BOSS Wallet reported on July 30th that Bitcoin's market capitalization has surpassed $1 trillion, bringing its total market capitalization to $2.38 trillion. The total market capitalization of the entire crypto market is approaching $4 trillion. This milestone marks the transformation of crypto assets from fringe investments to mainstream financial assets. XBIT stated that the core forces driving this round of expansion include continued inflows of spot ETF funds, increased corporate treasury holdings, and the regulatory clarity brought by the GENIUS Act.
Twitter : @XBITDEX
Bitcoin (BTC), the leading cryptocurrency, has recently performed exceptionally well. Its price hit a new high of $123,000, pushing its total market capitalization to $2.38 trillion and its realized market capitalization above $1 trillion for the first time. This is a significant development, as even at this high, significant capital inflows continue to underscore the market's growing confidence in Bitcoin's long-term role as a global asset. Bitcoin's market position is becoming increasingly solid, particularly amidst the continued growth of funds and institutional interest in spot Bitcoin ETFs.
Market activity is showing early signs of a "lead-and-contagion" phenomenon. Ethereum (ETH) has demonstrated relative strength, with the ETH/BTC exchange rate surging 73% since May, surpassing $3,900. This momentum is driven by record ETF inflows, accelerated adoption by corporate treasuries, and the positive impact on the Ethereum ecosystem (particularly stablecoins) following the passage of the GENIUS Act. Analysts at XBIT (DEX Exchange) noted that not only has Bitcoin trading volume remained strong, but trading volumes for ETH and major altcoins such as SOL and XRP have also increased significantly over the past few weeks. Bitcoin's market dominance has dropped to 59%, and the total altcoin market capitalization is approaching $1.6 trillion. XBIT has listed several high-yield protocols in the Ethereum ecosystem (such as LSD staking and lending platforms), providing users with a one-stop DeFi trading service.
BOSS Wallet reported that one of the key drivers of growing demand for Bitcoin and Ethereum is spot exchange-traded funds (ETFs). After a brief slowdown in Bitcoin ETF inflows in March and April, inflows into Bitcoin ETFs accelerated again in May, with total holdings of US spot Bitcoin ETFs exceeding 1.27 million BTC (approximately 6.4% of the total supply). BlackRock's iShares Bitcoin Trust (IBIT) remains the largest holder. Ethereum has also experienced a similar surge in demand, with spot Ethereum ETFs experiencing continuous net inflows, even exceeding Bitcoin at certain times. Total holdings have reached 5.8 million ETH, representing approximately 4.8% of the total ETH supply.
Twitter : @XBITDEX
Demand for Ethereum is also being supported by a growing number of Ethereum-focused corporate treasuries. Their model of earning native yields through staking and DeFi has expanded not only to itself but also to larger token ecosystems like Solana (SOL), Tron (TRX), and Ethena (ENA). Analysts at XBIT (DEX Exchange) stated, "Looking at holdings, the supply held by both small and large holders of BTC has gradually declined over the past year, as the market entered a period of distribution. Meanwhile, ETH is showing signs of reaccumulation, with a growing share of supply held by large holders and a continued rise in supply held by small holders."
The GENIUS Act, officially signed into law on July 18, establishes the first federal regulatory framework for fiat-pegged stablecoins in the United States. The act requires stablecoin issuers to maintain full reserve backing, with reserve assets held in low-risk, short-term U.S. Treasury bonds or cash, undergo regular audits, and obtain a license. This brings regulatory clarity and legitimacy to the stablecoin market, similar to the impact of the approval of spot Bitcoin ETFs.
Recently, the growth of stablecoin supply has significantly accelerated, with total supply exceeding $255 billion. Analysts at XBIT (DEX Exchange) believe this regulatory framework strengthens public trust in fiat stablecoins, lowers barriers to entry for new entrants, and fosters greater competition in the market. This is expected to drive down transaction costs, enhance the trading experience for consumers and businesses, and strengthen global demand for the US dollar. XBIT has already listed trading pairs with compliant stablecoins such as USDC and PYUSD and plans to integrate the first GENIUS Act-compliant stablecoins (such as USDtb). The platform will introduce zero-knowledge proof technology to protect privacy while meeting regulatory requirements.
According to data from the BOSS Wallet app, among existing stablecoin issuers, Circle and Paxos are best positioned to meet the Act's requirements, as USDC and PayPal USD (PYUSD) have long been fully backed by reserves and regularly audited. Circle is actively applying for a federal trust bank license, and other major issuers are also undergoing structural adjustments. Tether (USDT), which holds approximately 68% of the stablecoin market share, plans to launch a compliant stablecoin due to its long-standing operations outside the regulatory system and substandard reserve assets. The existing USDT will continue to operate overseas.
Twitter : @XBITDEX
The recent surge in the total crypto market capitalization to $4 trillion reflects growing confidence across the asset class. Demand from ETFs and corporate treasuries continues to outpace new supply, improving the supply-demand structure of both BTC and ETH. Valuation indicators suggest the market is not overheated. While the market remains dominated by strong ETF inflows and long-term holders, market leadership is gradually spreading. The XBIT.Exchange decentralized trading platform has integrated with major public chains such as Ethereum, Solana, and Tron, supporting cross-chain transactions. It offers a Layer 2 solution based on zk-Rollup technology, achieving low fees and high throughput. It also protects against MEV attacks through intelligent routing and order encryption, protecting user transactions from front-running attacks. This provides a more secure, efficient, and compliant trading experience for users worldwide.
