Here’s How The Crypto Market Performed in May, According to Binance Research

The analysis arm of the world’s largest cryptocurrency trade has launched a report highlighting key developments and market actions within the digital asset sector for Could. The evaluation gives insights into development and challenges noticed throughout varied sectors, together with decentralized finance (DeFi), exchange-traded funds (ETFs), gaming, and tokenization.

Based on Binance Analysis, the cryptocurrency sector experienced a ten.3% improve in market capitalization, pushed by bitcoin (BTC) reaching a brand new all-time excessive (ATH) and substantial inflows into ETFs.

Market Highlights for Could

The expansion in Could was a continuation of the upward momentum witnessed in April. Main crypto belongings noticed robust features, and even ether (ETH), which has been underperforming on this bull run, posted a 43.9% restoration.

Because the market rebounded, volatility remained elevated as a consequence of adjustments in U.S. commerce insurance policies. There have been renewed tariff tensions between the U.S., China, the European Union, and the UK, which triggered market uncertainty. Though a courtroom ruling ultimately halted all tariffs quickly, the U.S. authorities subsequently reinstated them.

Regardless of the cautious macroeconomic atmosphere, BTC noticed elevated institutional adoption. Company entities have embraced the digital asset as they’ve grow to be extra assured in its long-term worth as a hedge and strategic asset. Round 116 public firms collectively expanded their treasuries to 809,100 BTC because the asset’s ATH renewed the concern of lacking out (FOMO) among the many companies. Extra companies unveiled multi-million greenback plans to amass BTC as regulatory readability improved.

Company Entities Are Diversifying

Though BTC has remained the core reserve asset amongst company treasuries, some companies are cautiously diversifying their investments into ETH, XRP, and Solana (SOL).

“Trying forward, the trajectory of company crypto treasuries will rely on broader macro situations, regulatory evolution, and market cycles. Momentum stays robust for now, with Bitwise projecting that company treasuries might exceed 1 million BTC by 2026,” the Binance Analysis staff said.

Coming right down to sectors, Binance Analysis discovered that Could witnessed structural divergence and capital rotation. DeFi’s 19% development was attributed to new product launches and yield alternatives. Meme cash rose 9.3%, whereas Synthetic Intelligence (AI)-related tokens and Actual-World Belongings (RWAs) spiked 4.7% and three.6%, respectively. In distinction, the Gaming and Layer-2 sectors remained weak.

In the meantime, U.S. spot Bitcoin ETFs recorded inflows of at the least $5.2 billion, the very best since November 2024. Nevertheless, profit-taking amid renewed macroeconomic uncertainty towards the tip of the month triggered outflows of as much as $962 million.