Recently, the U.S. Exchange Group Coinbase released the 2025 Outlook Report, where its research head David Duong stated that in 2025, the cryptocurrency market is moving towards a new peak of transformation and growth. As the asset class gradually matures, institutional adoption rates are rapidly increasing, and application scenarios across various fields are continuously expanding. In the past year, the U.S. approved spot ETFs, crypto financial product tokenization has rapidly grown, and the stablecoin market achieved deep integration with the global payment framework.
Looking back, these achievements have not come easily. Rather than viewing them as the pinnacle of years of effort, they should be seen as merely the beginning of a larger chapter. Notably, after experiencing interest rate hikes, regulatory pressures, and uncertainties in 2023, the crypto market has proven its long-term value as an alternative asset class.
The market uptrend in 2024, while continuing the trajectory of the previous bull market, also presents some significant differences: 'web3' is gradually being replaced by the more fitting 'onchain', and investment strategies are shifting from narrative-driven to fundamental demand. More importantly, Bitcoin's dominance is rising, decentralized finance innovations are breaking through the possibilities of blockchain technology, and laying the foundation for the establishment of a new financial ecosystem.
Looking ahead, the crypto ecosystem in 2025 is filled with countless anticipated developments. From the market perspective, we will see decentralized peer-to-peer exchanges, prediction markets, and innovative applications combining AI with crypto wallets. At the same time, we also see great potential for aligning with mainstream finance in areas such as stablecoins, payment solutions, and compliant on-chain capital formation.
Here is a summary of the overall outlook from the report:
1. After the Trump Effect, inflation challenges remain
The 2024 U.S. presidential election, with Trump re-elected, will have a significant impact on the crypto market, driving Bitcoin prices to soar. However, as we enter 2025, the market's focus shifts to the Federal Reserve's monetary policy. The Fed faces challenges in achieving full employment while slowly reducing inflation, and expansionary fiscal policies (e.g., tax cuts or tariffs) may exacerbate inflationary pressures. Although the inflation rate has dropped to 2.7%, core inflation remains at 3.3%, above the target.
2. The Most Crypto-Friendly U.S. Congress in History
The U.S. Congress in 2025 may become one of the most crypto-friendly legislative bodies in history. Bipartisan support for clarifying crypto regulations shows that the U.S. is gradually shifting regulation from a hurdle to a driving force. Meanwhile, new policy proposals, including Bitcoin strategic reserves, may provide long-term support for the crypto market.
3. Cryptocurrency ETFs Expected to Launch Diversely
Since the U.S. approved Bitcoin and Ethereum spot ETFs in 2024, demand in the crypto market has surged, with net inflows of $30.7 billion, far exceeding previous ETF launch funding levels. The introduction of these products not only solidified Bitcoin's market dominance but may also drive the listing of more tokens' ETFs in the future, despite this process being accompanied by new challenges in trading efficiency and risk management.
4. Stablecoins: The 'Killer App' of the Crypto Market
The stablecoin market grew by 48% in 2024, reaching a total market capitalization of $193 billion, and is expected to rise to nearly $3 trillion in the next five years. Stablecoins are gradually becoming the preferred choice for cross-border payments and commercial applications due to their fast and low-cost transaction features. At the same time, the expansion of stablecoin infrastructure by major payment companies (e.g., Visa and Stripe) has further accelerated their adoption.
5. The Tokenization Revolution: The Future of Asset Digitalization
In 2024, the tokenization of physical assets will grow by over 60%, reaching a market size of $13.5 billion. Traditional financial institutions and asset management companies, such as BlackRock and Franklin, are gradually adopting tokenization technology for cross-border settlements and around-the-clock trading. Despite the challenges of liquidity fragmentation and regulatory hurdles in this field, its future potential cannot be overlooked.
6. The Revival of DeFi: From Low Valley to Steady Growth
Decentralized Finance (DeFi) has undergone a process from high-risk returns to steady growth. As the regulatory environment in the U.S. gradually clarifies, DeFi is expected to attract more institutional investors. Federal Reserve officials have also recognized the potential of DeFi in payment and trading platforms, bringing more positive effects to the sector.
7. Telegram Trading Bots: Hidden Crypto Profit Centers
In 2024, Telegram trading bots became invisible champions of the crypto industry, generating revenue surpassing many DeFi protocols. Its user-friendly interface and convenient token trading features attracted a large number of users, creating substantial profits. Although trading fees may decrease due to competition, this market will remain strong in 2025.
8. The Intersection of Artificial Intelligence and Cryptocurrency
Artificial Intelligence (AI) is bringing new breakthrough applications to the crypto market, including automated wallet control and social media interactions. While current investment focus is largely on tokens related to AI concepts, more sustainable value growth may emerge at the infrastructure layer in the future.
9. The Multi-Chain Future: Coexistence or Zero-Sum Game?
Although Ethereum remains the center of DeFi activity, emerging blockchains are challenging its position with low costs and high efficiency. The future development of multi-chain ecosystems may depend on the differentiated advantages of each chain, while advancements in application chains and Layer 2 solutions further drive innovation across the entire blockchain space.
10. User Experience: Simplification is Key
A simplified user experience is crucial for the widespread adoption of cryptocurrency technology. Technological advancements, including account abstraction and cross-chain interoperability, are helping to lower the user entry barrier. In the future, applications will focus more on attracting users through seamless interfaces to enhance engagement.
More report content...
This report also includes updates on Bitcoin, Ethereum, Solana, tokenization, regulation, and Coinbase's venture capital. For instance, it specifically mentions the Ethereum Pectra upgrade, expected to launch in the first quarter of 2025, which has entered the developer testnet phase. This upgrade encompasses numerous Ethereum Improvement Proposals (EIPs) aimed at further enhancing network performance, promoting the scalability of decentralized applications, and optimizing user experience.
If further interested, it is recommended to read the full report directly.
This article, 'Coinbase's 10 Key Blockchain Themes for 2025: Stablecoins as Killer Applications, and Unresolved Challenges Post-Trump', first appeared in Chain News ABMedia.
