Crypto ETF growth & memecoin boom in early 2025

The introduction of the Bitcoin ETF has marked a significant point of evolution for the cryptocurrency market, as reflected in Binance Australia's latest Monthly Markets Insights report for February.

The report indicates a strong start to 2025 for the cryptocurrency sector, with the total market capitalisation reaching USD $3.76 trillion in January, rebounding from a December correction.

Bitcoin has seen a noteworthy increase of 11.7%, supported by the pro-crypto stance of the newly inaugurated U.S. administration and discussions regarding potential inclusion in central bank reserves.

However, the upward trajectory faced some disruption when DeepSeek, a new AI model, overtook ChatGPT as the most downloaded app, leading to a 2% decline in the crypto and US equity markets. This volatility has persisted through February, amid concerns about potential U.S. tariff policies affecting risk assets globally.

Marking the one-year anniversary since the approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission, the report notes that this development has been a pivotal stride in the adoption of cryptocurrency amongst institutional investors. Over USD $50 billion has been channelled into Bitcoin ETFs, with 47 active crypto ETF filings now in place across 16 distinct asset categories, including memecoin-based ETFs.

James Quinn-Kumar, Director of Community Engagement at Binance Australia, commented, "The launch of Bitcoin ETFs has integrated crypto into mainstream portfolios, opening new opportunities for both institutions and retail investors. As more coins are considered for token-based ETFs, 2025 is set to be another transformative year for the industry." Institutional interest has also been buoyed by discussions around a national crypto reserve and regulations concerning stablecoins.

Quinn-Kumar further remarked on the implications of former President Trump's moves to establish a regulatory framework for cryptocurrencies, stating, "The crypto industry has long navigated a regulatory patchwork that limited innovation and drove capital and talent offshore. The U.S. has a major role to play in shaping global crypto policy, and clear, innovation-friendly regulation would provide much-needed certainty, not just for American companies, but for the entire industry."

The report also highlights the influence of the growing memecoin phenomenon on market dynamics, with over 37 million new tokens being launched in January. This trend is anticipated to triple by the end of the year, consequently increasing the demand for high-throughput networks like Solana, which saw trading volumes that were 200% higher than Ethereum for the fourth successive month.

Solana's growth has been accelerated by its position in memecoin trading, AI-driven assets, and DeFi protocols like Jupiter, further amplified by the launch of $TRUMP and $MELANIA memecoins. Despite an influx of new tokens, the leading 100 tokens still account for approximately 98% of the total market capitalisation.

In Australia, XRP continues to be the most actively traded asset, showcasing strong retail interest. Memecoins have also gained traction, with the $TRUMP memecoin attracting almost as many traders as Bitcoin in January.

"The memecoin phenomenon has certainly captured global attention, especially with the launch of $TRUMP," said Quinn-Kumar. "The local pickup in trading demonstrates how political narratives can influence market sentiment, even overseas. The influence of Trump's administration on multiple aspects of the cryptocurrency sector in just the first three months sets the stage for what could be a very eventful next four years."