Welcome to our May 2025 Monthly Crypto Market Recap!

Bitcoin traded between $107K and $112K throughout May, reaching a new all-time high of $112,509.65 mid-month. The rally was fueled by institutional inflows, favorable U.S. regulatory developments, and the establishment of a Strategic Bitcoin Reserve by the U.S. government. Ethereum experienced a steady climb from $2.4K to $2.9K, bolstered by the successful Pectra upgrade on May 7, which enhanced scalability and staking capabilities.

In the crypto space, Coinbase acquired Deribit for $2.9 billion, marking a significant expansion into crypto derivatives and securing a Dubai license for broader jurisdictional reach. Trump Media announced a $2.5 billion Bitcoin treasury initiative, one of the largest public firm allocations to BTC, with custody managed by Crypto.com and Anchorage Digital. Meanwhile, Circle filed for a public listing on the NYSE under the ticker “CRCL,” with BlackRock committing to purchase around 10% of the IPO, reinforcing confidence in stablecoin infrastructure and institutional crypto adoption.

On the macro front, the US and China agreed to a 90-day tariff truce, cutting US tariffs on Chinese goods to 41% and China’s to 28%, with Treasury Secretary Scott Bessent meeting Chinese officials in Switzerland to resume talks. Amid these developments, the US and UK finalized a trade framework deal that included customs fast-tracking and lower trade barriers, setting a precedent for similar agreements with other allies.

In other news, China’s stimulus efforts to boost domestic consumption and technology sectors began to show results, with JD.com reporting its fastest revenue growth in three years, fueled by government support and a push into food delivery, while Tencent benefited from a rebound in consumer activity. At the same time, U.S. export restrictions on AI chips, specifically the H20 model, cut off an estimated $8 billion in potential Nvidia revenue. In response, Nvidia launched a lower-spec Blackwell chip tailored for China and deepened its R&D ties with Europe, highlighting both the challenges of China’s tech decoupling and the strategic adjustments by global firms navigating geopolitical constraints.

Join us as we explore May’s crypto market and the key catalysts that fueled this month’s top performers. Stay ahead with our comprehensive monthly market recaps at TRHX Research!

Memecoins Surge; Dogwifhat (WIF) ⏶78.24%, Pepe (PEPE) ⏶55.23%, Dogecoin (DOGE) ⏶30.92%

May 2025 saw a continued resurgence in memecoins, with Dogwifhat (WIF), Pepe (PEPE), and Dogecoin (DOGE) posting significant gains. The memecoin sector, often driven by cultural trends and speculative trading, surged in tandem with broader market optimism. Memecoins, long dismissed as jokes, are increasingly seen as high-beta plays for traders looking to capture outsized returns during risk-on cycles.

This month, the rally was fuelled by multiple catalysts. Firstly, Bitcoin’s new all-time high above $111K likely triggered a wave of capital rotation into altcoins, with memecoins leading the charge. Secondly, renewed pro-crypto sentiment from the Trump administration, including plans to raise $3 billion for crypto investments, likely improved overall market confidence. Regulatory tailwinds—including an overall more lenient SEC stance on memecoins—also helped reduce overhangs. 

Looking at individual performance: WIF broke past $1 and rallied 280% from April lows, driven by social hype and rising liquidity. PEPE maintained steady gains despite broader volatility, gaining 9% in the last week of May. DOGE saw renewed attention from retail traders and now targets $0.50 by year-end, according to several technical forecasts. As long as macro conditions remain favourable and cultural engagement persists, memecoins are likely to remain at the forefront of crypto speculation in general.

Hyperliquid (HYPE) ⏶86.43%

Hyperliquid is a decentralized exchange (DEX) built on its own Layer-1 blockchain, designed to combine the speed and user experience of centralized exchanges with the transparency and autonomy of DeFi while offering low fees, 1-click trading, and support for spot and perpetual derivatives. Hyperliquid has positioned itself as a decentralised alternative to centralised giants like Binance, Bybit, and OKX. Its infrastructure and user experience improvements have been key factors in attracting both institutional and retail traders.

The recent surge in HYPE’s price is largely driven by robust growth in Hyperliquid’s core fundamentals. One of the most striking indicators of this momentum is the platform’s Open Interest (OI), which reached an all-time high of $9.31 billion on May 23rd—more than double its previous peak from December last year. 

This figure now rivals the OI levels seen on major centralized exchanges like OKX, signaling that Hyperliquid is becoming a serious contender in the derivatives trading space. The surge in trading activity has also translated into substantial protocol revenues, with Hyperliquid now ranking 8th in 30-day revenue on DeFi Llama, which surpasses L1s like Tron, Solana, and Ethereum. This strong on-chain performance is a clear reflection of the growing user base and sustained demand for the platform’s trading services.

Adding to this momentum is the influence of prominent key opinion leaders (KOLs) such as James Wynn, who has been actively trading on Hyperliquid with high-visibility positions reaching into the hundreds of millions. His trading activity and liquidation levels have become closely watched metrics within the crypto community, frequently discussed and dissected across Twitter. Wynn has created a viral effect, driving even more attention and users to the platform as traders look to follow or front-run these large positions. The combination of strong fundamentals and viral social traction has positioned Hyperliquid, and by extension, HYPE, as one of the most compelling narratives in DeFi today.

Aave (AAVE) ⏶62.48%

Aave is a decentralized lending and borrowing protocol built on various blockchains, allowing users to lend their crypto assets to earn interest or borrow against their holdings without relying on a centralized intermediary. Aave introduced innovative features such as flash loans (instant, uncollateralized loans). Governed by the AAVE token, the protocol allows holders to vote on key decisions, contributing to its decentralized development and evolution.

The recent surge in AAVE’s token price this month can be largely attributed to the market’s positive reaction to the buyback program approved and executed by the Aave DAO in late April. This strategic initiative has introduced consistent buying pressure on the token, with the protocol’s fee collector contract steadily accumulating AAVE from the open market. To date, over $10 million worth of AAVE has already been repurchased, and the momentum continues daily as protocol revenues are funneled into the buyback. 

Injective (INJ) ⏶41.42% 

Injective (INJ) is an open, interoperable Layer 1 blockchain built specifically for DeFi applications, offering advanced infrastructure and modular tools for developers to build trading platforms, lending protocols, and derivatives markets. Its native token, INJ, plays a central role in the ecosystem by enabling staking for network security, participating in governance decisions, paying transaction fees, and serving as collateral in derivatives trading. A key feature of Injective is its deflationary mechanism, where 60% of exchange fees are used to buy back and burn INJ, reducing supply over time. The protocol is known for its focus on scalability, decentralization, and developer incentives, making it a competitive player in the DeFi space.

The recent price surge in INJ may be partially driven by a beta effect stemming from Hyperliquid’s strong performance this month, as Injective is seen as a direct competitor in the Layer 1 space focused on trading and DeFi infrastructure. With investors seeking exposure to similar narratives, Injective has gained renewed attention. Additionally, the protocol has achieved a significant milestone of surpassing 2 billion cumulative on-chain transactions, underscoring its growing adoption and activity. 

Ethereum (ETH) ⏶42.82%

Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts. Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014.

Pectra hard fork on May 7, 2025, stands as the primary catalyst for Ethereum’s performance this month. This highly anticipated upgrade activated on mainnet at epoch 364032 and introduced several meaningful enhancements: improved smart account wallet UX, a doubling of L2 data storage blob capacity, and validator experience improvements. By streamlining the user and developer experience while enhancing scalability, Pectra strengthens Ethereum’s position as the leading smart contract platform amid rising competition. 

A major catalyst for Ethereum’s positive market sentiment this month was SharpLink Gaming’s $425 million private placement and the announcement of its Ethereum Treasury Strategy. Backed by industry leaders including Consensys, Pantera Capital, Galaxy Digital, and Electric Capital, the deal signaled institutional confidence in Ethereum as a strategic reserve asset. Importantly, Ethereum co-founder Joseph Lubin will join SharpLink’s board as Chairman following the close, further underscoring the long-term commitment. The move not only validates ETH’s role as a programmable store of value but also represents a breakthrough in mainstream corporate adoption, reinforcing Ethereum’s positioning amid broader narratives around crypto treasury management.

Quant Network (QNT) ⏶39.49%

Quant (QNT) is a distributed ledger technology (DLT) service provider focused on enhancing interoperability between blockchain networks through its flagship product, Overledger — the world’s first API gateway for blockchains. Unlike traditional blockchains, Overledger is not a blockchain itself but a universal API layer that enables seamless communication and data transfer across diverse DLTs. 

The recent surge in QNT’s price can largely be attributed to the European Central Bank’s (ECB) announcement on May 5th, selecting Quant as one of the key pioneer partners for its Digital Euro initiative. This partnership, which includes nearly 70 other participants ranging from fintechs to major banks, marks a significant validation of Quant’s expertise in distributed ledger technology and its Overledger platform. Quant will play a critical role in embedding programmability into the ECB’s Digital Euro, including conditional payments and secure wallet-level transaction logic. The news has been interpreted by the market as a major step forward for institutional adoption of Quant’s infrastructure, highlighting its deep involvement in foundational digital currency projects such as the UK’s Regulated Liability Network and BIS & Bank of England’s Project Rosalind. This formal recognition and integration into the future of European digital payments have significantly boosted investor confidence and contributed to the recent rally in QNT’s price.

Virtuals Protocol (VIRTUALS) ⏶37.47%

Virtual Protocol is pioneering the co-ownership layer for AI agents in gaming and entertainment. By leveraging blockchain technology, the protocol facilitates the tokenization and co-ownership of these AI agents, making them accessible and investable like any other productive asset. The VIRTUAL token underpins the economy of Virtual AI Agents, being used as the source of routing currency, governance, liquidity pairing, and participation within the ecosystem. It ensures that users can seamlessly co-own and interact with these AI agents while fostering a decentralized and scalable model for co-ownership. Through this integration, Virtual Protocol is unlocking new dimensions of engagement and monetization in the AI-driven gaming and entertainment industries.

The Virtual Genesis Launch served as a pivotal catalyst for $VIRTUAL in this month, driving significant user engagement and token commitment. Designed as a fair, contribution-based launchpad for AI agent protocols, the initiative recorded over 18,900 transactions and 8,300 active addresses within two weeks, peaking on May 5 with 2,274 transactions and a net inflow of 259,300 $VIRTUAL. The hype around VIRTUAL was supercharged by a major feature from Bankless, which spotlighted Virtuals’ broader vision — the Agent Commerce Protocol (ACP), dubbed the “SWIFT of AI agents.” By enabling interoperable, onchain agent collaboration and transactional workflows, ACP positioned Virtuals at the core of the emerging agent economy. Additionally, the announcement of Project 69, a radically novel token experimentation framework with a 69-day opt-in window for founders, reinforced the platform’s commitment to innovation and accountability.

Jupiter (JUP) ⏶29.51%

Jupiter is the largest decentralised exchange (DEX) aggregator on Solana. Over the past year, it has grown to become the second-largest Solana-based DeFi protocol, boasting over $2.7 billion in deposits. Now, Jupiter is expanding beyond Solana with Jupnet, a new omnichain network designed to unify liquidity and trading across multiple blockchains.

The announcement of Jupiter Lend, unveiled at the Solana Accelerate conference, is a major catalyst that drove JUP’s price up by over 12% on the day of the reveal. As Solana’s dominant DEX aggregator, Jupiter’s move into lending significantly expands its DeFi footprint, making it a multi-vertical protocol akin to industry giants like Aave. This strategic expansion is powered by a partnership with Fluid, a proven Ethereum-native liquidity layer, now bridging into Solana. With standout features like 90% loan-to-value ratios and ultra-low 0.1% fees enabled by a bespoke liquidation engine, Jupiter Lend is positioning itself as a technically superior money market.

Closing Remarks 

June is shaping up to be a pivotal month for crypto as political and regulatory developments take center stage. The bipartisan GENIUS Act, currently under Senate debate, is expected to gain further traction this month, potentially setting the foundation for a comprehensive regulatory framework around stablecoins. This progression could signal to institutional investors that U.S. policymakers are serious about integrating digital assets into the mainstream financial system. Additionally, with continued political positioning from Republican leaders—highlighted by pro-crypto messaging at the recent Bitcoin 2025 conference—regulatory clarity and political support may converge in June, acting as a significant catalyst for renewed bullish momentum across the crypto market.

The coming month features key crypto conferences that could shape market narratives and innovation. ICBC 2025 in Pisa (June 2–6) will spotlight blockchain research on scalability and consensus. Crypto Valley in Zug (June 5–6) brings regulators and DeFi leaders together to discuss adoption and policy. BTC Prague (June 19–21), Europe’s largest Bitcoin-only event, will focus on self-custody, sound money, and Bitcoin’s global role.

As June unfolds, we are closely monitoring these developments and remain optimistic about the market’s direction. Stay informed by following TRHX Research for in-depth crypto analysis and real-time updates.

Disclaimer

This publication is provided for informational and entertainment purposes only. Nothing contained in this publication constitutes financial advice, trading advice, or any other advice, nor does it constitute an offer to buy or sell securities or any other assets or participate in any particular trading strategy. This publication does not take into account your personal investment objectives, financial situation, or needs. TRHX does not warrant that the information provided in this publication is up-to-date or accurate. 

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