The global crypto market cap has surpassed $3.5 trillion, driven by a surge in institutional interest in Bitcoin and developments across the broader digital asset ecosystem.
According to a report from on-chain analytics firm Sentora (formerly IntoTheBlock), the surge is attributed to increasing institutional allocation into Bitcoin (BTC), alongside notable rebounds in decentralized finance and the stablecoin sector.
DeFi lending volumes have returned to $30 billion, while stablecoin capitalization has climbed 56% over the past year.
Stablecoin developments
Sentora pointed to a shift in the composition of the stablecoin market, highlighting that traditional finance players are gaining ground.
Tokens like Société Générale’s EURCV, PayPal’s PYUSD, JPM Coin, and a rumored dollar token from Bank of America are among the “bank-grade” entrants expanding their footprint in the $250 billion stablecoin market.
Regulatory clarity is also playing a role. Sentora noted that new U.S. federal stablecoin legislation — referred to as GENIUS Act — and a successor to the FIT 21 Act are expected to be introduced in 2025.
Follow-up guidance from the SEC and CFTC could enable regulated bank custody of digital assets and introduce formal DeFi oversight frameworks by 2027.
The confluence of institutional demand and an evolving regulatory landscape appears to be setting the stage for a more mature and structured crypto market in the coming years.
