A recent report from blockchain intelligence firm TRM Labs confirms that cryptocurrency transaction volume in the US surged by approximately 50% in the first half of 2025 compared to the same period in 2024, reaching over $1 trillion.

This marks the US as the world’s largest crypto market by absolute volume, driven by a combination of retail investor enthusiasm and institutional momentum. The growth reflects a multi-year trend, with stablecoin transactions which account for about 30% of total crypto volume jumping 83% year-over-year to a record $4 trillion by August 2025.

Several policy and market shifts under the Trump administration have fueled this boom. The SEC launched “Project Crypto” in August 2025 to position the US as the “crypto capital of the world,” ending prior enforcement actions.

In April, the Department of Justice scaled back crypto prosecutions. The GENIUS Act, signed in July, established stablecoin reserve requirements. Exchange web traffic rose 30% in late 2024 and early 2025, signaling strong professional interest.

Individual-led transactions grew over 125% from January to September 2025, with memecoins playing a key role in onboarding new users. While the US leads in total volume, grassroots adoption is hotter elsewhere: India: Fastest-growing region in South Asia, with higher per-capita usage rates.

Egypt, Morocco, Algeria, and Tunisia rank in the global top 50 for crypto usage, despite bans. Europe: Ownership jumped sharply, e.g., UK from 18% to 24% and France from 18% to 21% of adults.

The $1 trillion transaction volume underscores crypto’s growing role in the US economy. Institutional inflows and retail enthusiasm 125% growth in individual-led transactions signal increased liquidity and market maturity, potentially attracting more traditional investors and boosting related industries like blockchain tech and fintech.

With stablecoins driving 30% of volume and growing 83% year-over-year, they’re becoming a backbone for practical applications like remittances, cross-border payments, and DeFi. This could challenge traditional financial systems, especially for dollar-based transactions.

While retail participation is up, the concentration of crypto wealth may exacerbate wealth gaps if speculative gains favor early adopters or high-risk investors. The Trump administration’s moves—SEC’s “Project Crypto,” DOJ’s reduced enforcement, and the GENIUS Act—signal a friendlier regulatory environment.

This could sustain growth but risks oversight gaps, potentially leading to fraud or market manipulation if not balanced with consumer protections. The US’s push to be the “crypto capital” may pressure other nations to clarify their regulations, fostering a global race for crypto-friendly policies.

However, this could also spark tensions with jurisdictions like the EU, which prioritize stricter oversight. Surging transaction volumes complicate tax reporting and anti-money laundering (AML) enforcement, requiring updated frameworks to track and regulate high-frequency crypto activity.

Rising ownership from 20% to 22% of US adults and a 30% spike in exchange traffic reflect crypto’s shift from niche to mainstream. Memecoins, despite volatility, are onboarding younger and less crypto-savvy users, reshaping financial literacy and investment culture.

While the US leads in volume, grassroots adoption is stronger in regions like India and North Africa. This highlights a divide where developing nations use crypto for necessity (e.g., remittances, inflation hedges), while US growth leans speculative, potentially influencing global perceptions of crypto’s utility.

The retail surge, particularly in memecoins, raises concerns about speculative bubbles, which could erode trust if crashes occur, especially among new investors drawn by hype. Crypto’s growth offers inclusion for underbanked populations but also exposes users to volatility and scams, especially without robust education or regulation.

Increased adoption could accelerate blockchain innovation, from DeFi to tokenized assets, but may strain infrastructure. The US’s crypto embrace could strengthen its financial dominance but risks alienating allies with stricter policies, impacting global trade and sanctions enforcement.

These implications suggest a transformative moment for crypto in the US, with benefits tied to innovation and access but tempered by risks of instability and regulatory challenges.

Other 2025 reports align on modest US ownership gains from 20% to 22% of adults, but TRM’s volume metric highlights the scale of activity. Overall, crypto’s mainstreaming continues, with stablecoins enabling practical uses like remittances and payments.

U.S. stocks rose slightly on Thursday, with cautious gains across major indexes as disappointing quarterly results from Tesla and IBM tempered optimism from other megacap tech firms, while simmering U.S.-China trade tensions kept risk appetite subdued.

At 11:31 a.m., the Dow Jones Industrial Average gained 70.69 points, or 0.15%, to 46,661.10. The S&P 500 advanced 25.17 points, or 0.38%, to 6,724.57, while the Nasdaq Composite climbed 152.12 points, or 0.67%, to 22,892.52.

Tesla’s shares fell as much as 5% after the company missed third-quarter profit estimates, even though it slightly beat revenue expectations. The report marked the start of the so-called “Magnificent Seven” earnings parade, setting the tone for a closely watched tech reporting season. Analysts said the revenue beat did little to offset concerns about shrinking automotive margins amid rising production costs and growing competition from Chinese electric vehicle makers.

But as Tesla stumbled, other technology giants moved higher, led by bargain-hunting in megacap names. Nvidia, Alphabet, Amazon, and Meta each rose about 1%, while Broadcom gained 1.4%. Together, the “Magnificent Seven” group — which represents nearly 35% of the S&P 500’s total weight — helped buoy the broader market.

Honeywell rose 7% after raising its 2025 profit forecast, even as it prepares to spin off its advanced materials division. The upbeat projection helped keep the Dow positive. However, IBM weighed on the index, slipping 2.5% after reporting a slowdown in its key cloud software unit, suggesting weaker demand in enterprise spending.

Market analysts said that while most companies have exceeded analysts’ earnings expectations so far this quarter, their cautious forward guidance has kept equity gains restrained. Investors, still wary of elevated valuations, are looking for stronger confirmation that corporate earnings can sustain momentum through the year’s end.

“Earnings data this quarter to this point has probably been even a little bit more valuable than it might be in other quarters, simply because of the lack of other data on the state of the U.S. economy,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors.

That “data drought” has been deepened by the ongoing U.S. government shutdown, now in its 23rd day, which has frozen several key economic reports, including the latest jobless claims. The absence of real-time data has left investors “flying blind,” according to analysts, increasing the focus on Friday’s core CPI report — expected to hold steady at 3.1% — as the clearest signal for the Federal Reserve ahead of its policy meeting next week.

Markets are already pricing in a 25-basis-point rate cut, with traders expecting another reduction in December as inflation pressures cool. The Fed’s recent guidance suggests policymakers are leaning toward maintaining flexibility amid lingering uncertainty about the pace of economic slowdown.

Geopolitical jitters also weighed on sentiment after Reuters reported that the Trump administration was considering sweeping new restrictions on high-tech exports to China, in response to Beijing’s latest curbs on rare-earth shipments. The report reignited concerns of an escalation in the trade dispute between Washington and Beijing, which investors fear could disrupt supply chains and dampen global growth.

Energy stocks climbed 1.4% after oil prices rose following new U.S. sanctions targeting Russia’s energy exports. Chevron, Exxon Mobil, and Halliburton each gained between 1% and 2%, providing another lift to the S&P 500.

Meanwhile, the quantum computing sector rallied sharply after the Wall Street Journal reported that the Trump administration was in talks with several companies to take equity stakes in exchange for federal funding. IonQ jumped 12%, D-Wave Quantum surged 18%, and Rigetti Computing gained 13%, marking one of the day’s most active segments.

The day’s biggest decliner was Molina Healthcare, whose shares plunged 21.4% after the insurer slashed its annual profit forecast, citing higher medical costs. Peer Centene fell 6.9%, dragging down the broader healthcare sector.

On market breadth, advancing issues outnumbered decliners by a 1.48-to-1 ratio on the New York Stock Exchange and by 1.53-to-1 on the Nasdaq. The S&P 500 posted 10 new 52-week highs and four new lows, while the Nasdaq recorded 45 new highs and 62 new lows.

Traders described the session as one defined by “measured optimism,” where gains were underpinned by selective buying rather than broad enthusiasm. With U.S. economic data frozen, geopolitical risks mounting, and the Fed poised to decide on another rate cut, investors are treading carefully — waiting for the next clear signal that the rally still has room to run.