From AI-powered altcoins to Ethereum staking plays, the crypto market watch in July 2025 is buzzing with surprising winners and red-flag losers. Bitcoin has found relative stability, but under the surface, whale wallets are shifting positions, DeFi is seeing fresh capital, and memecoins are once again making noise.
The current Market Watch covers the strongest performers, biggest letdowns, emerging trends across NFT and DeFi sectors, institutional sentiment, and the macro signals that matter. Whether you’re trading daily or building long-term conviction, this breakdown will keep you one step ahead.
Key Takeaways
- When metaverse tokens have real-world use cases, like gaming minting (IMX), DAO-governed staking (APE), or virtual brand presence (MANA/SAND), they begin to hold durable value.
- July 2025 Was a Month of Divergence. While major coins like BTC and SOL saw temporary pullbacks, niche sectors like Real World Assets (RWAs) and AI-linked tokens surged.
- DeFi Projects Are Rebuilding Stronger. Protocols such as Aave V4, Lido, and Pendle are seeing renewed interest thanks to innovative tokenomics and real-world utility.
- Major filings and inflows from BlackRock, Fidelity, and ARK Invest are pointing toward deeper traditional finance integration into crypto markets.
Top Performing Coins This Week (with Stats)
While Bitcoin remains steady around the $118K mark, several altcoins have outperformed the majors this week, showing renewed investor interest in specific sectors, particularly AI, gaming, and Layer 2.
As of July 2025, here are the top 5 gainers (A week performance):
| Coin | Week Change % | Sector |
FET | +28.5% | AI Infrastructure |
| RNDR | +25.2% | GPU/Metaverse |
| LDO | +22.8% | ETH Staking |
| SUI | +20.4% | Layer 1 Blockchain |
| MEMEAI | +19.7% | AI Memecoin |
Analysts believe the surge in AI-linked tokens is partly driven by Meta’s recent AI rollout announcement and rising GPU demand across decentralized rendering networks. Additionally, rising ETH staking activity ahead of the Shanghai 2.0 update is pushing LDO and RocketPool (RPL) upward.
These gains, however, are occurring in a backdrop of reduced altcoin liquidity, which can exaggerate both rallies and retracements. Traders are advised to watch funding rates and open interest closely in case of reversal setups.
Biggest Crypto Losers of July, 2025
Not every project is riding the July tailwinds. Several coins posted negative weekly returns despite overall market stability, raising concerns about sector rotation and waning momentum.
Here are the top 5 underperformers as at July, 2025:
| Coin | % Loss | Sector |
| AR | -14.5% | Decentralized Storage |
| MATIC | -12.8% | Layer 2 Scaling |
| FLOW | -11.3% | NFT Infrastructure |
| PEPE2.0 | -10.7% | Memecoin |
| FIL | -9.6% | Storage |
Arweave (AR) and Filecoin (FIL) declined due to slowing usage metrics and competition from newer, faster storage protocols. MATIC’s dip followed concerns over declining TVL on Polygon zkEVM.
Meanwhile, NFT-native tokens like FLOW continue to lose ground as metaverse demand cools off, despite small gains in Web3 gaming.
DeFi Projects to Watch in 2025
As the broader market stabilizes, DeFi protocols are starting to draw attention again, not from retail hype, but from real yield, new tokenomics, and Layer 2 integrations. Here are three DeFi standouts currently, as at July 2025:
1. Lido Finance (LDO)
LDO continues its upward climb, driven by increased ETH staking demand and anticipation of the Shanghai 2.0 upgrade, which allows improved validator rewards and instant liquidity. On-chain data from Glassnode shows Lido now controls ~35% of all staked ETH.
The upcoming SSV Lido Module (SSVLM) is in development, introducing decentralized validator clusters to enhance staking decentralization and resilience on Ethereum’s Holesky testnet before a Q3 mainnet launch.
2. GMX
Over $130–140 billion total trading volume since inception, with daily revenues ranging from $80K to $500K during volatility spikes, often paying out 5–15% APR to stakers.
This decentralized perpetual exchange on Arbitrum is showing renewed trading volume, as traders seek alternatives to centralized platforms after the Bybit hack. GMX’s fee-sharing model is attracting DeFi-native whales again.
3. Pendle (PENDLE)
Pendle’s tokenized yield product is gaining traction as institutions explore fixed-rate crypto instruments. TVL has crossed $600M, up 15% from last week. These projects aren’t surging on memes, they’re delivering protocol revenue, real users, and DeFi-native innovation.
Its expansion into multi-chain support (Arbitrum, Base, Sonic, targeting Solana Q3 2025), Aave v3 integration for PT-USDe collateral, and institutional product pipeline shows its strategic roadmap for institutional on-chain fixed income.
The Recovery of NFT & Metaverse Tokens in 2025
After a slow start to the year, NFT and metaverse tokens are finally showing signs of resurgence, driven not by speculative hype, but by meaningful adoption and narrative shifts.
1. Immutable X (IMX)
0-3IMX climbed +9.2% this week, fueled by growing interest in Web3 gaming and new adoption metrics. The platform now hosts 380+ games, and Q1 2025 saw a 9× jump in new projects; one high-profile partnership with NetMarble helped IMX lead the Layer‑2 gaming segment.
With zero‑gas NFT minting and StarkEx security, IMX bridges mainstream gaming and blockchain. Positive regulatory signals toward Ethereum L2s are further lifting sentiment.
2. ApeCoin (APE)
1067-1APE rebounded +4.7%, bolstered by migration to ApeChain staking, which launched in April 2025. This update added flexible rewards and improved governance, drawing renewed community interest .
Transitioning staking off Ethereum reduced gas friction and increased accessibility. Whale wallets and on-chain TVL tracked stronger, showing institutional-grade interest.
3. Decentraland (MANA) & Sandbox (SAND)
1343-2Both tokens remained largely rangebound, but Metaverse Fashion Week in April 2025 spurred buzz: global brands showcased virtual fashion, and Decentraland introduced a theme Infinite Identities, attracting over 47 designers.
These high-profile events underline the growing intersection of virtual spaces with real-world fashion and brand identity. Sustained corporate collaborations suggest a slow-but-steady narrative rebuild.
Institutional Moves and ETF Developments in 2025
While the retail side of crypto buzzed over memecoins and DeFi trends, institutional strategies shifted in July 2025. The U.S. SEC’s greenlight on multiple spot Ethereum ETFs in June spurred $2.5B in inflows within weeks, per CoinDesk. This pushed Ethereum’s price up 14% in early July.
Top firms like BlackRock, Fidelity, and ARK Invest continued to expand their Web3 portfolios through partnerships, while Franklin Templeton quietly increased their investment into tokenized U.S. treasuries via Base and Polygon chains.
Additionally, tokenization platforms such as Matrixport and Backed Finance gained traction with European asset managers, especially those interested in real-world assets (RWAs) and yield-bearing stablecoins.
According to a July report from K33 Research, ETH-focused institutional products outpaced BTC products by 38% in terms of new inflows this month.
BlackRock and Fidelity’s Strategic Shift to Ethereum and RWAs in the Crypto Market
In July 2025, institutional giants BlackRock and Fidelity have pivoted their crypto investment focus more toward Ethereum (ETH) and tokenized real-world assets (RWAs).
While these firms initially held large BTC positions, the crash triggered a broader risk reassessment. Rather than liquidate everything, they rebalanced their portfolios, showing continued faith in blockchain-based infrastructure and staking protocols.
According to on-chain data trackers like Arkham Intelligence and reports from CoinDesk Pro, BlackRock moved over 5,362 BTC while significantly increasing ETH holdings by over 480,000 ETH, using Lido for staking. This shows that institutional interest isn’t dying; it’s evolving.
On the RWA side, BlackRock expanded exposure via Ondo Finance (a DeFi project bridging bonds to blockchain) and Franklin Templeton, which now tokenizes U.S. Treasury yields on Ethereum and Polygon. These moves underscore how traditional finance continues to blend with decentralized protocols.
What to Watch for in the Crypto Market in August 2025
With July now in the rearview, August opens with cautious optimism. While volatility remains, several trends point toward potential recovery and opportunities. Here’s what savvy investors should keep an eye on:
1. Continued ETF Momentum
Following July’s approval of two new Ethereum ETFs, there’s speculation around Solana and Chainlink-based ETFs gaining traction. Keep watch on U.S. SEC activity and institutional flows.
2. Layer 2 Dominance Is Rising
zkSync and Base have significantly outperformed expectations in July. Projects with real scalability solutions continue to draw liquidity from congested L1 chains.
3. DeFi’s Quiet Rebuild
Platforms like Aave v4, Pendle Finance, and even Upay (rising fast in Africa’s P2P DeFi market) are gaining organic traction without heavy marketing. These projects could lead a DeFi revival, especially with real-world asset integrations becoming viable.
4. Macro Watch
Based on interest rates and inflation, U.S. Fed and ECB inflation data in early August will influence risk appetite. Lower inflation may lead to more favorable market conditions for crypto inflows. According to The Block DeFi Development Forecast.
Conclusion
July painted a nuanced picture including clashes, pivots, and quiet builders rising. While major coins like BTC and SOL retraced, protocols with strong utility (e.g., L2s, RWA projects, DeFi relaunches) began carving the future. Institutional signals especially ETF plays, point to continued mainstreaming, even amidst volatility.
August won’t be easy, but it’s full of signals smart investors won’t want to miss. Which might include Track Layer 2 and DeFi TVL movement via Dune and DeFiLlama, follow ETF filings and institutional wallet movements via Arkham & CoinGlass.
Also add at least one promising low-cap with solid fundamentals to your watchlist. With these strategic steps, risks taken will show promising results.
Frequently Asked Questions [FAQs]
1. Which crypto sectors are trending in July 2025?
Sectors showing strong growth include DeFi, Real World Assets (RWAs), AI-integrated crypto, and Layer 2 scaling solutions on Ethereum.
2. What are the top-performing coins in July 2025?
Tokens like Morpheus Network (MNW), Ronin (RON), Gensyn (GSYN), and Pendle (PENDLE) have gained attention for their innovative use cases and community traction.
3. Why are RWAs becoming more popular?
Real World Assets bridge traditional finance and crypto, offering more stability and tangible value. Institutions are increasingly allocating capital to projects like Ondo Finance and Centrifuge.
4. What are some promising DeFi projects to watch?
Aave V4, Lido, Pendle, and Frax Finance are showing resilience and innovation in a post-crash market environment.
5. Are institutions really investing more in crypto in 2025?
Yes. Major players like BlackRock, ARK Invest, and Fidelity have filed for or expanded their crypto ETFs, and are allocating to Ethereum and DeFi-linked instruments.
