Translation: White Paper Blockchain
Mark Greenberg, Head of Global Consumer Business at Kraken.
Looking ahead to 2025, cryptocurrencies are playing an increasingly important role in shaping the changing financial landscape. From their gradual inclusion in diversified portfolios to the development of blockchain-driven financial services, cryptocurrencies continue to have a profound impact on traditional finance.
This year, as trust, accessibility, and innovation continue to grow, cryptocurrencies will achieve a deeper integration into mainstream financial strategies. Here are the six trends I am most focused on for the upcoming 2025.
1. Cryptocurrencies become an essential component of an ideal investment portfolio.
The historically asymmetric return characteristics of cryptocurrencies are making it increasingly difficult for investors to justify not including them in their portfolios.
In 2025, strategies like dollar-cost averaging (DCA) will continue to gain favor, allowing investors to start with small investments and gradually increase their positions. I expect that methods to familiarize users with this asset class will accelerate in the new year.
2. Crypto platforms will focus on providing clients with mid-to-long-term wealth accumulation strategies, with trust as the key differentiator.
In 2025, exchanges and crypto platforms will shift product strategies to offer clients mid-to-long-term wealth accumulation solutions. The foundation of these services will be earning yields through holding stablecoins, layered with more complex products and services on top.
In light of the lessons learned from the collapses of FTX, Celsius, and Voyager during the last cycle, customers will place more emphasis on the trustworthiness, security, and durability of platforms when choosing how to access these opportunities.
3. The stablecoin market will see its first real challenge to existing giants, with users as the primary beneficiaries.
The stablecoin market has long been dominated by Tether and USDC, and this is no secret. In 2025, these two giants will face real competition for the first time as a new generation of stablecoins launches, challenging the existing leaders with advantages in regulation and geography.
This competition will bring affordability to users, giving them more tools to manage digital fiat currencies, while the adoption of alternative tokens also helps manage counterparty risks of stablecoin issuers.
4. Bitcoin will gain more mainstream attention during inflation rebounds.
Some analysts predict that inflation may remain above the Federal Reserve's 2% target for an extended period. For the first time, everyone in the West has personally experienced the persistent decline in fiat currency value, something not seen since the 1970s.
Bitcoin's fixed supply—something that gold cannot provide—may drive more mainstream recognition of its anti-inflation value proposition. This will encourage more people to adopt Bitcoin as a store of value to protect wealth amidst fiat currency depreciation.
5. Cryptocurrency market volatility will decrease.
Over the past decade, the overall volatility of cryptocurrencies has been on a downward trend. This is because increased adoption has brought more liquidity, making the market less susceptible to drastic price swings.
As ETFs enable more investors to access cryptocurrencies, we expect the volatility of the crypto market to continue to decrease. This could make cryptocurrencies more appealing to investors with a higher risk tolerance (and support strategies like dollar-cost averaging (DCA)).
6. A new generation of banking services based on cryptocurrencies goes mainstream.
We have begun to see new investment products—such as money market funds—launching on different blockchains. Traditional financial institutions have recognized and are leveraging the efficiency gains brought by this technology, as well as its ability to open up new products for entirely new markets.
In 2025, I expect more familiar financial products to be built on blockchain and brought to market—including payments, savings plans, high-yield savings accounts, credit cards, lending, and more.
7. Summary: 2025: Cryptocurrencies step onto the main stage.
In 2025, the maturation of the cryptocurrency market will bring a new era of opportunities and stability for investors and institutions. Whether it's Bitcoin as a mainstream store of value, the emergence of competitive stablecoins, or platforms prioritizing long-term wealth accumulation strategies, the influence of cryptocurrencies will further expand into the financial world.
With trust and accessibility at its core, this year will be a turning point for cryptocurrencies to solidify their position as a crucial pillar in the modern financial ecosystem.
