Cryptocurrency Market's Capitalization Experienced Solid Expansion in July: Binance Statement
The cryptocurrency market witnessed a significant growth in July 2025, with a 13.3% increase, primarily driven by bitcoin (BTC) hitting several price highs throughout the month. This growth was not limited to BTC, as Ethereum (ETH) and major altcoins also experienced increased interest from institutional investors.
One of the key factors contributing to this growth was the enactment of the U.S. GENIUS Act in July 2025, the first federal framework for stablecoins in the United States. This law, which imposes strict requirements on payment stablecoin issuers, has brought enhanced regulatory clarity to the stablecoin market, helping legitimize their role as on- and off-ramps for cryptocurrencies.
With stablecoins now backed by clear reserves and operating under transparent regulations, they are more reliable as settlement assets and collateral within decentralized finance (DeFi) platforms. This can enhance liquidity, lower transaction risks, and potentially increase DeFi volumes and innovation around Ethereum and altcoins.
However, the increased regulatory compliance costs might lead to some consolidation in the stablecoin market, favoring major stablecoins with strong regulatory compliance. This could influence trading pairs and liquidity distributions across Bitcoin, Ethereum, and altcoins.
The GENIUS Act also attracted increased institutional interest in Bitcoin, Ethereum, and major altcoins. Centralized exchanges handle the majority of tokenized stock trading, with volumes more than 70 times higher than those on on-chain platforms. Ether (ETH) saw a significant jump in corporate holdings, rising by about 127.7% to over 2.7 million ETH. Major banks like JPMorgan and Citi expanded pilot programs for tokenized deposits and cross-border payments due to the passage of the GENIUS Act.
Tokenized stocks saw growing activity in July, reaching a market value of approximately $370 million. Popular tokenized assets like Tesla shares and the S&P 500 ETF accounted for $53.6 million. The surge in ETH corporate holdings coincided with a 50% increase in the asset's price, highlighting the potential synergy between institutional interest and market growth.
The GENIUS Act establishes a federal framework for stablecoins fully backed by cash or short-term Treasuries and compliant with anti-money laundering rules. This regulatory clarity has helped build confidence among market participants, as evidenced by Binance's monthly report. If a small portion of the global stock market is tokenized, it could create a $1.3 trillion market, according to Binance.
Active on-chain addresses for tokenized stocks surged from 1,600 to 90,000, indicating rising user participation. More companies are also integrating digital assets into their corporate treasuries. The passage of new stablecoin laws has been a key contributor to this regulatory progress.
In summary, the GENIUS Act creates formal U.S. regulatory guardrails for stablecoins with comprehensive reserve, supervision, and consumer protections, promoting safer and more transparent stablecoin use. This regulatory clarity enhances stablecoins' foundational role in cryptocurrency trading and decentralized finance, largely benefiting Bitcoin, Ethereum, and altcoins by improving liquidity, reducing systemic risks, and increasing institutional confidence in the broader crypto market.
- The significant growth in the cryptocurrency market in July 2025, which saw a 13.3% increase, was not only driven by Bitcoin (BTC) but also by increased interest from institutional investors in Ethereum (ETH) and major altcoins.
- The GENIUS Act, the first federal framework for stablecoins in the United States, enacted in July 2025, has brought enhanced regulatory clarity to the stablecoin market, helping legitimize their role as on- and off-ramps for cryptocurrencies.
- With stablecoins now backed by clear reserves and operating under transparent regulations, they are more reliable as settlement assets and collateral within decentralized finance (DeFi) platforms, potentially increasing DeFi volumes and innovation around Ethereum and altcoins.
- The GENIUS Act attracted increased institutional interest in Bitcoin, Ethereum, and major altcoins, leading major banks like JPMorgan and Citi to expand pilot programs for tokenized deposits and cross-border payments.
