The year 2024 marked a historic turning point for Bitcoin and the broader cryptocurrency ecosystem. It saw the launch of the first Bitcoin and Ethereum ETFs, signaling genuine institutional adoption. Bitcoin shattered the $100,000 milestone for the first time, while stablecoins continued to reinforce the global dominance of the US dollar. Adding to this momentum, the winning U.S. presidential candidate made support for Bitcoin a central pillar of his campaign.
Collectively, these milestones cemented 2024 as the year the crypto industry proved itself to be an unstoppable force on the global stage. As the industry shifts its focus to 2025, here are my seven predictions of major events we can expect to take place next year.
The year 2024 marked a historic turning point for Bitcoin and the broader cryptocurrency ecosystem. It saw the launch of the first Bitcoin and Ethereum ETFs, signaling genuine institutional adoption. Bitcoin shattered the $100,000 milestone for the first time, while stablecoins continued to reinforce the global dominance of the US dollar. Adding to this momentum, the winning U.S. presidential candidate made support for Bitcoin a central pillar of his campaign.
Collectively, these milestones cemented 2024 as the year the crypto industry proved itself to be an unstoppable force on the global stage. As the industry shifts its focus to 2025, here are my seven predictions of major events we can expect to take place next year.
1) A major G7 or BRICS nation will establish and announce a Strategic Bitcoin Reserve
The Trump administration’s proposal to establish a Strategic Bitcoin Reserve (SBR) for the United States has sparked widespread debate and speculation. While adding Bitcoin to the U.S. Treasury’s balance sheet would require considerable political willpower and congressional approval, the mere suggestion of such an initiative carries profound implications.
By signaling the possibility of an SBR, the U.S. effectively invites other major nations to consider a similar move. Game theory suggests that these countries may feel incentivized to preemptively act, potentially front-running the U.S. to secure a strategic advantage in diversifying their national reserves. Bitcoin’s limited supply and its emerging role as a digital store of value could heighten the urgency for nations to act quickly.The race is now on for the first major country to integrate Bitcoin into its reserve strategy, diversifying alongside traditional holdings like gold, foreign currencies, and sovereign bonds. Such a move would not only solidify Bitcoin’s status as a global reserve asset but could also reshape the dynamics of international finance, with far-reaching implications for economic and geopolitical power structures. The establishment of a Strategic Bitcoin Reserve by any leading economy could mark the beginning of a new era in sovereign wealth management.
2) Stablecoin growth will continue, doubling to exceed $400 billion
Stablecoins have emerged as one of crypto's most successful mainstream use cases, offering a bridge between traditional finance and the crypto ecosystem. Across the globe, millions use stablecoins for remittance payments, everyday transactions, and as a hedge against the volatility of local currencies by accessing the relative stability of currency
In 2024, stablecoins reached an all-time high of $200 billion in circulating supply, dominated by market leaders Tether and Circle. These digital currencies rely on blockchain networks such as Ethereum, Solana, and Tron to facilitate seamless, borderless transactions.
Looking ahead, stablecoin growth is poised to accelerate in 2025, potentially doubling to exceed $400 billion. This growth will be fueled by the likely passage of stablecoin-specific legislation, which could provide much-needed regulatory clarity and foster innovation within the sector. U.S. regulators are increasingly recognizing the strategic importance of stablecoins in strengthening the global dominance of the U.S. dollar, reinforcing its status as the world’s reserve currency.
Stablecoins reached a new all time high this year exceeding $200 billion in total supply.
Stablecoins reached a new all time high this year [+]
exceeding $200 billion in total supply for the first time. The growth was led by Tether and Circle's USDC.
DeFillama
3) Bitcoin DeFi enabled by L2s will be a dominant growth trend
Bitcoin is evolving beyond its role as a store of value, with Layer 2 (L2) networks like Stacks, BOB, Babylon, CoreDAO, and others unlocking the potential for a thriving Bitcoin DeFi ecosystem. These L2s enhance Bitcoin's scalability and programmability, enabling decentralized finance (DeFi) applications to flourish on the most secure and decentralized blockchain.
In 2024, Stacks had a transformative year with the launch of the Nakamoto Upgrade and sBTC. The Nakamoto Upgrade allowed Stacks to inherit 100% Bitcoin finality and introduced faster block speeds, significantly improving user experience. Meanwhile, sBTC, a trustless Bitcoin-pegged asset launched in December, enabled seamless participation in DeFi activities such as lending, borrowing, swapping, and staking—all anchored to Bitcoin’s security.
Previously, Bitcoin holders seeking DeFi opportunities were forced to wrap their Bitcoin on other networks like Ethereum. This process relies on centralized custodians such as WBTC (BitGo), BTCB (Binance), and cbBTC (Coinbase), exposing users to centralization and censorship risks. Bitcoin L2s reduce these risks, offering a more decentralized alternative to put Bitcoin to work natively within its own ecosystem.
Looking ahead to 2025, Bitcoin DeFi is poised for exponential growth. I predict that the total value locked (TVL) on Bitcoin L2s will surpass the $24 billion currently represented by wrapped Bitcoin derivatives, which accounts for about 1.2% of the total Bitcoin supply. With Bitcoin’s market cap at $2 trillion, L2 networks will enable users to more securely and efficiently unlock this immense latent value, solidifying Bitcoin’s position as a cornerstone of decentralized finance.
4) Bitcoin ETFs will continue their surge and new crypto-focused ETFs will emerge
The launch of spot Bitcoin ETFs marked a historic milestone, becoming the most successful ETF debut in history. Attracting over $108 billion in assets under management (AUM) within its first year, these ETFs demonstrated unparalleled demand from both retail and institutional investors. Major players like BlackRock, Fidelity, and Ark Invest played pivotal roles in bringing regulated Bitcoin exposure to traditional financial markets, setting the stage for a wave of innovation in crypto-focused ETFs.#BinanceAlphaAlert
