Binance has released its August 2025 market report, showing that digital assets continue to perform strongly this year. The total cryptocurrency market capitalization is up 9.9% since January, adding over $600 billion despite an early decline in Q1.

The exchange attributes the recovery to global monetary conditions. Notably, global money supply grew at its fastest pace since 2021, making more capital available for markets. At the same time, the U.S. central bank stopped reducing liquidity, even though it still signaled caution.

Bitcoin and Ethereum Drive Market Strength

According to the report, Bitcoin and Ethereum remained the leading assets in 2025. Ether (ETH) rose by about 36%, the highest among major tokens, while bitcoin (BTC) advanced nearly 18% during the same period.

One key factor behind this momentum was U.S. spot exchange-traded funds (ETFs), which attracted over $28 billion in net inflows. Binances report added that possible approvals of altcoin ETFs could provide further liquidity and expand participation.

ETF demand and treasury allocations also pushed Bitcoin dominance from 40% to 65.1% earlier in the year. The share later eased to 57.2%, pointing to a rotation of capital into alternative assets.

Ethereum followed a different trend, with staking reaching 35.8 million ETH after the Pectra upgrade and growing institutional adoption. With nearly 30% of ETH locked, Binance described the effect as a liquidity squeeze that may strengthen its long-term position.

Wider Market Shifts and On-Chain Growth

Along with the momentum in Bitcoin and Ethereum, stablecoin supply expanded by 35% to $277.8 billion. The increase shows broader adoption across markets as well as in payment and settlement use cases.

Institutional participation increased as well, with public companies now holding 1.07 million BTC, or 5.4% of the supply. Strategy remains the largest holder, while ETH corporate treasuries jumped 88.3% in a single month to 4.36 million ETH.

On-chain activity kept pace with these trends. Decentralized exchanges captured 23.1% of spot activity and 9.3% of futures volumes in 2025. DeFi lending also expanded, with total value locked rising 65% to nearly $80 billion.

The report also highlighted progress in tokenized equities. The market reached $349 million this year, with daily volumes consolidating around $145 million amid clearer regulation and participation from traditional brokers.