May 2025 has been a landmark month for the cryptocurrency market, demonstrating significant growth and new development directions in the sector. Binance's research highlights key factors contributing to this change.
Cryptocurrency Market in May
According to Binance's research, the cryptocurrency market grew by 10.3% in May, extending the bullish trend from April. This recovery was also accompanied by significant volatility due to geopolitical factors, leading to nearly $1 billion in liquidations of short positions on Bitcoin and Ether. Nevertheless, the overall trend remains positive, with net inflows into Bitcoin ETFs reaching $5.2 billion, the highest figure since November 2024. BlackRock's IBIT product emerged as the leader among inflows, while GBTC recorded $320 million in outflows.
Drivers of DeFi and Tokenized Assets
Binance's analysis also highlights a significant surge in the DeFi and tokenized asset sectors. In May, decentralized finance grew by 19%, driven by product innovations and an increase in total value locked (TVL). A unique highlight was the surge in the tokenized real assets (RWA) market, which rose by 260% in the first half of 2025, reaching a valuation of $23 billion. This sector is primarily supported by private credit and US government bonds.
Real Assets' Impact on the Crypto Economy
RWAs represent a new gateway to the crypto universe. The potential for tokenization transforms previously exclusive assets, such as bonds and real estate, into accessible opportunities for all. Binance's report indicates that most RWA flows pertain to already structured markets, demonstrating a desire for stability. In the long run, tokenization could reshape the entire global financial infrastructure, simplifying access to complex products for both novice investors and institutions.
Data indicates an impressive growth in the RWA and DeFi sector in the first half of 2025, opening up new horizons for the crypto economy and ensuring potential asset democratization for a wider range of investors.
