A new report by Coinmetrics recapped the most important developments shaping the crypto markets in the year’s second quarter, underscoring the sector’s rebound after a shaky first quarter.

What Happened: The second quarter was shaped by President Donald Trump's tariff announcement in April, but by quarter-end, optimism returned, the report notes.

Bitcoin BTC/USD surged 31.4%, notched new all-time highs, and pushed BTC dominance to 65%, weighing on altcoins.

Publicly traded crypto firms rallied, with Robinhood HOOD jumping by 116% and Coinbase COIN surging by 100%. The rebound reflected renewed risk-on sentiment and surging relevance of crypto equities.

Stablecoins emerged as a backbone of crypto infrastructure, with monthly adjusted transaction volume surpassing $2 trillion and total supply hitting $245 billion.

Leading issuers like Circle USDC/USD and Tether USDT/USD now hold over $135 billion in U.S. Treasuries, underlining their growing alignment with traditional finance.

Regulatory progress was led by the GENIUS Act, which advanced in the U.S. Senate.

The legislation aims to regulate payment stablecoins backed by Treasury reserves and enforces AML compliance, potentially reshaping access to digital dollars.

Ethereum's Role & CEX Shift On-Chain

The Ethereum ETH/USD network saw a major upgrade in Q2 via Pectra, improving scalability and staking dynamics. Staked ETH now accounts for 29.4% of total supply, or 35.5 million ETH, showing rising long-term conviction.

Centralized exchanges leaned into on-chain infrastructure: Coinbase, Kraken, and Robinhood deepened rollup development and Robinhood launched tokenized stocks and introduced Robinhood Chain.

These moves reflect the growing convergence of traditional financial infrastructure with DeFi rails.

Also Read: Bitcoin, Ethereum, XRP, Dogecoin Dip But ‘Early July Dip Buys Will Age Well,’ Trader Says

What's Next: Heading into Q3 and Q4, CoinMetrics anticipates accelerating adoption driven by maturing infrastructure, greater regulatory clarity and expanding on-chain activity from institutions.

If passed, the GENIUS Act could be pivotal, redefining stablecoin regulation and modernizing U.S. payment rails.

With macro uncertainty easing and innovation ramping up, the stage appears set for a strong second half in 2025.

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