Recently, the American exchange group Coinbase released a 2025 outlook report, in which David Duong, the head of research, stated that the cryptocurrency market is heading towards a new peak of transformation and growth in 2025. As asset categories gradually mature and institutional adoption rates increase rapidly, the application scenarios in various fields are also expanding. In the past year, the United States approved spot ETFs, and the tokenization of crypto financial products has grown rapidly. The stablecoin market has achieved deep integration with the global payment framework.
Looking back, these achievements did not come easily. However, rather than saying that these successes are the culmination of years of effort, it is more accurate to say that they are just the beginning of a larger chapter. Particularly noteworthy is that the cryptocurrency market has proven its long-term value as an alternative asset class despite the interest rate hikes, regulatory pressures, and uncertainties in 2023.
Although the market in 2024 continued the trajectory of the previous bull market, it also presented some significant differences: the gradual replacement of “web3” with the more appropriate “onchain,” and the shift in investment strategies from narrative-driven to fundamental demand. More importantly, Bitcoin’s dominance has increased, and the innovation of decentralized finance has unlocked the potential of blockchain technology and laid the foundation for the establishment of a new financial ecosystem.
Looking ahead, the cryptocurrency ecosystem in 2025 is full of countless exciting developments. From a market perspective, we will see the emergence of decentralized peer-to-peer exchanges, prediction markets, and application innovations combining artificial intelligence (AI) and crypto wallets. At the same time, there is enormous potential for stablecoins, payment solutions, and compliant on-chain capital formation to align with mainstream finance.
The following is a summary of the overall outlook in the report:
1. Post-Trump Era: Still Facing Inflation Challenges
In the 2024 U.S. presidential election, Trump’s re-election had a significant impact on the cryptocurrency market, driving up the price of Bitcoin. However, after entering 2025, the market’s focus shifted to the monetary policy of the Federal Reserve. While the Federal Reserve is gradually reducing inflation, it faces the challenge of achieving full employment, and expansionary fiscal policies (such as tax cuts or tariffs) may exacerbate inflationary pressures. Despite the inflation rate dropping to 2.7%, the core inflation remains at 3.3%, higher than the target value.
2. The Most Crypto-Friendly U.S. Congress in History
The U.S. Congress in 2025 may become one of the most supportive legislative bodies for cryptocurrencies ever. The bipartisan support for clarifying cryptocurrency regulations indicates that the United States is gradually transforming regulatory resistance into regulatory impetus. Additionally, new policy proposals, including Bitcoin strategic reserves, may provide long-term support for the cryptocurrency market.
3. Potential Diversification of Cryptocurrency ETFs
Since the approval of Bitcoin and Ethereum spot ETFs in the United States in 2024, the demand for the cryptocurrency market has surged, with net fund inflows reaching $30.7 billion, far exceeding the scale of previous ETF launches. The introduction of these products not only solidifies Bitcoin’s market dominance but also may drive the listing of more token ETFs in the future, although this process comes with new challenges in terms of trading efficiency and risk management.
4. Stablecoins: A “Killer Application” for the Cryptocurrency Market
The stablecoin market grew by 48% in 2024, with a total market value of $193 billion, and is expected to reach nearly $3 trillion in the next five years. Due to its fast and low-cost transaction characteristics, stablecoins are gradually becoming the preferred choice for cross-border payments and commercial applications. Additionally, the expansion of stablecoin infrastructure by large payment companies such as Visa and Stripe further accelerates its adoption.
5. Tokenization Revolution: The Future of Asset Digitization
In 2024, the tokenization of physical assets grew by over 60%, with a market size of $13.5 billion. Traditional financial institutions and asset management companies such as BlackRock and Franklin are gradually adopting tokenization technology to achieve cross-border settlement and round-the-clock trading. Although this field faces challenges of liquidity dispersion and regulation, its future potential cannot be ignored.
6. DeFi’s Recovery: From Lows to Robust Development
Decentralized finance (DeFi) has gone through a process of transitioning from high-risk returns to steady growth. With the gradual clarification of the regulatory environment in the United States, DeFi is expected to attract more institutional investors. Federal Reserve officials also recognize the potential of DeFi in payment and trading platforms, which brings more positive effects to this field.
7. Telegram Trading Bots: Hidden Profit Center in Cryptocurrency
In 2024, Telegram trading bots became the invisible champions of the cryptocurrency industry, surpassing many DeFi protocols in terms of revenue. Its user-friendly interface and convenient token trading functions have attracted a large number of users and generated high profits. Although transaction fees may decrease due to competition, this market will remain strong in 2025.
8. Intersection of Artificial Intelligence and Cryptocurrency
Artificial intelligence (AI) is bringing new breakthrough applications to the cryptocurrency market, including automated wallet controls and social media interactions. Although current investment focus is mainly on tokens related to AI concepts, sustainable value growth in the future may appear in the infrastructure layer.
9. Multi-Chain Future: Coexistence or Zero-Sum Game?
While Ethereum remains the center of DeFi activities, emerging blockchains are challenging its position through low costs and high efficiency. The future development of a multi-chain ecosystem may depend on the differentiated advantages of each chain, and the progress of application chains and Layer 2 solutions further drives innovation in the overall blockchain field.
10. User Experience: Simplification is Key
Simplified user experience is crucial for the popularization of cryptocurrency technology. Technological advancements, including account abstraction and cross-chain interoperability, are helping to lower the entry barriers for users. In the future, applications will focus more on attracting users through seamless interfaces to enhance user stickiness.
The report also includes updates on Bitcoin, Ethereum, Solana, tokenization, regulation, and Coinbase Ventures. For example, it specifically mentions Ethereum’s Pectra upgrade, which is expected to be launched in the first quarter of 2025 and is currently in the developer testing phase. This upgrade encompasses numerous Ethereum Improvement Proposals (EIPs) aimed at further enhancing network performance, promoting scalability of decentralized applications, and optimizing user experience.
For further interest, it is recommended to read the complete report.
Risk Disclaimer:
Cryptocurrency investment carries a high level of risk, and prices may fluctuate dramatically, resulting in the loss of your entire investment. Please carefully assess the risks.