Binance Research: The cryptocurrency market will continue to grow in 2025, driven by institutional adoption and the expansion of DeFi, which will promote market prosperity
ChainCatcher message, according to the latest monthly market insights report from Binance Research, the crypto market is expected to continue growing in 2025, driven by accelerated institutional adoption, evolving regulatory frameworks, and the expansion of the DeFi ecosystem.The Binance report emphasizes that Bitcoin's dominance in global assets has increased, and despite a significant pullback in late December last year, the overall market still shows strong fundamentals.December last year was a significant milestone for the cryptocurrency market, as the Federal Reserve decided to reduce the planned interest rate cuts for 2025 from four to two, leading the cryptocurrency market cap to rise to a record $3.91 trillion before falling to $3.41 trillion.This pullback wiped out $500 billion in market cap, but Bitcoin remains firmly in the seventh position among global assets (by market cap), surpassing Saudi Aramco and silver.Bitcoin's market cap grew by 123.4% last year, driven by the approval of spot Bitcoin ETFs and their subsequent record growth, as well as MicroStrategy's inclusion in the Nasdaq 100 index and continued adoption by institutional investors. This year's growth made Bitcoin the second-best performing asset among the top ten global assets, only behind Nvidia.The report points out that speculation around the U.S. potentially adopting Bitcoin as a strategic reserve asset further fueled Bitcoin's momentum. As capital shifts from altcoins to Bitcoin, its dominance continues to strengthen, solidifying its position as a leading asset class.Although the market has experienced volatility, Bitcoin's strong fundamentals and the increasing adoption in traditional finance may pave the way for continued growth in 2025.The report indicates that if current trends continue, Bitcoin could challenge higher positions in the global asset rankings, coming closer to gold.The DeFi sector has also witnessed significant growth, with decentralized spot and perpetual contract trading volumes reaching new highs of $326 billion and $356 billion in December, respectively.Hyperliquid is a major driver of this surge, accounting for over 60% of the total trading volume in decentralized perpetual contracts. Meanwhile, lending and liquid staking protocols also set historical highs of $55 billion and $71 billion, respectively.The stablecoin market has undergone a significant shift, with Ethena's USDe surpassing USDS to become the third-largest stablecoin by market cap at $5.9 billion.Additionally, Binance Research highlights the emerging role of AI agents in the crypto ecosystem. Leading AI agent tokens now have a market cap in the billions, with increasing adoption rates in trading and entertainment sectors.Despite adjustments at the end of the year, the report concludes that favorable regulatory developments, rising institutional participation, and technological advancements in DeFi and AI will enable the cryptocurrency market to continue expanding in 2025.