The crypto sector experienced a surprising second quarter of 2025, marking a clear trend reversal compared to the beginning of the year, according to the latest report from CoinGecko.
After a first quarter marked by a decline of -18.6%, the market regained ground with a growth of +24.0%, bringing the total capitalization to 3.5 trillion dollars.
This rebound allowed the sector to once again approach the highs recorded in January, recovering a significant 663.6 billion dollars in value.
However, behind this recovery lies a more complex reality: the average daily trading volume has continued to decrease, marking a decline of -26.2% on a quarterly basis and settling at 107.8 billion dollars.
This is the second consecutive quarter in which spot activity contracts, despite the growth in prices.
The crypto market returns to growth according to the 2025 report
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In Q2 2025, bitcoin has regained the spotlight, surpassing the $100,000 threshold and reaching a new all-time high.
Investor confidence has massively poured into this asset, bringing its dominance to 62.1% of the total market capitalization. This is an increase of 3 percentage points compared to the previous quarter and 7.6 points since the beginning of the year.
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If bitcoin has captured attention, the altcoin have struggled to keep up. Ethereum, however, has shown signs of recovery: its market share has risen to 8.8%, with an increase of 0.8 percentage points.
While remaining the only one among the top seven cryptocurrencies to see a growth in dominance, ETH is still far from the levels at the beginning of the year. The category “Others,” which groups the minor altcoin, has shrunk to 13.7%, highlighting the persistent weakness of the sector.
In the second quarter, Ethereum closed at 2,488 dollars, with a jump of +36.4% compared to the 1,805 dollars at the beginning of the period.
This growth allowed ETH to outperform other big names like BTC, SOL, XRP, and BNB. However, the price remains below the 3,337 dollars opening of 2025.
Domino effect on the sector
It is also worth noting the reduction in average gas costs to 3.5 Gwei, while daily transactions have risen to 1.3 million. On June 5, 2025, Circle’s IPO on the NYSE represented a watershed event for the sector.
The initial public offering was oversubscribed by 25 times, with the stock closing the first day at 83.23 dollars, compared to the 31 dollars of the placement price.
In the following days, the stock reached a high of 298.99 dollars, marking an incredible +864.5% compared to the IPO price.
Circle’s success has shone a spotlight on other crypto companies ready to go public, including Kraken, Gemini, and Grayscale. The enthusiasm generated by the IPO has helped bolster investor confidence in the growth potential of companies in the sector.
Despite the market rebound, the spot trading volume on major centralized exchanges (CEX) fell by -27.7% compared to the previous quarter, stopping at 3.9 trillion dollars.
Binance maintained its leadership with a market share between 37% and 39%, but its monthly volume fell below 500 billion in April and June.
Only MEXC, HTX, and Bitget recorded growth, while Crypto.com experienced the most significant decline, dropping by -61.4% and losing positions in the global ranking.
In stark contrast, the trading volumes on decentralized exchanges (DEX) have increased by +25.3% on a quarterly basis, reaching a new all-time high of 876.3 billion dollars. The DEX:CEX ratio has risen from 0.13 to 0.23, marking an all-time record.
Perpetual DEX: Hyperliquid dominates the scene
PancakeSwap has established itself as the most performant DEX, with a growth of +539.2% and a volume of 392.6 billion dollars, equivalent to 45% of all DEX transactions for the quarter.
This exploit is linked to the launch of Binance Alpha, which directs trades precisely on PancakeSwap, making the Binance Smart Chain the most used chain for decentralized trading.
On the contrary, the DEX on Solana like Orca, Meteora, and Raydium have seen their volumes plummet by -40.5%, -56.8%, and -73.4%, respectively, with investors’ attention shifting towards other blockchains.
The trading volume of perpetual futures on DEX has reached a new all-time quarterly high of 898 billion dollars.
Hyperliquid has consolidated its position as a leader, holding a market share of 72.7% and recording a volume of 653.2 billion dollars.
Among the top ten perpetual DEX, only Hyperliquid, Aster, RabbitX, and EdgeX have seen their volumes grow, while dYdX – once an industry leader – has continued to lose ground.
Q2 of 2025 marked a phase of deep transformation for the cryptocurrency market.
While on one hand bitcoin has strengthened its position as a dominant asset, on the other hand the growth of decentralized exchanges and the success of IPOs like that of Circle suggest that the sector is evolving towards greater decentralization and maturity.
Investors and market operators will now have to closely monitor these trends to seize new opportunities and tackle the challenges of an ever-evolving ecosystem.
