Crypto market cap hits $3.5 trillion
Crypto market tops $3.5 trillion as institutions drive Bitcoin rally
The global cryptocurrency market has surged past a $3.5 trillion valuation, fueled largely by a wave of institutional capital flowing into Bitcoin and renewed confidence across the digital asset ecosystem.
According to Sentora (formerly IntoTheBlock), institutional allocations into Bitcoin have accelerated, pushing BTC toward new highs despite short-term volatility, reports Crypto News.
This trend reflects broader investor confidence in crypto as an asset class, supported by growing macroeconomic clarity and evolving regulatory frameworks. Institutions are not only buying Bitcoin directly but also allocating to BTC ETFs and derivatives markets.
DeFi lending rebounds as stablecoins expand
Decentralized finance is also showing strong signs of recovery, with DeFi lending volumes climbing back to $30 billion. This resurgence follows over a year of stagnation and suggests increasing demand for on-chain credit and yield opportunities.
At the same time, the stablecoin market has expanded 56% year-over-year, now topping $250 billion in market cap. Sentora’s report highlights a shift toward “bank-grade” stablecoins from firms like Société Générale (EURCV), PayPal (PYUSD), and JPMorgan (JPM Coin), as well as a rumored USD token from Bank of America. These developments signal growing convergence between traditional finance and blockchain-native systems.
Regulatory outlook turns optimistic
New legislative proposals in the U.S. — including the GENIUS Act and FIT 21 successor — are expected to further define federal oversight of stablecoins and DeFi protocols. Sentora forecasts formal guidance from the SEC and CFTC by 2027, enabling regulated custody solutions and structured compliance paths for decentralized platforms. Together, these regulatory advances and institutional tailwinds are laying the groundwork for a more stable and mature crypto ecosystem poised for sustained growth.
Recently we wrote that Bitcoin price continues to trade inside a tight price range on Thursday, May 29, as recent volatility compresses.
