 848,100 BTC, demonstrating institutional adoption. According to the report, Bitcoin's fundamental economic model is also undergoing transformation. Despite the slowdown in on-chain activity, Bitcoin's use in the DeFi (BTCFi) space has increased by over 550% year-over-year. Network security and hash rates remain strong. Layer 1 (L1) blockchains performed differently in the first half of the year. Ethereum maintained its leadership with the Pectra update and strong institutional inflows, while Solana attracted attention with its high transaction volume and increased reliability. BNB Chain broke records in decentralized exchange (DEX) activity and diversified its offerings with memecoins, real-world assets (RWA), and AI-based applications. According to the report, Avalanche grew in enterprise subnets, while Sui chain doubled its DeFi TVL. Tron continued to play a central role in stablecoin transactions, and TON deepened its strategic integration with Telegram. Ethereum Layer 2 (L2) solutions presented a more complex picture. Optimistic rollups maintained their liquidity leadership, while Base and Arbitrum stood out with their sustainable revenue models. ZK rollups, while making technical advancements, lagged behind in terms of TVL and user engagement. Progress in sequencer decentralization and Stage 2 preparations paint a more complex picture. According to Binance, the decentralized finance (DeFi) space transitioned to a more institutional and sustainable structure in the first half of 2025. While total assets locked (TVL) remained stable at approximately $151.5 billion, the number of monthly active users increased by 240 percent year-over-year. DEXs' share of spot trading volume reached a record 29 percent. Among the notable developments were restaking led by EigenLayer and prediction markets strengthened by the Polymarket-X collaboration. The stablecoin market also continued to grow. Total market capitalization broke a record, surpassing $250 billion. Tether (USDT) maintained its leadership with a market capitalization of $153–156 billion, while Circle's USDC nearly doubled its supply to $61.5 billion. The US Senate's passage of the GENIUS Act and the enactment of MiCA regulations in Europe were key factors in boosting institutional confidence. Related News: Strong Rally Continues in Ethereum: Analyst Shares His Target Price Level -“It No Longer Seems Unrealistic” As institutional adoption accelerates, innovation in products focused on individual users has also attracted attention. Crypto wallets have evolved into super apps, while DeFi has integrated with traditional banking. Memecoins and cryptocurrency games have gained prominence for their cultural impact. Developments in this area demonstrate the potential for crypto to impact everyday life beyond finance. Integration with artificial intelligence and physical infrastructure was a prominent theme in the first half of the year. Decentralized Financial Artificial Intelligence (DeFAI) enabled automated decision-making in DeFi protocols, while Decentralized Physical Infrastructure Networks (DePIN) extended blockchains into the physical world. According to the report, these developments demonstrate that Web3 offers a new economic model that bridges the virtual and physical worlds. With Donald Trump's return to the presidency, the US has taken crypto-friendly steps, while Europe has implemented stricter regulations. In Asia, Hong Kong has fostered innovation with open licensing and tax incentives, while Singapore's strict regulations have led to an exodus from the sector. Progress has also been made in international tax transparency and regulatory compliance. Binance Research lists 10 key themes that it expects to emerge in the second half of 2025: macroeconomic outlook, regulatory developments, Bitcoin's cyclical role, stablecoin integration into financial infrastructure, real-world assets, artificial intelligence, consumer experience, Ethereum scalability, Layer 2 competition, and decentralized infrastructures. *This is not investment advice. Continue Reading: Binance Publishes Latest Detailed Market Report: Mentions Numerous Altcoins, Shares 10 Themes Expected to Be Popular
