Not Bitcoin or Ethereum: These were the most popular crypto tokens in May
In May 2026, Bitcoin and Ethereum underperformed while alternative cryptocurrencies like Hyperliquid (HYPE), Zcash, and BNB surged due to new ETFs and institutional investments, according to Binance data. Hyperliquid led gains with an 81% rise, driven by ETF launches from 21 Shares and Bitwise, while Bitcoin and Ethereum faced selling pressure amid macroeconomic concerns and regulatory uncertainty.
May 2026 marked a shift in the cryptocurrency market, as Bitcoin and Ethereum struggled while lesser-known tokens surged. Hyperliquid (HYPE) topped performance with an 81% gain, breaking the $70 mark for the first time. The rally was fueled by ETFs from 21 Shares and Bitwise, attracting over $100 million in investments. Zcash followed with a 57.3% rise after Multicoin Capital disclosed significant holdings, boosting investor confidence. BNB rose 15% after VanEck announced the first US-listed spot BNB ETF (VBNB), backed by physically held BNB in cold storage. TRX gained 8.7%, supported by its blockchain’s growing use for low-cost stablecoin transfers, with its ecosystem reaching nearly $90 billion and surpassing Solana in daily active users. Meanwhile, Bitcoin dropped 4.8% amid fears of large-scale selling by Strategy, while XRP fell 5.9% despite a landmark cross-border settlement pilot involving JPMorgan, Ripple, Mastercard, and Ondo Finance. Ethereum was the weakest major token, declining 12.4% as key Ethereum Foundation members exited and high-profile sales like Bankless co-founder David Hoffman’s ETH disposal weighed on sentiment. Binance attributed the market pullback to macro factors, including Bitcoin testing its 200-day moving average and Fed-driven ETF outflows amid inflation concerns. Investors are now watching Fed Chair Kevin Warsh’s rate signals, progress on the CLARITY Act for US crypto regulation, and AI-driven market trends. The data highlights a broader trend of institutional interest diversifying beyond Bitcoin and Ethereum, with ETFs and strategic investments driving growth in alternative assets. While traditional cryptocurrencies faced headwinds, smaller tokens benefited from regulatory clarity and new financial products. Analysts suggest these shifts could reshape the market’s long-term dynamics, depending on regulatory developments and macroeconomic conditions.
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