The cryptocurrency market in May 2025 shows a combination of bullish sentiment, volatility, and new opportunities. Following a busy 2024 marked by bitcoin growth and institutional interest, the market continues to evolve under the influence of macroeconomics, regulatory changes, and technological innovations. In this article, we will examine current events, bitcoin dominance, altcoin dynamics, and new initiatives such as Alpha Points on Binance.
1. Overall market condition
The total capitalization of the cryptocurrency market in May 2025 approaches $3.9 trillion, close to the historical high of December 2024. The first quarter of 2025 was challenging due to U.S. trading tariffs, but the second quarter shows stabilization supported by institutional investments and regulatory initiatives.
Bitcoin (BTC): BTC price reached $111,000, as confirmed by posts on X. The market remains calm, indicating a more mature growth phase compared to previous cycles.
Altcoins: Solana (SOL) and XRP show growth but lag behind bitcoin, strengthening its dominance.
Stablecoins: Their capitalization exceeded $200 billion in the first quarter of 2025, reflecting demand for low-volatility assets for payments and value storage.
2. Bitcoin dominance: local upward trend
Bitcoin dominance, its share of the total market capitalization, is 55–60% and continues to grow. InvestingHaven's analysis confirms that BTC is outpacing altcoins in growth rates. Reasons:
Institutional demand: Approval of spot BTC ETFs in the U.S. in January 2024 attracted large capital. BlackRock and Fidelity manage assets of $15 billion and $9 billion respectively. Companies like MicroStrategy are increasing their BTC reserves.
Macroeconomic instability: U.S. trading tariffs against Canada and Mexico caused volatility, pushing investors towards bitcoin as a 'safe' asset.
Declining interest in altcoins: Following the hype around meme coins (TRUMP, MELANIA, LIBRA) in 2024, investors have become more cautious, shifting capital into BTC.
Forecast: BTC dominance may reach 60–65% in the coming months. Historically, peaks in dominance are followed by capital rotation into altcoins, potentially leading to an "alt season" by the end of 2025.
3. Major trends
The market is shaped by the following factors:
a) Institutional adoption
Banks, including BNY Mellon and Bank of America, are integrating cryptocurrencies, offering custody services for USDC and tokenized assets.
Predictions for bitcoin range from $150,000 to $200,000 by the end of 2025, supported by the establishment of a Strategic Bitcoin Reserve in the U.S.
Investments in blockchain startups grew to $485 million in 2024.
b) Growth of AI tokens
AI tokens associated with decentralized machine learning platforms reached a market cap of $39 billion. They attract attention due to the integration of AI and blockchain.
Search interest in AI tokens continues to grow.
c) Tokenization of assets
Tokenization of real estate, stocks, and commodities is gaining popularity, making investments more accessible.
Forecast: tokenization may shift focus from speculation to practical blockchain applications.
d) Regulatory changes
In the U.S., the GENIUS Act is being discussed, which will establish rules for stablecoins and the crypto market. The law is expected by August 2025.
The cancellation of SEC Staff Accounting Bulletin 121 in January 2025 simplified the accounting of crypto assets.
Tighter regulations in the UK, Japan, and Germany create risks for platforms like Binance.
e) Growth of stablecoins and DeFi
Stablecoins (USDC, Tether) dominate transactions, accounting for 63% of illegal operations in 2024, but are also used for legitimate purposes.
DeFi platforms, especially on Ethereum, are growing, and the share of staking may exceed 50% in 2025.
4. Alpha Points on Binance
Binance encourages participation in Web3 through the Alpha Points system launched in 2024. It incentivizes activity on the Binance Alpha platform and in the Binance Wallet, providing access to airdrops and IDOs.
Mechanism:
Balance Points: Earned for holding assets in the main Binance CEX account and in the Binance Wallet.
Volume Points: Earned for purchasing Binance Alpha tokens (e.g., PORT3, BLUE, HIPPO).
Balance and transaction snapshots are taken daily, with the final score being the average over 15 days.
Rewards:
In April 2025, 65 points granted 1500 SIGN tokens.
In May, 205 points provided 482 RDAC tokens.
Strategy: Buy tokens through Binance Smart Chain to double points and accumulate them in advance, as thresholds are increasing (e.g., 137 points for BOOP).
Alpha Points increased trading volume on Binance by 15% and activity in BSC by 10%.
5. Popular cryptocurrencies
According to ZebPay and Bankrate, leading assets include:
Bitcoin (BTC): Growth forecast to $150,000–$200,000.
Ethereum (ETH): Leading platform for DeFi, but ETH/BTC is in a downtrend. Regulatory easing could support growth.
Solana (SOL): Popular for speed (65,000 TPS) and low fees ($0.00025). 17% of investors plan to buy SOL.
XRP: Increased by 350% in a year after settling Ripple disputes.
BNB: Tied to Binance's success, but subject to regulatory risks.
Monero (XMR): Attracts attention for its anonymity.
Meme coins (Dogecoin, Shiba Inu, Pepe): Depend on social media, but their long-term value is questionable.
6. Risks
Volatility: The first quarter of 2025 was the worst for BTC in seven years due to trading tariffs.
Crypto crime: Illegal addresses received $40.9 billion in 2024, primarily through stablecoins.
Regulation: Tighter rules in some countries threaten centralized platforms.
Technical risks: Issues with Ethereum scalability and Solana network outages persist.
7. Forecast and recommendations
The market is in a consolidation phase with a bullish tilt. Predictions:
Bitcoin: Expected to reach $150,000 in the first half and $185,000 by the end of the year.
Altcoins: Solana, XRP, and Ethereum are poised for growth during capital rotation.
DeFi and stablecoins: Doubling of DeFi activity is expected, with stablecoins continuing to dominate.
Recommendations:
Diversify the portfolio by including BTC, ETH, SOL, and XRP.
Manage risks by investing only spare funds.
Participate in the Alpha Points program by researching projects before purchasing.
Stay updated on regulatory and macroeconomic news.
Stick to a long-term strategy by selecting fundamentally strong projects.
Conclusion
The cryptocurrency market in May 2025 demonstrates steady growth, with bitcoin dominance, institutional interest, and new opportunities such as Alpha Points. Despite risks including volatility and regulation, the market offers prospects for prepared investors. Monitoring BTC dominance, news, and technological trends will help remain profitable.
Note: This article is not financial advice. Investing in cryptocurrencies carries high risks. Conduct your own research before making decisions.
