The crypto market kicked off 2025 with strong momentum, driven largely by a landmark regulatory development: the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs). This pivotal moment not only boosted investor confidence but also triggered a ripple effect across multiple on-chain and market metrics. In this deep dive, we analyze 12 key charts that illustrate the state of the crypto ecosystem in January—highlighting trends in trading volume, network activity, stablecoin dynamics, and derivatives markets.
Whether you're a seasoned trader or a long-term investor, understanding these metrics can offer valuable insights into market sentiment and potential future trajectories.
👉 Discover how market-moving events create new trading opportunities.
Bitcoin and Ethereum On-Chain Activity Surge
The approval of 11 spot Bitcoin ETFs in January served as a major catalyst for on-chain transaction growth. With institutional and retail investors gaining easier access to Bitcoin through regulated products, demand surged—reflected clearly in blockchain data.
In January, the adjusted on-chain transaction value for Bitcoin and Ethereum combined rose 8.8% to $357 billion. Bitcoin led the charge with a 10.6% increase, while Ethereum followed at 6%. This uptick indicates heightened economic activity and growing adoption of both networks as settlement layers.
Notably, "adjusted" transaction value filters out spam and dust transactions, offering a cleaner view of real economic throughput. The sustained growth suggests that ETF inflows translated into tangible network usage rather than just speculative trading.
Stablecoin Volumes Hit New Highs
Stablecoins remain the backbone of crypto liquidity, and their usage soared in January. The adjusted stablecoin on-chain transaction volume jumped 22.2% month-over-month, reaching $742.6 billion—a strong signal of increased capital movement within the ecosystem.
Simultaneously, the total stablecoin supply expanded by 4.1% to $125.8 billion, reflecting growing demand for dollar-pegged assets across exchanges, DeFi platforms, and peer-to-peer transactions.
Dominance remains concentrated among top players:
- USDT (Tether) holds 77% market share, now growing for five consecutive months.
- USDC (Circle) maintained steady growth, capturing 18.6% of the market.
This consolidation underscores trust in established issuers amid ongoing regulatory scrutiny, reinforcing their role as primary conduits for value transfer in crypto markets.
Miner and Validator Revenue Trends
While broader metrics showed growth, Bitcoin miner revenue told a different story. In January, miner income dropped 13.6% to $1.35 billion, primarily due to lower fees and increased competition in block production.
This dip may reflect short-term volatility rather than a structural decline—especially as ETF-driven demand could eventually lead to higher network congestion and fee pressure.
On the Ethereum side, staking rewards continued their slow but steady climb. Validator income rose 1.4% to $1.87 million, benefiting from consistent network usage and yield accrual mechanisms post-merge.
Ethereum’s shift to proof-of-stake continues to provide reliable passive income for participants, supporting long-term network security and decentralization.
Ethereum Burns Over 75,000 ETH in January
One of Ethereum’s most powerful deflationary mechanisms—the EIP-1559 fee-burn—remained active throughout January. The network burned 75,037 ETH, worth approximately $180 million at current prices.
Since EIP-1559 launched in August 2021, over 3.97 million ETH (valued at $10.98 billion) have been permanently removed from circulation. This ongoing reduction in supply contributes to Ethereum’s increasingly scarce asset narrative—an attractive feature for investors concerned about inflation.
👉 See how real-time data reveals hidden market trends before they go mainstream.
NFT Market Shows Resilience
Despite lingering skepticism about long-term viability, the NFT sector demonstrated resilience in January. Ethereum-based NFT trading volume increased by 6.2%, reaching $828.8 million.
This growth occurred against a backdrop of improving macro conditions and renewed interest from institutional players entering via tokenized art and IP projects. While still far from 2021–2022 peaks, the trend suggests that NFTs are evolving into more sustainable use cases beyond speculative trading.
Centralized Exchange Spot Volumes Continue Upward Trajectory
Compliance continues to pay off for regulated platforms. Spot trading volume on compliant centralized exchanges (CEX) rose 4.9% in January to $6.281 trillion.
This growth aligns with the broader institutionalization of crypto markets—investors prefer regulated venues when deploying large capital, especially following ETF approvals.
Market share distribution among major exchanges:
- Binance: 71% (slight decline from December)
- Coinbase: 12.1%
- Kraken: 4.9%
- LMAX Digital: 3.7%
While Binance maintains dominance, Coinbase’s strong presence highlights its advantage as a U.S.-regulated platform benefiting directly from ETF-related activity.
GBTC’s Transformation Fuels Record Trading Volume
Grayscale’s Bitcoin Trust (GBTC), once a dominant but illiquid vehicle, underwent a transformative shift after converting into a spot Bitcoin ETF.
As a result, its daily average trading volume surged by 302.7% in January, reaching $784 million. This dramatic increase reflects improved liquidity, tighter spreads, and renewed investor interest now that shares trade more efficiently on public markets.
The GBTC conversion marks a critical milestone in bridging traditional finance with digital assets—proving that regulatory clarity can unlock massive market potential.
Futures Markets: Mixed Signals Amid Rising Spot Demand
Despite strong spot market performance, futures markets showed mixed results.
- Bitcoin futures open interest declined by 5.9%
- Ethereum futures open interest fell slightly by 1.5%
These drops may indicate traders locking in profits or shifting focus from leveraged positions to direct ETF holdings.
However, Bitcoin futures trading volume grew 14.1%, hitting $1.1 trillion, signaling continued strong demand—even if open positions contracted temporarily.
Meanwhile, CME Bitcoin futures open interest rose 3.1% to $5 billion**, with daily average volume up **29.2%** to **$3.44 billion—highlighting growing institutional participation through traditional financial infrastructure.
Ethereum Futures and Options Reach New Milestones
Ethereum derivatives also saw positive momentum:
- Monthly average futures trading volume climbed to $511 billion, up 0.9%
- Options open interest: Bitcoin decreased by 6.4%, but Ethereum surged by 6.5%
- Bitcoin options trading volume: Increased 5.2% to $39.9 billion, a new all-time high
- Ethereum options trading volume: Jumped 17.3% to $17.9 billion, also reaching an ATH
These records suggest rising hedging demand and increasing sophistication among traders managing exposure to both assets.
Frequently Asked Questions (FAQ)
Q: What caused the surge in crypto market activity in January?
A: The primary driver was the U.S. SEC's approval of 11 spot Bitcoin ETFs, which brought institutional legitimacy and increased capital inflows into the ecosystem.
Q: Why did Bitcoin miner revenue decrease despite rising prices?
A: Miner revenue depends on block rewards and transaction fees. In January, lower on-chain congestion reduced fee income, outweighing price gains.
Q: Are stablecoins safe during market volatility?
A: Leading stablecoins like USDT and USDC have proven resilient due to reserve transparency and regulatory compliance, making them trusted tools for preserving value.
Q: How does EIP-1559 affect Ethereum’s supply?
A: It burns a portion of transaction fees, permanently removing ETH from circulation and creating deflationary pressure when network activity is high.
Q: What does rising options volume indicate about market sentiment?
A: Record-breaking options trading suggests growing demand for hedging strategies and structured products—often a sign of maturing markets.
Q: Is the decline in futures open interest a bearish signal?
A: Not necessarily. A drop can reflect profit-taking or a shift toward spot holdings (like ETFs), especially during periods of strong regulatory progress.
With spot Bitcoin ETFs now live and institutional adoption accelerating, January’s data paints a picture of a maturing digital asset class. From rising stablecoin volumes to record options activity, the foundations for sustained growth appear solid.
👉 Stay ahead of the next market cycle with real-time analytics and advanced trading tools.