The total market cap on crypto saw a significant consolidation period during the month of June 2025, characterized by resilience as well as heightened volatility. In a week of wild volatility, the total crypto market cap increased by 2.62%. Bitcoin’s dominance jumped up to 65%, the highest market share Bitcoin has had since 2021, a clear indicator of a changing market sentiment. Bitcoin and Ethereum focused Exchange Traded Funds (ETFs) experienced heavy net inflows, underscoring a flood of institutional interest.

With higher volatility, especially in Bitcoin, we saw a massive long liquidation event. The market now awaits the SEC's decision on the proposed ADA ETF on July 15, which could introduce further market movement.

ETF Inflows and Market Dominance

Bitcoin ETFs received net new cash of $4.49 billion, while Ethereum ETFs rushed $1.16 billion in new cash. These inflows highlight the growing acceptance of cryptocurrencies as a desirable investment vehicle among the likes of institutional investors. Bitcoin dominance surges Bitcoin’s dominance rise to 65% shows that investors are favoring the top crypto when they feel market uncertain.

Bitcoin volatility was back in the news. It fell by more than 11% from June 9 to June 23 but then made a modest recovery, closing the month with a 1.3% gain. This volatility exemplifies the speculative characteristics of the market, driven by retail trading and derivatives.

The Nasdaq-100 had a strong month, finishing June up 5.5%. It’s this positive correlation that points to a larger positive financial market sentiment, though crypto’s higher than usual volatility is still a key player.

DeFi Sector Experiences Contraction

The Total Value Locked (TVL) in the Decentralized Finance (DeFi) sector had a drop of 2.19% for the month of June. This contraction signals an early, though perhaps significant, change in investor sentiment and/or capital reallocation within the crypto ecosystem. Ethereum gained most of its share again in the DeFi space. This growth is indicative of how strong confidence in its platform is, even amid the overall downtrend.

During that year, PancakeSwap became a dominant player among DEXs, growing its total market share from 16% to 42%. This overwhelming growth is due in large part to the platform’s Infinity upgrade, which significantly improved the platform’s functionality and user experience.

As of June, the total available supply of stablecoins reached a high of $253.7 billion. This exorbitant sum underscores their key part in providing liquidity and stability to the crypto market. Since the start of the year, stablecoin on-chain transactions have exceeded $21.5 trillion. This recent boom further highlights their essential function in enabling and supporting trading and investment activities.

Volatility and Liquidation Event

A $39 billion crypto crash sent the market into the most violent volatility spike of 2023, translating to the biggest 3-day liquidation event this year. More than $1.5 billion in long positions were liquidated, mostly due to speculative retail behavior amplified by the use of derivatives. This incident highlights the dangers of high-leverage trading and how quickly the market can correct itself.

The SEC’s next important deadline for the ADA ETF decision is July 15. This announcement is likely to move the needle heavy on the supply side of the market. A favorable ruling would likely boost investment in Cardano (ADA) and further legitimize the crypto market. On the other hand, a bad decision would be likely to set off an immediate market crash and heightened uncertainty.