CoinGecko 2025 Report: Crypto market cap falls 10.4% as stablecoins, derivatives and institutional buys surge
CoinGecko’s 2025 crypto industry report: global crypto market cap closed 2025 at $3.0T, down 10.4% year‑on‑year, with a Q4 drop of 23.7% after a historic $19B liquidation tied to tariff news. Despite falling prices, on‑chain activity and infrastructure expanded. Key highlights: stablecoin supply jumped 48.9% to $311B (PYUSD notable), daily trading volume hit an annual high of $161.8B, and gold and major equities outperformed BTC (BTC down 6.4%). Institutional Digital Asset Treasury Companies (DATCos) deployed at least $49.7B in purchases during 2025 and now hold over 1M BTC and 6M ETH (>5% of each supply). Prediction markets exploded (+302.7% to $63.5B), with Kalshi overtaking Polymarket in Q4. Perpetual futures volumes reached record highs: centralized perp CEXes +47.4% to $86.2 trillion annual volume; perp DEXes surged 346% to $6.7 trillion. The report signals a market with lower prices but stronger utility, liquidity tools and institutional participation—factors relevant for traders assessing volatility, leverage risk and stablecoin liquidity.
Neutral
The report combines bearish price action with bullish structural developments. Market capitalization and BTC price fell (annual -10.4%, Q4 -23.7%), which is bearish for short‑term sentiment and likely to increase volatility and deleveraging events. However, several bullish signals for medium/longer‑term market health are present: stablecoin supply grew sharply (+48.9%), perpetual futures and prediction market volumes hit record highs, and institutional DATCos materially increased holdings (now holding >5% of BTC and ETH supply). These factors support liquidity, product depth and institutional demand—reducing long‑term tail‑risk even as near‑term risk remains elevated. Traders should expect continued high volatility: short‑term setups favor risk management and reduced leverage; increased stablecoin liquidity and institutional accumulation could provide buying support at lower levels over months. Historical parallels: after major deleveraging events (e.g., 2022 LUNA/FTX fallout), volumes and infrastructure recovered before price recovery—suggesting this cycle may follow a similar path where on‑chain growth and institutional buying precede broader price stabilization. Therefore the net market impact is neutral: bearish price momentum now but constructive infrastructure and demand trends that temper long‑term downside.