As 2024 draws to a close, European crypto investment firm CoinShares has released market forecasts for the new year. In a report, CoinShares identified key trends that could dominate the crypto industry in 2025.
The report takes a closer look at how the United States (US) under Donald Trump could impact the crypto market. It also discusses the emergence of Bitcoin-based revenue-generating companies as a trend to watch in 2025.
Will Trump revamp crypto?
In a Dec. 11 report, CoinShares stated that the U.S. is set to undergo significant changes in crypto regulation by 2025 under the Trump administration. Analyst Max Shannon believes that the promised regulatory reform and support for Bitcoin miners could create a favorable environment for digital assets in 2025.
As the U.S. moves toward these policies, altcoins will likely outperform Bitcoin, despite the latter still potentially being one of the best-performing assets in 2025, the analyst wrote.
It is predicted that miners focused exclusively on Bitcoin mining will likely outperform those who have diversified into other revenue streams, such as Artificial Intelligence (AI) or machine manufacturing.
CoinShares also noted that the path for Bitcoin ETFs looks promising given their rapid success. Furthermore, only 20% of AUM in Bitcoin ETFs is held by professional firms and money managers. This means there is room for growth with more institutional adoption.
Bitcoin Yield – The Next Big Thing?
Thus, another trend to watch in 2025 is the emergence of companies that generate income in Bitcoin. This comes into focus as giants are now adopting BTC as a treasury asset.
Analyst Satish Patel has classified BTC yield into three categories. The first is the growth of Bitcoin holdings relative to the company’s stock. The second is yield farming, which generates returns by lending Bitcoin. The third mainly involves alternative strategies to leverage derivatives and generate income from a Bitcoin reserve.
On the other hand, MicroStrategy, which holds 423,650 BTC, has even introduced its own version of the “BTC Yield” metric to measure the effectiveness of its strategy. Companies like Block, Marathon Digital, and Metaplanet are following in MicroStrategy’s footsteps by accumulating Bitcoin for profit.
This trend reflects a broader recognition of Bitcoin's potential to serve not only as a store of value but also as a means of generating income, the analyst said.
Patel also highlighted how major companies have started accepting crypto as payment in 2024. He believes that companies like Amazon, Shopify and Nike, already involved in crypto, either through payments or investments, may consider incorporating Bitcoin into their treasuries in 2025.
What 2025 holds for Ethereum, Solana
When it comes to Ethereum, CoinShares has predicted that usage on Layer 2s will continue to increase in the coming year. According to analyst Luke Nolan, institutionalization of Layer 2 chains, as was the case with Kraken and Sony, will drive adoption in 2025.
In our view, L2 adoption will continue to grow, which will increase demand for blobs and the cost of Ethereum transaction fees, Nolan said.
He added, moreover, that L2s will once again become a source of demand for Ethereum.
As Ethereum prepares for the Pectra upgrade in 2025, the analyst noted that executing on the roadmap would bring new efficiencies. Thus, the ETH token will also face challenges when trying to balance usability and value accumulation.
Now, as far as the future of Solana is concerned, the report stated that Frankendancer and Firedancer could transform it.
These are validator clients that aim to change Solana’s network, runtime, and consensus layers to improve performance and scalability. However, Solana also needs to address its transactions per second (TPS) limitations through upgrades for greater efficiency.
The article CoinShares predicts strong 2025 for Bitcoin and altcoins with Donald Trump in charge appeared first on BeInCrypto Brasil.
