Coin360 Yearly Dispatch | Top 12 Crypto Stories & Market Highlights in 2025

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Total crypto market cap: $2.93T

Crypto Fear & Greed Index: 23 (Extreme Fear)

BTC.D: 59.67%

2025 Crypto Market Performance: Dispersion, Defense, and Dilution

• 2025 was not a broad bull market but a dispersion event, with BTC down ~6.3% YTD after reaching a fresh ATH of $126K and ETH down ~11.9% YTD following a new ATH at $4,946, signaling macro-asset behavior rather than growth-asset leadership despite ETF approvals and political tailwinds.
• This underperformance stands out versus TradFi, where the S&P 500 rose 17.39% YTD, Nasdaq 100 gained 21.42%, and Dow Jones advanced 14.18%, underscoring crypto’s failure to participate in the broader risk-asset rally.
• Even hard assets materially outpaced crypto, with gold up 72.69% YTD and silver up 174.42%, highlighting that inflation and geopolitical hedging favored traditional stores of value over digital ones.
• Capital concentrated instead of rotating, as only 2 of the top 20 assets posted triple-digit gains, while over 55% of the top 100 cryptocurrencies finished the year down more than 30%, confirming selective risk appetite.

• Scarcity outperformed innovation, with ZEC up ~735% and XMR up ~135%, as privacy narratives and low circulating supply dominated price action amid regulatory uncertainty.
• Defensive crypto proxies quietly led, as PAXG and XAUT gained ~73% each as tokenized gold market cap topped $4 billion, reflecting capital hedging via gold-backed tokens rather than chasing high-beta narratives.
• Exchange-linked tokens showed relative resilience, with BNB up ~20% (new ATH: $1,370) and TRX up ~9.8%, outperforming smart-contract peers as fee generation and cash-flow visibility mattered more than ecosystem promises.

• Layer-1 and Layer-2 growth stories structurally underperformed, with SOL (-35%), AVAX (-65%), ADA (-58%), OP (-84.6%), and STRK (-82.7%), driven by dilution, unlocks, and slower-than-priced adoption.
• The AI narrative fully unwound, as FET (-84%), RNDR (-82%), and GRT (-81.6%) collapsed, marking one of the sharpest narrative mean-reversions in crypto history.
• Meme liquidity proved cyclical, not structural, with PEPE down ~80%, reinforcing that speculative flows dried up once macro tightened and leverage reset.

• Extreme outliers masked weak breadth, as PIPPIN (+6,219%) distorted averages but failed to translate into broader risk-on behavior across majors.
• The market rewarded supply discipline over product delivery, as tokens with high emissions or VC unlock schedules consistently underperformed regardless of roadmap progress.
• The dominant regime was capital preservation, not expansion, positioning 2025 as a reset year where liquidity survived, narratives cleared, and speculative excess was structurally repriced.
• U.S. Spot Crypto ETF’s YTD inflows:
  • BTC: +$21.66B
  • ETH: +$9.72B
  • XRP: +$1.14B
  • SOL: +$755.78M
  • DOGE: +2.05M
  • LINK: +$58.61M
  • LTC: +$7.67M
  • HBAR: +$83.7M

U.S. Policy Tightens Grip on Crypto With Bitcoin Reserve, Stablecoin Law, and Faster ETF Approvals

US policy momentum accelerated as Donald Trump signed an executive order to launch a Strategic Bitcoin Reserve using 200,000 forfeited BTC, ordered the U.S. Department of the Treasury and U.S. Department of Commerce to pursue accumulation, and backed a Senate push targeting one million BTC over five years. The United States Congress advanced the GENIUS Act into law, creating a federal stablecoin framework, while the Clarity Act moves toward a United States Senate vote in 2026 amid disputes. Separately, the U.S. Securities and Exchange Commission approved accelerated crypto ETF listing standards, cutting reviews to 75 days and enabling Solana, XRP, Litecoin, Dogecoin, and HBAR launches.

Ethereum Upgrades Enhance Rollup Capabilities, Slash Fees by Up to 60%

In 2025, Ethereum underwent significant upgrades with the Pectra hard fork in May and the Fusaka upgrade in December. Pectra improved account abstraction, staking, and rollup data throughput, while Fusaka raised the gas limit, introduced PeerDAS data-sampling, and expanded blob capacity, potentially cutting fees by 60% for major layer-2 applications. Together, these upgrades advanced Ethereum's rollup-centric roadmap, enhancing user experience and economic models in DeFi. As a result, Ethereum's market cap reached $353.76 billion, with ETH priced at $2,931.03, showing how value dynamics are shifting between base-layer fees and layer-2 ecosystems.

RWA Tokens Soar 186% in 2025, Outpacing Crypto Sectors Amid Institutional Shift

In 2025, Real World Asset (RWA) tokens surged, averaging gains of 186%, contrasting sharply with most crypto sectors, which faced significant losses—AI tokens down 50%, DeFi 35%, and memecoins over 30%. This growth was driven by institutional adoption, regulatory clarity, and improved tokenization infrastructure, with Grayscale noting Chainlink's critical role. Currently valued at $30-$35 billion, tokenized assets could potentially expand 1,000× over five years. Privacy cryptocurrencies also thrived, with Zcash and Monero seeing substantial year-end price increases amid rising interest in transaction confidentiality and financial autonomy amid regulatory scrutiny.

Global Stablecoin Supply Reaches $310 Billion in 2025; JPMorgan Expects $600 Billion by 2028

As of December 2025, global stablecoin supply almost reached $310 billion, marking a 50% annual growth and emphasizing their role in crypto infrastructure rather than as payment disruptors. This came as more TradFi giants expanded their plans to support stablecoins over the year. Despite increased supply, JPMorgan predicts stablecoin values will reach only $500–$600 billion by 2028, far from the trillion-dollar expectations. This growth was largely concentrated among fiat-backed stablecoins, primarily the U.S. dollar, and favored liquidity over yield. The demand stemmed mainly from trading, cross-border transfers, and collateral management, with minimal impact from consumer payment adoption, suggesting stability and reliability are prevailing over complexity in this evolving market.

Bitcoin, Ethereum, and Solana Treasury Holdings Continue Growing Across Institutions, ETFs, and Strategic Entities

Crypto treasuries are scaling across BTC, ETH, and SOL — and for Bitcoin, ETFs & exchanges are the real whales right now. BTC holdings split as follows: ETFs & exchanges lead with 1,642,182 BTC ($143.6B), 7.820% of supply, anchored by BlackRock’s IBIT at 778,052 BTC (3.705%). Public companies follow with 1,088,114 BTC ($95.2B), 5.181%, led by Strategy at 671,268 BTC (3.197%). Governments hold 647,018 BTC ($56.6B), 3.081%, with the U.S. at 328,372 BTC (1.564%). Private companies total 279,414 BTC ($24.4B), 1.331%, led by Block.one at 164,000 BTC (0.781%), plus DeFi & others at 376,787 BTC ($32.9B), 1.794%. On ETH, strategic entities hold 6.81M ETH (5.63%), led by Bitmine Immersion Tech (4.07M), then SharpLink Gaming (863.02K) and The Ether Machine (496.71K); ETFs sit at 6.13M ETH. On SOL, SSR entities hold 20.347M SOL, led by Forward Industries (6.822M), Solana Company (2.300M), and DeFi Development Corp (2.196M).

Crypto ETPs to Double AUM in 2026 After $46.7B Inflows in 2025: Analysts

In 2025, crypto ETPs drew $46.7B in inflows, up from $33.2B in 2024, with Bitcoin pulling $27.2B and Ethereum $12.7B. However, late-year outflows hit $952M, mainly due to US Clarity Act delays, with Ethereum leading outflows at $555M. Looking ahead, analysts forecast crypto ETFs will boom in 2026 with over 100 new filings, net inflows of $15B–$40B, and potential doubling of AUM to $400B. Institutional demand, regulatory clarity, and rising altcoin/staking ETFs are key drivers. Notably, 96% of crypto ETF investors held firm during a 35% drawdown, underscoring resilience.

Crypto Goes Public Again: 2025’s IPO Wave Starts Strong, Ends Strategic

In 2025, several major crypto firms either completed IPOs or formally signaled plans to go public, reflecting renewed capital-markets confidence. Circle led the charge by listing on the NYSE, positioning stablecoin infrastructure as a public-market narrative. Bullish followed with its own listing, emphasizing institutional liquidity and exchange rails. Gemini advanced its IPO ambitions with a Nasdaq listing, while Figure Technologies and BitGo filed to tap public investors beyond trading-centric models. Kraken rounded out the group, confidentially filing and signaling a disciplined path toward eventual public markets.

Crypto Deal-Making Reaches $8.6 Billion in 2025, Driven by Record M&A Activity and Regulatory Clarity

In 2025, crypto deal-making soared to a record $8.6 billion, nearly quadrupling from 2024, with 267 transactions completed, an 18% increase in count. Key acquisitions included Coinbase's $2.9 billion buy of Deribit, Kraken's $1.5 billion purchase of NinjaTrader, and Ripple's $1.25 billion acquisition of Hidden Road. Despite late-year price volatility—Bitcoin dropping from $126,000 to below $88,000—corporate buyers focused on long-term positioning and regulatory clarity. Notably, 11 crypto IPOs raised $14.6 billion, highlighting renewed investor interest amidst improving market conditions. Analysts anticipate sustained M&A activity into 2026, driven by evolving regulatory frameworks.

2025 Marks Regulatory Shift in Crypto: MiCA Activation and Hong Kong's Licensing Advance Reshape Landscape

The Markets in Crypto-Assets (MiCA) regulation will fully activate, instituting EU-wide rules for licensing and capital requirements for crypto-asset service providers, prompting significant changes among euro-stablecoin issuers and exchanges. Concurrently, Hong Kong is advancing its own virtual-asset framework, including a new licensing ordinance and a growing crypto ETF market. As countries like Australia and the UK implement comprehensive regulations, the crypto landscape is shifting from legal ambiguity to structured compliance, reducing market fragmentation. By year-end 2025, the industry displays a tiered structure with established firms, licensed players, and an offshore fringe, reflecting increased regulation and market concentration.

Ripple’s SEC War Ends, $500M Raise Fuels Growth

Ripple Labs and the U.S. SEC officially closed their drawn-out legal battle in 2025, capping nearly five years of litigation over whether XRP was an unregistered security. The case concluded with Ripple paying a civil penalty far below the SEC’s initial $2 billion demand — roughly $125 million — and both parties dropping appeals, cementing regulatory clarity for XRP trading on public markets. With the overhang lifted, Ripple unlocked operational momentum, spurring institutional confidence and culminating in a $500 million strategic funding round valuing the company at about $40 billion as it accelerates growth beyond legal distractions.

Binance Pays $283 Million After Historic Deleveraging Event Liquidates $20 Billion in Crypto Positions

In October 2025, Bitcoin surged to an all-time high of $126,000 but was swiftly followed by a historic deleveraging event that liquidated over $20 billion in positions. Binance faced significant repercussions, ultimately paying $283 million in compensation to users after three of its Earn assets—USDe, BNSOL, and WBETH—depegged amid the market turmoil. The exchange attributed these disruptions to longstanding limit orders and thin liquidity, rather than its actions. Binance committed to making structural adjustments to its pricing indexes while maintaining that it remained fully solvent throughout the crisis.

Bybit Confirms $1.4 Billion ETH Hack, Largest in Crypto History, Yet Remains Solvent

In February, Bybit confirmed a major security breach, with hackers draining over $1.4 billion in ETH from its Ethereum cold wallet. The attackers deceived multisig signers into approving a malicious contract that granted them complete control. This incident is now the largest crypto exchange hack by dollar value, surpassing notable breaches at Coincheck, Mt. Gox, and FTX. Following the theft, the stolen ETH and liquid-staking tokens were rapidly dispersed across numerous new addresses and decentralized exchanges. Despite the significant loss, Bybit maintained that it remains fully solvent, although approximately 75% of its users' ETH deposits were reportedly siphoned off.