Conservative growth, investor attention

Crypto’s total market capitalization has risen by just 1.99% since the start of the year, according to a report from Binance Research. This number may not seem impressive compared to previous Bull Runs.

But it reflects cautious optimism among investors. Experts consider it a positive signal in the context of macroeconomic uncertainty and the prolonged impact of the 2022-2023 sharp correction.

Conservative growth with hidden variables

A notable highlight of the report is the clear differences between the two quarters of this year.

In the first quarter of 2025, the market fell sharply 18.61%, affected by multiple factors. These included long-term revised bearish sentiment, tightening venture capital funding and concerns about a global macroeconomic recovery.

However, as we entered the second quarter, the market quickly rebounded with a growth rate of 25.32%. This surge completely offsets previous decline and injects fresh optimism throughout the industry.

A strong second quarter recovery could be attributed to several major drivers.

First, US monetary policy has stabilized after a series of interest rate hikes over the past few years. This stabilization helped to improve investors’ sentiment, paving the way for capital to return to high-risk assets like crypto.

Second, many major blockchain infrastructure projects, such as Layer-2 solutions, have made significant advances in technology and user adoption. Furthermore, real-world asset (RWA) tokenization and AI-integrated Defi applications also show significant advances in these areas.

These advances have provided the basis for unlocking new capital inflows into the market.

However, the modest 1.99% growth in H1 2025 also reflects a clear reality. The crypto market is no longer driven by FOMO as seen in the previous Bull Cycle.

Instead, investors are becoming more cautious and thoroughly assessing sustainability, business models, and the actual cash flow potential of each project. As a result, the market is becoming more “quality-driven” with only projects with actual capabilities and clear strategies to gain traction.

Q2 recovery causes hope for H2

In this context, long-term investment trends focusing on infrastructure, stubcoins and revenue-generating projects have gained momentum.

Traditional financial institutions continue to experiment with cryptographic products via ETFs and RWAs. It is also exploring blockchain applications for cross-border payments, driving a wave of integration between traditional financial and digital assets.

Looking forward to the second half of 2025, the crypto market faces both opportunities and challenges.

If macro conditions continue to be stable and the support policies of blockchain technology are maintained, a stronger growth stage is expected. However, the possibility of market divergence remains high.

Projects that become trending without radical value can be eliminated quickly, paving the way for people who can have real value and long-term impact.