The cryptocurrency sector’s market value hit $4 trillion on Friday, according to CoinGecko — a milestone that underscores its transformation from a niche asset class to a central part of the global investment landscape.
A wave of renewed investor optimism, regulatory clarity in key markets, and rising institutional inflows has propelled the crypto sector to this record valuation.
In a major regulatory shift, US President Donald Trump signed a law on Friday establishing a formal framework for US dollar-pegged cryptocurrencies, known as stablecoins. This development could pave the way for stablecoins to become a mainstream method of making payments and transferring money.
The $4 trillion milestone reflects the crypto industry’s remarkable evolution since its early speculative and fringe beginnings. With growing interest from asset managers, the launch of new exchange-traded products, and broader adoption among retail and corporate users, digital assets are increasingly becoming a focal point in global financial discussions, Reuters reported.
The valuation surge comes amid a perfect storm of positive catalysts: renewed investor confidence, clearer regulations in major economies, and rising institutional participation.
Stablecoins, designed to maintain a fixed 1:1 value with fiat currencies, are widely used by crypto traders to move funds between tokens. Their adoption has soared in recent years, and proponents say they could soon power instant global payments.
“The Genius Act will go down in history as a law that served as a foundational step in the mainstreaming of crypto as an asset class,” said Chris Perkins, president of CoinFund.
Corporate treasury allocations to bitcoin are also accelerating, with an increasing number of public companies adding the cryptocurrency to their balance sheets as a long-term store of value.
The sector was last trading at a combined market value of $3.92 trillion, as bitcoin — the world’s largest cryptocurrency — dipped 1.8%. Earlier this week, bitcoin surpassed the $120,000 mark, setting a new record. Brokerage firm Bernstein forecasts the token could reach $200,000 by the end of 2025.
Ether, the second-largest crypto token, was last up 4.5% and has more than doubled in value over the past three months. The ongoing rally has also lifted crypto-linked equities, with Coinbase and Robinhood reaching all-time highs on Friday.
Shares of Coinbase were last up 1%, while Robinhood — which also facilitates crypto trading — gained 3%.
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