Not Bitcoin or Ethereum: These were the most popular crypto tokens in May

May turned into a month of surprises for the cryptocurrency market, with traders looking beyond the usual heavyweights. Some key reasons behind this shift include new investment products and institutional interest that helped several lesser-known tokens capture investor attention.

While Bitcoin and Ethereum remained under pressure in May, a different set of cryptocurrencies emerged as the month's top performers, according to data released by Binance Research. Hyperliquid (HYPE) topped the charts, surging 81% during the month, followed by Zcash and BNB.

The Binance Research data showed that the market's largest cryptocurrencies, including Bitcoin, Ethereum, and XRP, ended the month in negative territory. This happened because investor sentiment around Bitcoin and Ethereum weakened amid concerns over potential selling pressure and questions on whether the Ether network's growth still benefits holders.

Which altcoins topped the charts in May?

Here's how the top 10 coins by market capitalisation performed during the month, as per Binance Research's monthly markets insights:

• Hyperliquid was May's biggest winner, rising 81% and surpassing the $70 mark for the first time. The rally was driven by the launch of exchange-traded funds (ETFs) linked to the token by 21 Shares and Bitwise, which brought more than $100 million in investor money.
• Zcash was another standout outperformer, surging 57.3% during the month after thesis-driven investment firm Multicoin Capital disclosed a sizable accumulation of the token, boosting confidence among investors.
• BNB gained 15% after global investment management firm VanEck's announcement of the first US-listed spot BNB ETF ("VBNB"), physically backed by BNB held in cold storage.
• TRX gained 8.7%, supported by growing usage of its blockchain network for low-cost stablecoin transfers. The blockchain's stablecoin ecosystem grew to nearly $90 billion and overtook Solana with 4 million daily active users.

Why did Bitcoin and other major crypto tokens fall?

Bitcoin declined about 4.8% amid speculation that a major Bitcoin holder Strategy could sell part of its holdings, raising fears of additional supply entering the market. Betting market participants on Polymarket tapped on an 80% probability that the company would sell some of its Bitcoin holdings this year.

XRP also fell 5.9% despite a landmark cross-border settlement pilot involving JPMorgan, Ripple, Mastercard and Ondo Finance, integrating the XRP Ledger with traditional banking rails for the first time. Investors appeared to focus more on broader market sentiment than on the development itself.

Ethereum was the weakest performer among major tokens, dropping 12.4% as sentiment was hit by the exit of several high-profile members of the Ethereum Foundation. Bankless co-founder David Hoffman disclosed ETH sales, arguing that network growth no longer directly benefits holders.

“May's crypto pullback was driven by a range of macro factors. BTC tested the 200-day moving average and short-term holder realized price but failed to hold – a level the market continues to watch. ETF outflows reflected short-term pressure as inflation drives the Fed hawkish, while on-chain supply tightening remains intact,” the Binance Research report noted.

Looking ahead, the exchange said investors are closely watching three key developments, including interest-rate signals from the new Fed Chair Kevin Warsh, progress on the CLARITY Act that could shape crypto regulation in the United States, and whether enthusiasm around artificial intelligence continues to drive investment flows across digital assets.