Coinbase, a Nasdaq-listed company and a US cryptocurrency exchange, recently released a report highlighting five areas of focus in the cryptocurrency market in 2025.
In a report titled Cryptocurrency Market Outlook, Coinbase listed stablecoins first, saying they are “just getting started” after the sector exploded in 2024.
Coinbase says stablecoins are the “killer app” for cryptocurrencies and that their use cases will soon expand beyond simple trading applications.
“As stablecoins continue to soar, we are rapidly approaching their first and primary use case, which will be global capital flows and commercial applications, rather than transactions as they are today.”
Next up, is the tokenization of real-world assets (RWA), which Coinbase believes will become the cornerstone of the current crypto market cycle by 2025.
“Companies are experimenting with using tokenized assets as collateral for other financial transactions, such as those involving derivatives, which can streamline operations and reduce risk. In addition, the RWA trend is moving beyond assets such as U.S. Treasuries and money market funds to gain traction in private credit, commodities, corporate bonds, real estate, and insurance.”
The third area worth paying attention to is the exchange-traded fund (ETF) sector.
Coinbase said it expects institutional interest to remain concentrated in a small number of crypto ETFs. Crypto exchanges are also interested in potential rule changes that regulators could make, such as allowing ETF products to include collateral or physical redemptions.
The fourth focus is decentralized finance (DeFi). Coinbase said DeFi will witness a "renaissance", pushing it into a new era and expanding its influence.
“Decentralized finance (DeFi) took some hits in the last cycle, but a more sustainable and resilient ecosystem has emerged. Total value locked (TVL) in lending protocols hit all-time highs, while decentralized exchanges (DEX) are reaching unprecedented levels of volume share relative to centralized exchanges (CEX).”
The fifth thing to watch is the regulatory environment, which Coinbase said will undergo a major shift that will drive industry development.
“Specifically, we expect the United States to establish a comprehensive regulatory framework, introduce robust stablecoin legislation, and end the era of law enforcement oversight.
And the U.S. isn’t the only jurisdiction poised to make progress on regulation. Many G20 countries and major financial centers are developing rules to accommodate digital assets, which will help create a more favorable environment for innovation and growth. Collectively, these moves can open the door for more investors and institutions to confidently participate in the crypto economy.”
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