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Binance Reports 10.3% Crypto Market Growth in May Driven by BTC Rally and ETF Inflows

Binance Reports 10.3% Crypto Market Growth in May Driven by BTC Rally and ETF Inflows

Published:
2025-06-07 18:11:10
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The cryptocurrency market experienced a significant uptick in May, with Binance Research highlighting a 10.3% increase in overall market capitalization. This growth was primarily fueled by Bitcoin's surge to a new all-time high and substantial inflows into cryptocurrency ETFs. Ethereum also showcased a remarkable recovery, bouncing back by 43.9% after previous underperformance. Despite the positive momentum, market volatility remained a concern due to shifting U.S. trade policies, including tariff tensions with China and the EU. While courts temporarily halted some tariffs, the crypto market continues to demonstrate resilience and growth potential.

Crypto Market Sees 10.3% Growth in May Amid ETF Inflows and BTC Rally

Binance Research reports a 10.3% surge in cryptocurrency market capitalization during May, fueled by Bitcoin's new all-time high and robust ETF inflows. The rebound extended April's momentum, with Ethereum posting a 43.9% recovery despite previous underperformance.

Market volatility persisted due to shifting U.S. trade policies, including tariff tensions with China and the EU. While courts temporarily halted tariffs, their subsequent reinstatement created uncertainty. Institutional adoption of Bitcoin accelerated as corporations increasingly view it as a strategic hedge.

AB Token Launches on Binance Alpha, Marking Strategic Step in Cross-Chain Vision

AB DAO's native token $AB has commenced trading on Binance Alpha, the exchange's early-access platform for exclusive listings. The MOVE serves as a technical stress test and strategic launchpad for AB's cross-chain ambitions.

Binance Alpha provides a controlled environment where AB's Core infrastructure—including its cross-chain protocol—can be battle-tested under real-world conditions. The platform's security audits and active user base enable rapid iteration before broader exposure.

This selective listing taps into Binance's institutional-grade risk management while concentrating market attention. The partnership aligns with AB's 'Anywhere' vision for interoperable assets, leveraging Binance's global reach of hundreds of millions of users.

Hyperliquid Perps Volume Hits Record $248B in May Amid Trader Frenzy

Hyperliquid's onchain perpetual futures platform achieved a historic $248 billion in trading volume during May, marking a 51.5% surge from April. The platform now commands 10.54% of Binance's perps volume, signaling a shift in market dynamics.

Trader James Wynn's $100 million loss during a bitcoin downturn became a focal point of the platform's volatility. Year-over-year growth stands at 843%, up from $26.3 billion in May 2023.

The platform's CEX-like execution and non-custodial infrastructure continue attracting traders. Its Season 2 points campaign further accelerated adoption, though high-profile losses underscore the risks of Leveraged crypto trading.

Institutional Crypto Adoption Surges Amid Regulatory Clarity and Market Innovations

Binance's latest research highlights a significant acceleration in institutional crypto adoption, driven by regulatory clarity from the SEC and groundbreaking market developments. The approval of spot Bitcoin ETFs and Circle's anticipated IPO are reshaping Wall Street's approach to digital assets.

ETF inflows have become a key barometer of institutional interest, with products like BlackRock's IBIT attracting billions in capital. Meanwhile, Circle's public listing plans signal growing maturity in stablecoin infrastructure—a critical pillar for institutional participation.

The SEC's recent enforcement actions, while controversial, have paradoxically provided clearer boundaries for compliant crypto operations. This regulatory scaffolding coincides with JPMorgan's unexpected embrace of blockchain-based settlement solutions, marking a notable shift among traditional finance giants.

Investors Remain Cautiously Optimistic Amid Market Volatility Triggered by Trump-Musk Feud

Cryptocurrency markets faced significant liquidation pressures over the past 48 hours as a public dispute between former U.S. President Donald TRUMP and Elon Musk rattled investor sentiment. Bitcoin briefly plunged below $101,000, while Ether dipped under $2,400—both marking multi-week lows.

Despite the bearish turn, Binance's weekly report notes growing institutional confidence in a soft economic landing. Exchange balances for BTC and ETH have dropped 4.3% and 7.5% respectively since May began, suggesting accumulation as investors move assets off trading platforms.

The Trump-Musk confrontation has underscored crypto's persistent correlation with traditional markets. Bitcoin's two-month price movement continues to mirror the S&P 500, maintaining its dual identity as both risk asset and digital gold.

Bitcoin Faces Potential Pullback as Whale Offloads $194 Million to Binance

Bitcoin's 1.7% gain to $104,942 on June 7, 2025, masks underlying bearish signals as Tether's lending custody wallet deposits 200 BTC ($20.88M) into Binance. This follows a cumulative dump of 1,650 BTC ($174.7M) since BTC reclaimed $100,000 on May 9, heightening sell-pressure concerns.

Transaction volume plunged 40% amid the whale activity, reflecting dwindling market participation. Analysts warn of a possible retracement to $96,000 if the sell-off accelerates, with volatility expected to persist.

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