Binance has released its latest detailed market report! It discusses a number of altcoins and shares 10 themes expected to be popular!

According to the digital asset market report for the first half of 2025 published by Binance Research, the total market capitalization of cryptocurrencies has increased by 1.99% since the beginning of the year.

Following the significant increase of 96.2% in 2024, this more moderate rise is seen as a signal reflecting the cautious optimism of investors.

According to the report, the market experienced a decline of 18.61% in the first quarter of 2025 but closed the year in positive territory with a recovery of 25.32% in the second quarter. During this period, rising geopolitical tensions and tariffs caused fluctuations in global markets, bringing both risk and opportunity to the crypto markets.

According to the Binance report, Bitcoin outperformed most traditional stock indices with a 13% value increase in the first half of 2025. With a market capitalization of over 2 trillion dollars and reaching its highest market dominance in the last four years at 65.1%, BTC continues to be the favorite asset of institutional investors. Spot Bitcoin ETFs played a significant role in this growth, while over 140 companies holding a total of 848,100 BTC highlighted institutional adoption.

According to the report, Bitcoin's fundamental economic model is also undergoing a transformation. Despite the slowdown in on-chain activities, Bitcoin's usage in the DeFi (BTCFi) space has shown an annual increase of over 550%. Network security and hash rates have remained strong.

Layer 1 blockchains (L1) exhibited different performances in the first half of the year. Ethereum maintained its leadership with the Pectra update and strong institutional inflows; Solana drew attention with increased transaction volume and reliability. BNB Chain set a record in decentralized exchange (DEX) activity, while memecoins increased their diversity with real-world assets (RWA) and AI-based applications.

According to the report, while Avalanche is growing in institutional subnets (subnet), the Sui chain has doubled its DeFi TVL. While Tron continues to play a central role in stablecoin transactions, TON has deepened its strategic integration with Telegram.

Ethereum Layer 2 (L2) solutions have painted a more complex picture. While optimistic rollups maintain liquidity leadership, Base and Arbitrum stand out with sustainable revenue models. ZK rollups, despite making technical advancements, lag behind in terms of TVL and user engagement. Progress in sequencer decentralization and "Stage 2" preparations presents a complicated tableau.

According to Binance, in the first half of 2025, the decentralized finance (DeFi) space has taken on a more institutional and sustainable structure. The total locked assets (TVL) remained stable at approximately 151.5 billion dollars, while the monthly active user count increased by 240% year-on-year. The share of DEXs in spot trading volume reached a record of 29%. Notable developments included restaking led by EigenLayer and strengthened prediction markets through the collaboration with Polymarket-X.

The stablecoin market continued to grow. The total market capitalization surpassed 250 billion dollars, setting a record. Tether (USDT) maintains its leadership with a market capitalization of 153–156 billion dollars, while Circle's USDC nearly doubled its supply, reaching 61.5 billion dollars. The passing of the GENIUS Act by the U.S. Senate and the implementation of the MiCA regulations in Europe were major factors that increased institutional confidence.

As institutional adoption gains momentum, innovation in products focused on individual users has also attracted attention. Crypto wallets are transforming into super applications, while DeFi has integrated with traditional banking. Memecoins and cryptocurrency games have emerged with their cultural impact. Developments in this area highlight the potential of crypto to touch everyday life beyond finance.

In the first half of the year, the integration of artificial intelligence and physical infrastructure emerged as prominent themes. Decentralized Financial Artificial Intelligence (DeFAI) enables automatic decision-making in DeFi protocols, while Decentralized Physical Infrastructure Networks (DePIN) extend blockchains into the physical world. According to the report, these developments indicate that Web3 offers a new economic model that combines virtual and physical worlds.

With Donald Trump's return to the presidency, the US has begun taking crypto-friendly steps, while Europe has started to implement stricter regulations. In Asia, Hong Kong supports innovation with open licenses and tax incentives, while the strict regulations in Singapore have led to the migration of the sector. Progress has also been made in terms of international tax transparency and regulatory compliance.

Binance Research lists the 10 main themes it expects to emerge in the second half of 2025 as follows: macroeconomic outlook, regulatory developments, Bitcoin's cyclical role, the integration of stablecoins into financial infrastructure, real-world assets, artificial intelligence, consumer experience, Ethereum scalability, Layer 2 competition, and decentralized infrastructures.