In June, crypto markets rose modestly, but stablecoins were the big winners, according to a report by Binance Research.
Markets remained bullish but volatile throughout the month, while stablecoins became a focal point. On Thursday, July 3, Binance Research published a report outlining key trends from the past month. Most notably, stablecoin volume reached $253.7 billion, as landmark legislation passed the U.S. Senate.
The passage of the Genius Act in the Senate was a major catalyst that drove stablecoin adoption. The act brings stablecoins into a regulated framework, prompting more companies to enter the space. Circle’s USDC led the charge, accounting for 79% of net stablecoin issuance in June.
At the same time, stablecoin regulation served as a catalyst for growth in other areas. The total crypto market cap rose 2.62% in June, despite volatility caused by the Israel-Iran conflict. Interestingly, Bitcoin (BTC) outperformed altcoins, with its dominance rising to 65%, the highest level since early 2021.
Crypto-related firms also saw significant gains, especially those embracing Bitcoin treasury strategies. Several companies saw quadruple-digit returns since adopting Bitcoin, which helped attract new investors. Notably, Japanese firm Metaplanet overtook Strategy as the best-performing Bitcoin play on the stock market.
EFT inflows were strong, despite volatility
ETF inflows were strong despite market turbulence, according to the Binance Research report. Net inflows for Bitcoin and Ethereum (ETH) ETFs stood at $4.5 billion and $1.16 billion, respectively.
Still, traders experienced significant liquidations, highlighting the growing divide between short-term speculators and long-term investors. On June 22, the market saw the largest three-day liquidation event since February, primarily triggered by the escalation of conflict between Israel and Iran.
The war, which the U.S. entered directly, threatened to drive oil prices to record highs, raising fresh concerns about inflation and adding pressure to risk assets, including crypto.
