Recently, Coinbase released its 2025 outlook report, in which its research head David Duong stated that in 2025, the cryptocurrency market is heading towards a new peak of transformation and growth. As the asset class matures, institutional adoption rates are rapidly increasing, and application scenarios across various fields are constantly expanding. Over the past year, the U.S. approved spot ETFs, crypto financial products have rapidly grown in tokenization, and the stablecoin market achieved deep integration with global payment frameworks.
Looking back, all these achievements have not come easily. However, rather than saying these successes are the pinnacle of years of effort, it is more accurate to say they are merely the beginning of a larger chapter. Notably, after experiencing interest rate hikes, regulatory pressure, and uncertainty in 2023, the cryptocurrency market has proven its enduring value as an alternative asset class.
The market uptrend in 2024 continues the trajectory of the previous bull market but also shows some significant differences: 'web3' is gradually being replaced by the more accurate 'onchain', and investment strategies are shifting from narrative-driven to fundamental demand. More importantly, Bitcoin's dominance is rising, and innovations in decentralized finance are breaking the possibilities of blockchain technology, laying the foundation for the establishment of a new financial ecosystem.
Looking ahead, the cryptocurrency ecosystem in 2025 is filled with countless exciting developments. From a market perspective, we will witness decentralized peer-to-peer exchanges, prediction markets, and innovative applications combining artificial intelligence (AI) with cryptocurrency wallets. At the same time, we also see tremendous potential for alignment with mainstream finance in terms of stablecoins, payment solutions, and compliant on-chain capital formation.
Below is a summary of the overall outlook presented in this report:
1. After the Trump Effect, Inflation Challenges Remain
The 2024 U.S. presidential election, with Trump being re-elected, has a significant impact on the cryptocurrency 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 the challenge of 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 Cryptocurrency-Friendly U.S. Congress in History
The 2025 U.S. Congress may become one of the most cryptocurrency-friendly legislative bodies in history. The bipartisan support for clarifying cryptocurrency regulations indicates that the U.S. is gradually transforming regulation from a hindrance to a driving force. At the same time, new policy proposals, including Bitcoin strategic reserves, could provide long-term support for the cryptocurrency market.
3. Cryptocurrency ETFs Expected to Launch Diversely
Since the U.S. approved Bitcoin and Ethereum spot ETFs in 2024, demand in the cryptocurrency market has surged, with net inflows reaching $30.7 billion, far exceeding previous ETF launch capital sizes. The introduction of these products not only solidifies Bitcoin's market dominance but may also drive future listings of more token ETFs, although this process comes with new challenges in trading efficiency and risk management.
4. Stablecoins: The 'Killer Application' of the Cryptocurrency Market
The stablecoin market grew by 48% in 2024, reaching a total market cap of $193 billion, and is expected to approach nearly $3 trillion over the next five years. Stablecoins, due to their fast and low-cost transaction characteristics, are gradually becoming the preferred choice for cross-border payments and commercial applications. At the same time, major payment companies (e.g., Visa and Stripe) are accelerating their adoption of stablecoin infrastructure.
5. The Tokenization Revolution: The Future of Asset Digitization
In 2024, the tokenization of physical assets grew by over 60%, reaching a market size of $13.5 billion. Traditional financial institutions and asset management firms, such as BlackRock and Franklin, are gradually adopting tokenization technology for cross-border settlement and 24/7 trading. Despite facing challenges of liquidity fragmentation and regulatory hurdles, the future potential of this field cannot be ignored.
6. The Revival of DeFi: From Low Points to Solid Growth
Decentralized Finance (DeFi) has undergone a transition from high-risk returns to solid growth. As the U.S. regulatory environment becomes clearer, DeFi is expected to attract more institutional investors. Federal Reserve officials have also recognized DeFi's potential in payment and trading platforms, bringing more positive effects to the field.
7. Telegram Trading Bots: The Hidden Profit Center of Cryptocurrency
In 2024, Telegram trading bots became the invisible champions of the cryptocurrency industry, generating revenue exceeding many DeFi protocols. Its user-friendly interface and convenient token trading features attracted a large number of users and created significant profits. Although trading costs may decrease due to competition, the market is expected to remain strong in 2025.
8. The Intersection of Artificial Intelligence and Cryptocurrency
Artificial Intelligence (AI) is bringing new breakthrough applications to the cryptocurrency market, including automated wallet control and social media interaction. 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 performance. The future development of multi-chain ecosystems may rely on differentiated advantages of each chain, while advancements in application chains and Layer 2 solutions further drive innovation across the blockchain space.
10. User Experience: Simplification is Key
A simplified user experience is crucial for the adoption of cryptocurrency technology. Technological advancements, including account abstraction and cross-chain interoperability, are helping to lower entry barriers for users. In the future, applications will focus more on attracting users through seamless interfaces, enhancing engagement.
More report content...
This report also includes updates on Bitcoin, Ethereum, Solana, tokenization, regulation, and Coinbase's venture capital. For example, it specifically mentions Ethereum's Pectra upgrade, expected to launch in the first quarter of 2025, which is currently in 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 there is further interest, it is recommended to read the full report directly.
This article presents ten key blockchain themes for Coinbase in 2025: Stablecoins are the killer application, and unresolved challenges post-Trump's presidency, originally appeared in Chain News ABMedia.
