Where does the crypto trip go in 2025?
Despite macroeconomic challenges in 2024, the crypto and financial markets offered both options and hurdles. A milestone was the US approval of Spot-Bitcoin Exchange-Traded Funds (ETFs), the most successful ETF introduction in history, a few months before the Halving event.
Summer sales waves, triggered by violent liquidations and geopolitical tensions, only temporarily dampened the market mood. In the meantime, inflation and central banks worldwide reduce interest. This has strengthened assets such as Bitcoin and focused on the desired crypto-friendly regulatory framework for 2025. Nobody can predict the future with absolute certainty. But we have twelve predictions developedto outline our market prospects for 2025. In this article we describe three of them.
Another state will take over Bitcoin as a strategic reserve
The setting of many investors is visible in the graphic below. It shows a collection of long-term Bitcoin owners, whose assets have not been moved for at least 155 days. These owners protect themselves from currency devaluation and market turbulence. For 2025 we expect countries like Argentina take Bitcoin as a strategic reserve assets. Argentina is aiming for a debt-free budget by 2025, so that a crypto-oriented agenda and the cooperation between President Milei with the President of El Salvador, Nayib Bukele, could indicate a broader Bitcoin acceptance.
Ethereum's Renaissance begins in 2025
Ethereum's scaling solutions will attract a greater demand for blob space: a memory area on Ethereum for large amounts of data. So-called “Blobs”, who support Layer-2 (L2) solutions, to process transactions faster and cheaper. We expect L2S to drive the next wave of Ethereum acceptance and flow back to Ethereum-Minnet, which heats up its growth. Adjustments such as higher blob fees and sales sharing agreements with L2S could further strengthen Ethereum's economic sustainability.
Revenue sharing will revolutionize Defi
The graphic below shows the commercial volumes of leading decentralized stock exchanges (Dexs), which despite the market volatility a constant activity in DeFiOccupy area. Uniswap dominates the space, with occasional tips that are probably related to market events. The narrative emphasizes the resistance of Defi and the possibility of significant changes in 2025. The Unicain initiative of Uniswap could redefine the usefulness of the token and signal a broader change into defect towards fee-based mechanisms and improved token economies, especially under a Pro crypto.
The changes in acceptance and technology are unmistakable from the Ethereum ecosystem solutions to the emerging protocols that compete directly with existing infrastructure networks. Explore the full report and discover what comes next for Defi and Layer 1 networks.
