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The year 2024 has made the cryptocurrency industry a serious topic on the international scene. As the industry approaches 2025, Forbes has identified seven key predictions for the important events expected in the coming year.
According to Forbes, the cryptocurrency industry is entering a new era of maturity and development as the calendar turns to 2025. The infrastructure is being built for widespread adoption and mainstream interest as Bitcoin consolidates its role as a global reserve asset.
Also, ETFs continue to grow exponentially just as stablecoins and DeFi applications continue to expand. Additionally, the crypto ecosystem is poised to reshape the future of global finance by leveraging innovative technologies and more transparent regulations.
However, the crypto industry owes a lot of credit to 2024. The year was a turning point for the broader crypto ecosystem. It saw the launch of the first Bitcoin Ethereum ETFs, which were the first signs of real institutional adoption.
Additionally, stablecoins have strengthened the global dominance of the US dollar, while Bitcoin has broken the $100,000 barrier for the first time.
BRICS Looks to Bitcoin SBRs, US Wants to Become a Crypto Powerhouse
The BRICS countries were planning to overthrow the US dollar. The dent nature of the cryptocurrency industry gives them the greatest opportunity to achieve their agenda.
Bitcoin is a giant in this sector, and has recently gained significant support from major companies and countries such as El Salvador's Nayib Bukele.
The race is now on to become the first major country to integrate Bitcoin into its reserve strategy. This would diversify assets beyond traditional holdings such as gold, foreign currencies and sovereign bonds.
This move would cement Bitcoin’s status as a global reserve asset. It would also change the dynamics of international finance, with far-reaching implications for economic and geopolitical power structures.
The creation of a strategic Bitcoin reserve by a prominent economy could signal the beginning of a new era in sovereign wealth management. The race is now on between the United States, El Salvador, and the BRICS countries. The BRICS countries have this consideration more than any other.
Additionally, the Trump administration is planning to create a Strategic Bitcoin Reserve (SBR) for the United States. However, there needs to be a lot of political will and congressional approval before Bitcoin can be added to the U.S. Treasury’s balance sheet.
By suggesting that a restructuring agreement was possible, the United States has prompted other major countries to consider doing the same. Based on game theory, these countries may feel compelled to act early, beating the United States to gain a strategic advantage in diversifying their national reserves.
The fact that Bitcoin is limited and is becoming more popular as a store of digital currency may make it more important for countries to move quickly.
Moreover, the U.S. crypto industry is about to transform again. SEC Chairman Gary Gensler’s controversial “regulation by enforcement” approach, which stifled innovation and pushed many crypto projects overseas, will come to an end with his departure.
He will be succeeded by Paul Atkins, who brings a very different perspective. Atkins is known for his pro-crypto stance, his advocacy of deregulation, and his leadership in initiatives such as the Token Alliance, a pro-crypto advocacy group.
His approach ensures a more collaborative regulatory framework, encouraging rather than suppressing innovation.
Furthermore, the US will see a significant increase in token launches. This is due to renewed support for innovation and increased regulatory clarity. Startups will feel empowered to issue tokens as part of their fundraising and ecosystem building efforts.
These tokens, which include decentralized application tokens and protocol governance tokens, attract domestic and international capital, thereby boosting participation in U.S.-based projects.
Stablecoins will continue to expand, with the potential to double in value.
Stablecoins have become one of the most successful traditional use cases in cryptocurrency. They have provided a link between the cryptocurrency ecosystem and traditional finance.
In 2024, the circulating supply of stablecoins reached an all-time high of $200 billion, with market leaders Circle and Tether dominating the market.
The development of stablecoins is expected to accelerate in 2025, with the potential to double and exceed $400 billion. This expansion is expected to be spurred by the potential passage of stablecoin legislation. This could provide the sector with much-needed regulatory clarity and encourage innovation.
US regulators increasingly recognize the strategic importance of stablecoins in strengthening the global dominance of the US dollar and reaffirming its status as the world’s reserve currency.
As other countries slowly introduce themselves to the cryptocurrency industry, stablecoins are the first stop due to their safe nature from volatility.
The tech industry is embracing Bitcoin as the DeFi ecosystem grows.
As Bitcoin transitions from its role as a store of value, layer 2 (L2) networks like Stacks, BOB, Babylon, CoreDAO, and others are unlocking the potential of the thriving Bitcoin DeFi ecosystem.
Looking ahead to 2025, Bitcoin DeFi is expected to grow significantly. The total value locked on Bitcoin L2s will exceed $24 billion. Currently, it is represented by wrapped Bitcoin contracts, which represent about 1.2% of the total Bitcoin supply.
Bitcoin’s market cap is also approaching $2 trillion. This will activate L2 networks, allowing users to harness its immense potential value in a more secure and efficient way. This will be possible by cementing Bitcoin’s position as the cornerstone of decentralized finance.
Additionally, it is highly likely that one of the Big Seven tech giants, in addition to Tesla, will incorporate Bitcoin into its balance sheet. This is due to improved accounting frameworks and increased regulatory clarity.
That’s because the seven big companies — Apple, Microsoft, Google, Amazon, Nvidia, Tesla, and Meta — collectively have over $600 billion in cash reserves. This gives them a lot of flexibility to allocate a portion of their capital to Bitcoin.
Bitcoin ETFs Will Rise and Other Cryptocurrency ETFs Will Appear
The launch of Bitcoin ETFs has led to over $108 billion in assets under management (AUM) in its first year. These ETFs have shown unparalleled demand from both individual and institutional investors.
The success of Bitcoin ETFs has served as a springboard for Ethereum ETFs to debut. In 2025, Ethereum ETFs will feature a staking system for the first time. The opportunity for investors to earn staking rewards is expected to further enhance the appeal and value of these funds.
Additionally, ETFs will soon be available for other prominent crypto protocols. Solana will be one of them as it has become known for its high-performance blockchain, vibrant DeFi ecosystem, and rapid expansion into gaming, NFTs, and meme coins.
Furthermore, it is expected that cryptocurrency index-weighted ETFs will be introduced to provide diversified exposure to the broader crypto market. A balanced portfolio that includes the growth potential of a range of high-performing assets such as Bitcoin, Ethereum, Solana, and others, as well as emerging protocols.
These developments will increase the accessibility, efficiency and attractiveness of investing in cryptocurrencies. They will attract a diverse group of investors, thus directing additional capital into the sector.
Total cryptocurrency market cap will exceed $8 trillion
The total market cap of the cryptocurrency market is expected to reach record highs as capital flows into the space and user bases expand. As a result, asset prices will follow suit. With this momentum, the cryptocurrency market is expected to surpass $8 trillion, indicating continued growth and innovation in the industry.
Looking ahead to 2024, the total cryptocurrency market cap has soared to an all-time high of $3.8 trillion. Now, companies are already allocating funds to cryptocurrency investments.
Most recently, Microstrategy has reached out and aims to raise $21 billion through equity financing and another $21 billion through bond issuance over three years. Saylor has already made it clear that this money will be used to buy more Bitcoin to demonstrate the company’s commitment to Bitcoin.
Additionally, the influx of developer talent into the cryptocurrency ecosystem is expected to increase by 2025. This will lead to the development of new applications that achieve product-market fit and sign up millions of additional users.
This wave of innovation is expected to generate groundbreaking decentralized applications (dApps) in emerging disciplines that are still in their infancy, including artificial intelligence (AI), decentralized finance (DeFi), and decentralized physical infrastructure networks (DePIN).