Coingecko 2025 Annual Cryptocurrency Industry Report: Total Market Cap Plummets, But What's Still Rising?

Author: CoinGecko

Translation: TechFlow

Original link: https://www.coingecko.com/research/publications/2025-annual-crypto-report

In the final quarter of 2025, the crypto market experienced a sharp correction, with total market capitalization plunging 23.7% to close the year at $3 trillion. This marked the first annual decline in the crypto market since 2022, down 10.4% year-on-year. Although the market briefly hit an all-time high of $4.4 trillion during the quarter, prices sharply declined following a historic $19 billion liquidation event in October. Despite price corrections, heightened volatility drove daily trading volume to an annual peak of $161.8 billion, while the stablecoin market grew 48.9% year-on-year, reaching a record high of $311 billion.

Throughout the year, the crypto market decoupled from traditional assets—gold surged 62.6%, and U.S. equities performed strongly, while Bitcoin declined 6.4%. However, institutional adoption deepened further, with Digital Asset Treasury Companies (DATCos) deploying at least $49.7 billion in 2025 to acquire over 5% of the total supply of both Bitcoin and Ethereum. Other highlights included a 302.7% surge in prediction market trading volume and centralized exchanges (CEXs) recording a record $86.2 trillion in annual perpetual contract trading volume. These figures indicate that despite falling prices, market infrastructure and utility continued to expand.

Our "2025 Annual Crypto Industry Report" provides comprehensive coverage ranging from the overall crypto market landscape to in-depth analyses of Bitcoin and Ethereum, as well as detailed explorations of decentralized finance (DeFi) and non-fungible token (NFT) ecosystems, along with performance reviews of centralized (CEX) and decentralized exchanges (DEX).

Below are key highlights from the report, but we encourage you to read the full 60-page report for deeper insights.

Seven Key Highlights from CoinGecko’s 2025 Annual Crypto Industry Report

1. The total crypto market cap declined 10.4% in 2025, closing the year at $3 trillion
2. Stablecoin market cap surged by $102.1 billion (+48.9%) in 2025, setting a new record of $311 billion
3. Gold outperformed all major assets in 2025 with a 62.6% gain, while Bitcoin lagged behind with a 6.4% decline; the U.S. dollar and oil also underperformed
4. Digital Asset Treasury Companies (DATCos) invested at least $49.7 billion in 2025, with approximately 50% concentrated in Q3
5. Prediction market trading volume rose 302.7% in 2025 to reach $63.5 billion
6. Centralized exchange perpetual contract trading volume increased 47.4% in 2025 to $86.2 trillion, a new all-time high
7. Decentralized exchange perpetual contract trading volume soared 346% in 2025 to $6.7 trillion, another record high

Crypto Market Cap Plunged 23.7% ($946 Billion) in Q4 2025, Closing Year at $3 Trillion

The total cryptocurrency market capitalization dropped 23.7% in Q4, losing $946 billion, ending the year at $3 trillion—a 10.4% year-on-year decline. This marks the first annual drop in the crypto market since 2022.

At the start of Q4 2025, the crypto market showed strong momentum, briefly reaching an all-time high of $4.4 trillion. However, this peak did not last, as prices steadily declined through late November before entering a consolidation phase until year-end. The downturn was triggered by a historic $19 billion liquidation event on October 10, following the U.S. announcement of imposing 100% tariffs on China.

Meanwhile, average daily trading volume in Q4 rose to $161.8 billion, marking an annual high and a 4.4% increase quarter-on-quarter. This surge was primarily driven by the liquidation event and subsequent high volatility. However, trading volume gradually declined as the market entered a consolidation phase.

Stablecoin Market Cap Surged $102.1 Billion (+48.9%) in 2025, Reaching Record $311 Billion

In Q4 2025, the total stablecoin market cap grew by $6.3 billion, reaching a record $311 billion by quarter-end. Over the full year, the stablecoin market expanded 48.9% year-on-year, adding $102.1 billion in value.

The most significant shift in Q4 came from USDe, the Ethereum-based stablecoin issued by Ethena, which saw its market cap plummet 57.3% (a loss of $8.4 billion) after rapid deleveraging in mid-October. Due to a depegging incident on Binance, USDe's supply dropped from a near-$15 billion peak to $6.3 billion, severely shaking investor confidence in high-yield circular strategies.

Meanwhile, PayPal’s stablecoin PYUSD emerged as a major player, surging 48.4% ($1.2 billion increase) to reach $3.6 billion, securing its position as the fifth-largest stablecoin and replacing World Liberty Financial’s USD1. Its growth was fueled by YouTube’s new creator payout feature and Spark Savings Vault offering an ~4.25% yield.

Gold Leads 2025: Up 62.6%, While Bitcoin Lags with 6.4% Decline; Dollar and Oil Also Weak

In 2025, gold emerged as the top-performing asset, rising 62.6% for the year. In contrast, Bitcoin underperformed, declining 6.4%, mirroring the weakness seen in the U.S. dollar and crude oil.

Gold had an exceptional year, gaining 62.6% overall. In Q4 alone, it rose 11.4%, driven by sustained central bank buying and uncertainty related to tariffs. U.S. equities followed closely, with the Nasdaq Composite up 20.5% and the S&P 500 rising 16.6%, supported by the ongoing artificial intelligence narrative.

In contrast, while commodities and stocks performed strongly, Bitcoin (BTC) struggled, ending the year down 6.4%. Assets that underperformed relative to BTC included the U.S. Dollar Index (down 10.0%, impacted by rate cuts and political shifts) and crude oil (down 21.5%, due to global oversupply and record output from non-OPEC nations).

Digital Asset Treasury Companies (DATCos) Invested At Least $49.7 Billion in 2025, With ~50% Concentrated in Q3

Digital Asset Treasury Companies (DATCos) became significant market participants in 2025, collectively investing at least $49.7 billion in cryptocurrencies throughout the year. Q3 was the peak investment period, accounting for half of the annual total, largely due to the emergence of several new altcoin-focused DATCos.

However, investment activity slowed significantly in Q4, with only $5.8 billion deployed. The crypto market downturn pressured DATCo stock prices, causing many to fall below their adjusted net asset value (mNAV) of 1.0. This forced them to redirect capital toward share buybacks rather than continuing to accumulate digital assets.

As of January 1, 2026, DATCos collectively held $134 billion in crypto assets—an increase of 137.2% from $56.5 billion on January 1, 2025. They currently hold over 1 million Bitcoin and 6 million Ethereum, representing more than 5% of each asset’s total supply.

Prediction Market Trading Volume Soared 302.7% in 2025 to Reach $63.5 Billion

Prediction markets experienced explosive growth in 2025, with trading volume increasing 302.7% year-on-year to reach a record $63.5 billion.

Nominal trading volume in prediction markets surged from $15.8 billion in 2024 to $63.5 billion in 2025, reflecting a 302.7% year-on-year increase.

At the beginning of 2025, Polymarket dominated the space with 85.6% market share in Q1 but was overtaken by Kalshi in Q4. By the final quarter, Kalshi captured 39.6% of the market, while Polymarket slipped to second place with 32.4%. Meanwhile, Opinion, a BNB Chain-based platform backed by Yzi Labs, launched in November and quickly emerged as a strong challenger. Opinion reached $7 billion in monthly trading volume in December, matching Kalshi, although current volumes may be inflated by airdrop farming activities.

Centralized Exchange Perpetual Contract Volume Grew 47.4% in 2025 to $86.2 Trillion, Setting New Record

In Q4 2025, the top ten centralized perpetual contract exchanges (Perp CEXes) recorded $21.2 trillion in trading volume, down 12.0% from $24.0 trillion in Q3. For the full year, volume reached $86.2 trillion—an increase of 47.4% compared to 2024—and set a new all-time high.

October 2025 became the second-highest trading month on record, trailing only August when Bitcoin hit its latest all-time high. In contrast, December was the quietest month of the year, with volume dropping to just $5.3 trillion.

Market share among the top ten Perp CEXes remained relatively stable throughout 2025. The only notable change was MEXC’s surge in trading volume during November and December, propelling it past OKX, Bybit, and Bitget into second place. Outside the top ten, KuCoin stood out in 2025 as the only non-top-ten Perp CEX to surpass $1 trillion in trading volume.

Decentralized Exchange Perpetual Contract Volume Rose 346% in 2025 to $6.7 Trillion, Hitting Record High

Trading volume on decentralized perpetual contract exchanges (Perp DEXes) rose 80.8% in Q4 2025, increasing from $1.8 trillion in Q3 to $3.2 trillion in Q4.

In 2025, the top ten Perp DEXes recorded $6.7 trillion in annual trading volume, a 346% increase from $1.5 trillion in 2024. The ratio of Perp DEX volume to centralized exchange (CEX) volume jumped from 2.5% a year earlier to 7.8%.

Volume growth was primarily driven by incentive programs and airdrops offered by platforms such as Lighter, Aster, edgeX, GRVT, and Paradex. Hyperliquid remained the most active Perp DEX overall in 2025 but was surpassed by Lighter in Q4. Both Hyperliquid and Lighter have now entered the annual top ten list of perpetual contract exchanges, reporting $2.9 trillion and $1.3 trillion in trading volume respectively.