Coinbase + Glassnode: Charting Crypto Q2 2025

Navigating a Defining Moment for Digital Assets

As we enter the second quarter of 2025, crypto markets are undergoing a significant reset. Investor sentiment has turned defensive amid rising macro uncertainty, with capital consolidating into high-conviction assets like Bitcoin. While altcoin markets face pressure, core infrastructure continues to strengthen, on-chain fundamentals remain resilient, and institutional interest is holding steady through ETF channels and platform development.

Produced in partnership with Coinbase Institutional, Charting Crypto delivers a comprehensive, data-driven assessment of the digital asset landscape. Designed for institutional investors, the report highlights market structure, positioning trends, and the metrics that matter most in navigating a complex and rapidly evolving environment.

Previously published as the Guide to Crypto Markets, the report has been rebranded to Charting Crypto - reflecting its sharper focus, expanded partner contributions, and a new design tailored to the needs of institutional readers.

1. Crypto Market Retracement Highlights Defensive Positioning

Investor sentiment has shifted dramatically since the start of 2025. Mounting concerns over a potential U.S. recession, fiscal tightening, and global trade frictions have catalyzed a significant risk-off move across digital assets. The total crypto market cap excluding Bitcoin fell 41% to $950 billion, while venture capital flows receded to 2017–2018 levels. Both Bitcoin and the COIN50 index dropped below their 200-day moving averages, suggesting a possible extension of the current correction into mid-2025.

2. Bitcoin Reasserts Its Dominance in Risk-Off Conditions

In times of volatility, capital rotates toward perceived quality - and Bitcoin has benefited. BTC now commands 63% of the total crypto market cap, its highest level since early 2021. This dominance reflects investor preference for assets with the highest institutional accessibility and macro relevance. Despite a drop in prices, long-term BTC holders are accumulating again, as evidenced by a reduction in liquid supply and a sharp rise in coins held in loss, suggesting renewed conviction from strategic allocators.

3. Spot ETFs Remain Critical for Market Structure

ETF flows remain a critical barometer of institutional sentiment. Q1 2025 saw subdued but persistent inflows into spot Bitcoin and Ethereum ETFs, with total BTC ETF balances nearing $125 billion. Although funding rates in futures markets have compressed - indicative of lower speculative appetite - spot ETF activity reflects longer-term positioning.

Notably, exposure constraints at major brokerages hint at a latent wave of potential demand should access restrictions ease.

4. Solana’s Revenue Outpaces Every Other L1 and L2

Multicoin Capital’s contribution to the report underscores Solana’s economic resilience. Despite market headwinds and a turbulent narrative around memecoins, Solana generated more revenue in Q1 2025 than all other Layer-1 and Layer-2 networks combined. This revenue leadership highlights its sustained user engagement and suggests that capital efficiency and developer activity remain robust within the Solana ecosystem.

5. Stablecoins Cement Role as Crypto’s Financial Backbone

Stablecoins continue to gain traction as a core component of the crypto financial stack. Adjusted for inorganic activity, stablecoin transaction volumes hit a new all-time high last quarter. With increasingly lower fees and broadening use cases - ranging from remittances to enterprise payments - stablecoins are positioned to capture more institutional and retail flow in 2025, particularly in high-inflation economies.

As always, Charting Crypto delivers the data-rich, high-resolution view that institutional allocators need to navigate crypto’s complexity. From ETF flows and market cycles to volatility correlations and on-chain behavior, this report distills macro context into actionable insights.

For the full Q2 2025 edition of Charting Crypto, including exclusive contributions from Grayscale, a16z crypto, Tephra Digital, and Multicoin, download the report here.