Q2 2025 Crypto Market Review: Compliance and Real Returns Drive Industry Turning Point

In the second quarter of 2025, the crypto market showed signs of recovery overall. The stabilization of the global macro environment and the easing of tariff policies provided favorable conditions for the flow of funds. Several countries have introduced friendly policies to support the development of cryptocurrencies, and traditional financial institutions have also begun to actively participate in the encryption field.

The stablecoin sector has been particularly active. The expansion of USDT/USDC in scale, the establishment of regulatory frameworks in multiple countries, and Circle’s successful public listing have all pushed the encryption narrative closer to the mainstream market. The on-chain derivatives sector continues to heat up, with Hyperliquid becoming a phenomenon, with daily trading volumes repeatedly surpassing some centralized exchanges. As on-chain trading systems continue to optimize, the derivatives market is accelerating its transformation from “off-chain replication” to “on-chain native.”

Global Stablecoin Regulatory Framework Accelerates Implementation

In Q2 2025, the global stablecoin market exhibited a dual characteristic of sustained growth and improved regulation. As of June 24, the total market capitalization of stablecoins reached $240 billion, an increase of about 20% from the beginning of the year. USD stablecoins accounted for over 95% of the market share, with USDT and USDC combined accounting for 89.4%. In the past three months, the on-chain transaction volume of stablecoins exceeded $10 trillion, with an adjusted effective transaction volume of $2.2 trillion.

The “Genius Act” passed by the U.S. Congress establishes a comprehensive federal regulatory framework for stablecoins. The act requires stablecoins to achieve a 1:1 dollar full reserve and undergo high-frequency audits and disclosures. This not only alleviates market concerns about the transparency of stablecoins but also establishes a “U.S. Treasury absorption pool” linked to on-chain payment systems. The act clearly positions compliant stablecoins as payment tools, excluding them from being classified as securities, thereby removing a significant barrier for traditional financial institutions to enter the crypto market.

South Korea and Hong Kong are also actively promoting stablecoin regulation. South Korea has proposed the “Digital Asset Basic Law,” allowing eligible local companies to issue stablecoins. Hong Kong will officially implement the “Stablecoin Regulation,” becoming one of the first regions globally to establish a stablecoin licensing system.

The passage of the “Genius Act” has far-reaching implications for USDC and USDT. The act provides a clear legal status for USDC, which has actively sought Compliance, while also requiring Tether to comply with U.S. regulations. This not only paves the way for Compliance for leading stablecoins but also lays the foundation for the development of the entire industry.

Circle’s Listing Leads a New Paradigm of On-chain Corporate Balance Sheets

The successful listing of Circle on the New York Stock Exchange is the biggest highlight of this quarter. Its IPO raised 1.1 billion dollars, and its market value once soared to 68 billion dollars. This represents that compliance crypto companies have officially entered the mainstream capital market, opening a window for other crypto companies to go public.

Multiple publicly listed companies have taken substantial steps in digital asset allocation. SharpLink Gaming has accumulated 188,478 ETH and deployed staking. DeFi Development Corp is restructuring its business with Solana as its core asset. Strategy and Metaplanet continue to increase their Bitcoin holdings as reserve assets.

The corporate encryption asset strategy shows characteristics of globalization and multi-chain, including complex asset utilization methods such as staking, DeFi protocol integration, and on-chain governance participation. Enterprises are building balance sheets and revenue models centered around encryption assets, shifting the financial model from “reserve” to “yielding.”

Hyperliquid Leads the Rise of On-Chain Derivatives and Real Yield DeFi

In Q2 2025, Hyperliquid achieved a key breakthrough in the on-chain derivatives market. Its cumulative trading volume reached as high as $621.5 billion in Q2, capturing 80% of the decentralized perpetual contract market share. Hyperliquid’s success stems from its innovative token economic model and unique technological architecture.

Hyperliquid’s core profit comes from trading fees, with 97% used to repurchase HYPE tokens. In the past seven months, the platform’s total fees reached $450 million, and the HYPE market value held by the assistance fund exceeded $1 billion. The platform has also designed a tiered fee rate and staking reward mechanism based on user trading volume to enhance token usability.

The success of Hyperliquid has sparked a renewed focus in the industry on the concept of “real yield.” This model emphasizes generating income from actual economic activities rather than through inflationary token issuance. Real yield is crucial for the long-term viability of DeFi protocols, and investment institutions should prioritize protocols with real economic activities and defensible business models.