Coinbase + Glassnode: Charting Crypto Q3 2025
Tailwinds Take Shape in Q3
The third quarter of 2025 marks a clear pivot in digital asset markets. Risk sentiment is rebounding, regulatory clarity is improving, and capital is flowing back into high-conviction assets. With Bitcoin reaching fresh all-time highs and stablecoin activity setting new records, market conditions are aligning for continued structural growth.
Produced in collaboration with Coinbase Institutional, the latest Charting Crypto report distills the most critical trends shaping institutional crypto strategy this quarter. From ETF flows and profit-taking behavior to smart contract activity and macro correlations, the report offers a data-driven perspective grounded in on-chain and off-chain market structure.
Highlights from this edition:
- Bitcoin leads the market as dominance reaches 64%, fueled by ETF inflows and renewed institutional accumulation.
- Spot ETF flows accelerate: Q2 saw over $14.6B in net inflows to BTC and ETH ETFs - more than 20x the Q1 figure.
- Stablecoins solidify their role in the financial stack, with total supply surpassing $230B and monthly volumes exceeding $4T.
- Ethereum shows signs of rotation, as investors reposition following Q1’s capitulation and Q2’s strong recovery.
With analysis from both Coinbase and Glassnode analyst teams, this quarterly report remains a core resource for professional investors navigating crypto’s latest developments.
Key Insights from Q3 2025
1. Bitcoin regains dominance in flight to quality
Bitcoin's share of total crypto market capitalization climbed to 64%, its highest level since early 2021. Ethereum and Solana also saw modest gains, while altcoin market share continued to contract. The rotation into "blue-chip" assets underscores a clear institutional preference for liquidity and resilience amid ongoing macro uncertainty.
2. ETH sentiment flipped decisively in Q2
Glassnode’s Net Unrealized Profit/Loss (NUPL) metric shows that Ethereum investor sentiment recovered from capitulation to belief, signaling a dramatic shift in market psychology. This rebound helped drive ETH’s Q2 rally and may support continued accumulation if macro tailwinds persist.
3. Long-term ETH holders took profits into strength
Ethereum’s liquid supply rose by 8% while illiquid supply fell by 6% in Q2, suggesting that long-term holders were selectively realizing gains into the rally. This redistribution pattern reflects a healthy market structure, with newer entrants absorbing supply from early adopters.
Together, these trends point to a maturing market environment where institutional flows, macro tailwinds, and on-chain behavior are aligning. Bitcoin’s dominance, Ethereum’s sentiment shift, and selective profit-taking by long-term holders all suggest that the current cycle is transitioning from recovery to expansion - potentially laying the groundwork for a structurally stronger digital asset market in the second half of 2025.
For the full Q2 2025 edition of Charting Crypto, including exclusive contributions from Bitwise, Grayscale, and ParaFi, download the report here.