Tokenization grows 2,500% since May 2025: Will this fuel crypto’s 2024-style rally?

 Is crypto setting up for a 2024 repeat cycle?

Back then, crypto saw a powerful risk-on phase, with total market cap climbing to $3.7 trillion, while Bitcoin gained more than 120% and broke above $100,000 for the first time.

The catalyst appeared to be a powerful combination: Spot Bitcoin ETFs opened the floodgates for institutional demand right when the post-halving supply squeeze was starting to build.

For context, the April 2024 halving cut Bitcoin’s block reward from 6.25 BTC to 3.125 BTC, reducing supply creation.

However, that squeeze does not appear to be translating into the same sort of momentum as the previous cycle thus far, with the price struggling through 2025 and extending into 2026. So, what will provide the catalyst for the next move higher? 

As can be seen in the chart above, tokenized-asset holders have crossed 3.5 million for the first time.

To put this into perspective, the holder base has grown by 109% in the past 30 days alone and more than 2,500% since May 2025, while the total represented asset value has risen to $387 billion.

Notably, the shift is also gaining momentum with bigger players as Robinhood and other institutions are now entering the tokenization market.

At the same time, the on-chain trading is increasing, with 63% of Jupiter’s volume occurring outside of normal market hours, indicating a rising demand for 24/7 markets.

In short, capital flows in tokenized assets are growing, fueling the appeal of this space for institutional investors. Combined with the recent strength in ETF flows, this momentum could continue to build.

In this context, the prospect of crypto laying the groundwork for a 2024-style institutional rally cannot be ruled out.

A new institutional cycle could be taking shape 

The reason behind the latest ETF inflows is still unclear. 

What’s clear, though, is that the inflows are picking up after a period of heavy outflows. According to Glassnode, Bitcoin ETFs attracted $643 million last Thursday, the highest daily net inflow since January.

As the sentiment starts to pick up, the ETF demand suggests that the appetite for crypto is starting to resume.

Notably, BlackRock’s IBIT Bitcoin ETF is showing a similar pattern. According to the chart given below, IBIT has attracted $3.7 billion so far this quarter, which is expected to become its highest quarterly inflow since Q3 2025.

Inflows this September came in at $459.8 million, following $3 billion in August. The result is visible in its AUM. Since July, its AUM has grown by $19.6 billion, or 46%, illustrating just how quickly institutional demand for crypto has returned.

Taken together with the growing adoption of tokenization and increased ETF inflows, it suggests that institutional engagement with crypto assets is on the rise despite the ongoing macro FUD. It may not be the start of 2024’s frenzy, but the trend certainly appears to be gaining momentum.

The combination with Bitcoin’s 2024 halving and reduced issuance of 3.125 BTC per block adds to the case. If institutional demand continues to grow alongside increased tokenization, then diminished supply may well fuel the next parabolic rally.

If the trend persists, crypto assets may well be poised to deliver a 2024-style rally in the months ahead.

Final Summary