The crypto market, true to its volatile nature, had a rollercoaster ride in 2025. From its all-time high valuation of $4.20 trillion in October 2025 to a low of $2.96 trillion on December 30, 2025, the cryptocurrency market experienced a year marked by sharp fluctuations, keeping investors on their toes. At the same time, the year saw the institutional engagement hitting an unprecedented depth (a majority of global hedge funds now hold crypto) as global economic superpowers like the U.S. moved fast towards the formalisation of crypto into mainstream.

This led to a major shift in perception toward crypto, and it's no longer just a trading digital currency, but an entirely new financial universe. Going beyond trading, the crypto now comprises much more: payments, remittances, lending and borrowing, decentralised exchanges, stablecoins, tokenised real-world assets, and on-chain financial infrastructure. All this has led to the reimagination of an entirely new financial ecosystem, which, along with the emergence of AI, has the potential to reshape economies in ways people never imagined two years back.

In terms of real-world assets beyond trading prices, real-world asset tokenisation emerged as DeFi's fastest-growing category, reaching $15 billion. Ethereum overtook BTC in transaction revenue for several months. Solana crossed $20 billion in DeFi activity, as per the CoinDCX annual report for 2025. But first, let's talk about how two of the major digital currencies fared in 2025.

The crypto market's original currency, Bitcoin (BTC), which holds a 58.8% share in the entire crypto market, experienced both major highs and major lows. After Trump came to power in the US, Bitcoin crossed $100,000, rising 9.43% in the first 20 days of 2025. On October 6, it hit $126,080, a phenomenal 33% YTD gain. However, after touching an all-time high of $126,000, the BTC prices saw a sharp correction, triggered by Trump’s threat to impose new trade tariffs on China. The shockwaves erased around $19 billion in leveraged positions.

Ethereum (ETH), which has the second-largest share (12.1%) of the crypto market, dipped by 20.62% in the past year. Since its September high of $4,946, ETH fell 37% to $3,109.07 on December 15. Its market capitalisation was down to $374.4 billion. Other key digital coins also followed a similar trajectory, leading to a major decline in their market cap by 2025-end.

Market leader BTC's current price point is $87,617.41 (December 30, 2025), a 19.27% decline in the past 6 months. "While positive developments such as a pro-crypto stance in the US, growing corporate adoption of Bitcoin as a treasury asset, and the approval of altcoin ETFs supported market sentiment, macro uncertainties played a role in recent weakness. Factors like geopolitical tensions, trade-related concerns, and the US government shutdown added pressure, leaving Bitcoin slightly lower than where it began the year," says Edul Patel, CEO of Mudrex, one of India's largest crypto exchanges.

Talking about institutional shifts and policy signals, Nischal Shetty, Founder, WazirX, said the crypto ecosystem saw a "meaningful momentum" in this direction. "Vanguard reversed its long-standing prohibition on crypto, opening its platform to Bitcoin, Ethereum, XRP, and Solana ETFs, triggering a surge in mainstream adoption. The CFTC’s approval of spot crypto ETFs added another boost, reflecting a steady move toward giving traditional financial investors regulated crypto exposure. Firms like BlackRock continued their disciplined investment push into digital assets."  

India's slow policy stance in 2025

India didn’t see much progress when it comes to the mainstreaming of the crypto industry after the Parliamentary Standing Committee’s decision to formally examine virtual digital assets (VDAs) for FY2024-25. There was talk that the government would release a crypto white paper, but nothing happened. 

Industry participants, however, believe that crypto participation in India is broadening meaningfully despite the slow pace of progress on the policy front. Ashish Singhal, Co-founder, CoinSwitch, described 2025 as a year of clear "maturation" for India’s crypto market, as per CoinSwitch's 2025 annual report. However, he also believed that the policy moves across the US and other major economies played a huge role in investor perception in India. 

As countries like the US and UK advanced clear crypto rules, Indian retail investors interpreted it as global "validation", which drove higher participation across top assets like BTC and ETH in the country, he says. "Overall, what shaped trading volumes in 2025 was India’s evolving approach towards the crypto ecosystem. That shift in mindset made people more comfortable coming back into the market, trading more frequently, and taking a long-term view," he told Fortune India.

Sumit Gupta, Co-Founder, CoinDCX, sees the active conversations around VDA in the Parliament as directionally positive developments. "We also saw clearer regulatory expectations. FIU notices issued to offshore platforms operating without compliance reinforced the importance of registration, reporting, and investor safeguards. Requirements around FIU registration and annual cybersecurity audits continued to anchor the compliance environment, creating a more accountable market framework," he told Fortune India.

Can India make substantial progress in 2026?

The government's expected white paper on crypto is supposed to bring clarity on the direction India would take in 2026. If statements from the government's key ministers, including Finance Minister Nirmala Sitharaman, are anything to go by, it's possible that the country could initiate steps towards adopting some of the key crypto-allied technologies like stablecoins.  

In terms of investing, as India moves from early adoption to long-term allocation, it's visible that Indian investors are looking towards building diversified portfolios across all major digital currencies. The data seen by all major crypto exchanges shows investors in India are now moving beyond BTC to allocate across ETH, Solana, XRP, and emerging layer-1 and layer-2 networks.

Industry watchers think it's high time that homegrown exchanges match investor enthusiasm with strong and transparent systems, while ensuring adequate compliance with the norms followed globally.

WazirX's Shetty says there are reasons for optimism in 2026. "In India, the foundation stone of the CBDC project could be laid soon. The RBI has announced a hackathon in October to nurture tech talents in the emerging technology space, which will encourage more Indians to see emerging tech as a promising career prospect. A clearer regulatory framework for VDAs, potentially paired with supportive tax measures, support for stablecoin initiatives alongside CBDC measures, could unlock real-world blockchain use cases from Indian builders to kickstart on-chain growth for Indians."

The Mudrex CEO believes the year 2026 shows strong upside potential for the entire crypto market. "Central banks across the world have started easing liquidity, which historically supports risk assets like crypto. Despite the markets being in a downtrend, the underlying demand remains strong. Bitcoin and Ethereum exchange reserves are hovering near multi-year lows, an indication of reduced selling pressure and stronger long-term holding behaviour."  

Despite slow progress on the policy front, India's lead in the world in grassroots crypto adoption is also a testament to the country's digital-first economy and the growing demand for more inclusive financial products. "As we enter 2026, investors will find new opportunities in derivatives, tokenisation, and real-world asset use cases. At the same time, risks remain, and informed participation is essential. With clearer and forward-looking policy frameworks, India can unlock responsible innovation at scale and strengthen its position as a leader in the future of finance," says Avinash Shekhar, founder of Bengaluru-based pi42 crypto exchange.

As the global crypto industry heads into 2026 with an equal mix of much anticipation and excitement, it will certainly be interesting to see how India moves in this direction.