ETH is trading around $2,770, up nearly 11% this month and outperforming Bitcoin, which has risen 5%, according to CoinDesk data.
Institutional interest is driving much of ETH’s momentum. OKX Chief Commercial Officer Lennix Lai noted in an interview that Ethereum has overtaken Bitcoin in derivatives markets, with ETH making up 45.2% of perpetual futures volume versus BTC’s 38.1%. This trend aligns with data from Deribit.
Meanwhile, institutional Bitcoin buyers continue accumulating during dips. Glassnode reports that long-term holders realized over $930 million in daily profits during recent rallies, with supply increasing rather than declining — an unusual pattern for late-stage bull markets. Despite geopolitical risks and volatility, institutional conviction remains strong for both assets. Lai suggests $3,000 ETH is increasingly likely, as Ethereum serves as a gateway to regulated DeFi and Bitcoin benefits from ETF-driven accumulation.
The stablecoin market reached a record $228 billion, growing 17% year-to-date, driven by investor confidence, the Circle IPO, higher DeFi yields, and improved U.S. regulatory clarity, according to CryptoQuant.
Stablecoin reserves on centralized exchanges hit $50 billion, with USDC increasing 1.6 times to $8 billion so far in 2025. Tron leads in attracting stablecoin capital thanks to fast transaction finality and integrations with issuers like Tether. Presto Research highlighted Tron’s $6 billion net stablecoin inflow in May and strong user engagement, while Ethereum and Solana lost capital and bridge volume, signaling a shift toward chains like Base, Solana, and Tron that offer faster execution and better incentives.
On the AI front, autonomous agents are expected to evolve into complex, self-directed workflows, but currently operate in silos. An essay by a16z Crypto’s Scott Duke Kominers argues that blockchain’s open and composable architecture provides the necessary infrastructure for interoperable agent economies. Early projects like Halliday are building standards for cross-agent workflows, and companies such as Catena and Skyfire enable autonomous agents to transact without human involvement. Coinbase also supports efforts to develop this infrastructure, suggesting blockchains could become the backbone of an open AI economy.
Web3 gaming remains the largest dApp category but saw its market share drop from 21% in April to 19.4% in May, according to DappRadar. Despite stable daily active users near 4.9 million, venture funding for gaming projects fell sharply to $9 million in May from over $220 million monthly in late 2024. Several previously funded projects have shut down, revealing a core industry challenge: a lack of engaging gameplay. Many titles prioritized tokenomics and marketing over game quality, resulting in poor player retention. This issue has been noted in surveys since 2022.
Market updates:
- Bitcoin: Fell 2% after failing to hold $110,000, testing support at $108,500 amid geopolitical tensions, though institutional ETF inflows suggest steady demand.
- Ethereum: Rose 5% past $2,800 with $815 million in institutional ETH ETF inflows, supported by favorable technicals, record staking, and SEC clarity on staking regulations.
- Gold: Increased 0.97% to $3,363 following U.S. inflation data indicating cooling prices, raising expectations for potential Fed rate cuts.
- Nikkei 225: Opened mixed, down 0.22%, as a stronger yen pressured exporters but optimism over a U.S.-Japan trade deal supported gains.