Galaxy Research recently released its detailed forecast for the cryptocurrency industry in 2025, covering Bitcoin, Ethereum, stablecoins, DeFi, and profound changes in traditional finance. This report not only provides investors with insights into future market trends, but also makes us look forward to the explosive growth of this industry.
Institutions and countries boost future surge
Galaxy Research expects Bitcoin to break through $150,000 in the first half of 2025 and break through or exceed $185,000 by the end of the year. This expected breakthrough will be driven primarily by widespread adoption by institutions, businesses, and nation-states. Data shows that Bitcoin has outperformed traditional asset classes such as the S&P 500 and gold since its listing, and this trend is expected to continue until 2025.
It is expected that the market value of Bitcoin will be close to 20% of the total market value of gold in 2025. Behind this prospect is that Bitcoin is increasingly becoming the preferred asset for financial institutions and traditional investors. For example, the asset management scale (AUM) of US spot Bitcoin exchange-traded products (ETPs) is expected to exceed US$250 billion in 2025, surpassing the asset scale of gold ETPs and becoming an important choice for institutional investors.
In addition, Galaxy Research predicts that in the future at least one major wealth management platform will recommend allocating 2% or more of funds to Bitcoin. This move may become a catalyst for driving more assets into the Bitcoin market.
Bitcoin’s DeFi boom — scaling and huge market potential
Galaxy Research also pointed out that the Bitcoin DeFi market will usher in explosive growth in 2025, with an estimated scale of nearly $30 billion. Compared with traditional financial instruments, the potential of Bitcoin DeFi is particularly eye-catching, especially driven by the 150% increase in CBTC supply, the 30% increase in WBTC supply, and the Babylon TVL reaching $8 billion. The future growth space is almost unlimited.
It is expected that with the further expansion of Bitcoin’s second-layer network, the DeFi market will enter a new stage of development and become an important part of the crypto industry.
Welcome to a new high, DeFi and the financial ecosystem are accelerating integration
Galaxy Research's predictions for Ethereum are equally exciting. In 2025, the price of Ethereum is expected to exceed $5,500, mainly due to the gradual relaxation of the regulatory environment and the increasingly close cooperation between DeFi and traditional finance. As the demand for staking services surges, Ethereum's staking rate is expected to exceed 50% of its circulating supply in 2025.
In addition, Ethereum’s second-layer network is expected to usher in massive economic activity, potentially generating more market activity than other first-layer blockchains. This trend is expected to further push up the ETH/BTC ratio, which is expected to fluctuate between 0.03 and 0.045.
The rise of stablecoins: market demand explodes and industry integration accelerates
The stablecoin sector will also see a massive growth. Galaxy Research predicts that by 2025, the supply of stablecoins will double to $400 billion, driven primarily by increased demand for payments, remittances, and settlements. The gradual clarification of regulations will make it more convenient for traditional financial institutions to incorporate stablecoins into their businesses, a change that will further drive the development of the stablecoin market.
In addition, as Tether's market share gradually declines, alternative products such as BlackRock's BUIDL and Coinbase's USDC will gradually dominate the market.
Regulatory changes and market structure: uncertainties and opportunities in the future
Galaxy Research also noted that in 2025, stablecoin legislation is expected to be passed in the United States, while broader market structure legislation will still face challenges. However, despite regulatory changes, more traditional financial companies are expected to make great strides in cooperation with blockchain technology, including banks, securities firms and custodians.
At the same time, the U.S. Securities and Exchange Commission may launch more stringent investigations into certain crypto projects, further promoting the improvement of the regulatory environment.
Venture capital, governance and innovation
By 2025, the total venture capital in the cryptocurrency sector is expected to exceed $150 billion, a year-on-year increase of 50%. This reflects the market's great confidence in encryption technology, blockchain applications and DeFi projects. At the same time, the revival of on-chain governance will also promote the increase in active voter participation, and the diversification of future governance models will further stimulate market innovation.
Galaxy Research also mentioned that as DeFi enters the "dividend era", on-chain applications will deliver at least $1 billion in value to users through repurchases and profit distribution, greatly motivating market participants.
Overall, 2025 will be a breakthrough year for the cryptocurrency industry. From the skyrocketing price of Bitcoin, to the prosperity of Ethereum's DeFi, to the rapid expansion of stablecoins, all of these are huge opportunities and challenges. If you are ready for this wave of crypto fever, you might as well pay attention to Mr. Qiu! Whoever can foresee the next step of the market will have the last laugh. You and I have witnessed the rapid evolution of this industry together. Are you ready for the new era of digital assets?
