The year 2024 was a milestone for the crypto space: cryptocurrency prices soared to all-time highs, the launch of spot Bitcoin ETFs became the most successful ETF debut in history, and crypto-friendly politicians achieved major victories in Washington. But an even brighter future lies ahead: 2025 is set to usher in the golden era of crypto. Here are 10 predictions for the coming year.

Bitcoin, Ethereum, and Solana Will Hit All-Time Highs

The three leading assets in the crypto space—Bitcoin, Ethereum, and Solana—outperformed all major asset classes in 2024, with gains of 141.72%, 75.77%, and 127.71%, respectively. Meanwhile, the S&P 500 returned 28.07%, gold 27.65%, and bonds 3.40%. We expect this momentum to carry into 2025, with Bitcoin, Ethereum, and Solana all reaching new all-time highs. Here are our projected target prices for each:

Bitcoin – $200,000

Record inflows into Bitcoin ETFs propelled Bitcoin to new heights in 2024. We don’t expect this trend to slow down anytime soon (see below). Combine this demand with the supply reduction from the April 2024 halving and new purchases from corporations and governments… well, we’ve seen this play out before. (Note: If the U.S. government implements a proposed strategic reserve of 1 million Bitcoin, $200,000 could turn into $500,000 or more.)

Ethereum – $7,000

Despite Ethereum’s 75.77% rise in 2024, the second-largest crypto asset has lost favor with many investors, who either shifted focus to Bitcoin or turned to fast-growing competing blockchains. However, as Warren Buffett famously said, “Be fearful when others are greedy, and greedy when others are fearful.” We anticipate a narrative shift for Ethereum in 2025 as activity on Layer 2 blockchains like Base and Starknet accelerates, coupled with multi-billion-dollar inflows into spot Ethereum ETFs. Another catalyst could be a surge in Ethereum-based stablecoins and tokenization projects.

Solana – $750

The “phoenix of cryptocurrency” has risen from the ashes of the 2022 market crash. Fueled by Meme coin mania, it soared to new heights in 2024, making GameStop’s saga look relatively tame. We believe Solana’s momentum is just starting to build. In 2025, a major catalyst will be the migration of “serious” projects to its network, complementing its dominance in Meme coins. Early examples, like the leap made by Render, suggest this trend will accelerate in the coming year.

Catalysts and Potential Headwinds for the Crypto Market

Bitcoin ETFs Will Attract More Inflows

When U.S. spot Bitcoin ETFs launched in January 2024, ETF experts predicted first-year inflows between $5 billion and $15 billion. These ETFs surpassed the upper limit within the first six months. Since their launch, they have recorded $33.6 billion in inflows, setting a new benchmark. We expect 2025 inflows to exceed this figure. Here’s why:

The First Year Is Usually the Slowest

The best historical comparison for Bitcoin ETFs is the launch of gold ETFs in 2004. That year, gold ETFs debuted with $2.6 billion in inflows, sparking widespread excitement. But consider the subsequent years: $5.5 billion in year two, $7.6 billion in year three, $8.7 billion in year four, $16.8 billion in year five, and $28.9 billion in year six (adjusted for inflation). The key takeaway: inflows in the second year often exceed the first, as was the case with gold. A decline in momentum would be unusual.

Major Brokerage Firms Will Get Onboard

When it comes to Bitcoin ETFs, global giants like Morgan Stanley, Merrill Lynch, Bank of America, and Wells Fargo have yet to mobilize their wealth management teams. As a result, these products remain largely inaccessible to many investors. We believe this will change in 2025, as these firms, managing trillions of dollars in assets, begin directing flows into Bitcoin ETFs.

Investors Are Scaling Up

In Bitwise’s seven years of helping financial professionals access crypto, we’ve observed a clear pattern: most investors start with small allocations and gradually increase them. We predict that the majority of investors who bought Bitcoin ETFs in 2024 will double down in 2025.

Coinbase Will Become the Largest Trading Brokerage

In 2023, investors could buy Coinbase stock for $35. Today, it trades at $344, a nearly 10-fold increase. We believe it can go even higher. Our prediction: by 2025, Coinbase’s stock will trade above $700 per share—more than double its current value. This would make Coinbase the most valuable trading brokerage globally, surpassing Charles Schwab. Why? Coinbase is more than just a brokerage. Three major catalysts will help it achieve this milestone:

Stablecoin

Thanks to its partnership with USDC issuer Circle, Coinbase’s stablecoin business is booming. So far, its stablecoin revenue has surged by $162 million (a 31% increase). If our assessment of the stablecoin growth trajectory is correct, this trend is likely to continue.

Base

Last year, Coinbase launched Base, a new EVM-based Layer 2 network. Today, it ranks second in both transaction volume and TVL. With growth comes revenue—substantial revenue. Base now generates tens of millions of dollars in revenue each quarter. As more developers, users, and funds flow into the ecosystem, we expect revenue to keep climbing.

Staking and Custody Services

As of Q3, these two business lines generated $589 million in revenue, an increase of $304 million year-over-year (a 106% growth). Both lines are driven by asset balances and net new asset flows. We anticipate significant growth in both areas in 2025, pushing annual revenue from these segments above $1 billion.

2025 Will Be the “Year of Crypto IPOs”

The past few years have been quiet for cryptocurrency initial public offerings (IPOs). However, we anticipate a wave of crypto unicorn IPOs flooding the market in 2025. \
Why now? The landscape for publicly traded crypto companies has transformed compared to previous years. Rising cryptocurrency prices, growing investor demand, surging institutional adoption, mainstream acceptance of blockchain technology, favorable macroeconomic conditions, and—perhaps most importantly—a warming political climate create the perfect formula for major industry players to go public. Here are five companies likely to debut in 2025:

Circle

USDC, one of the largest stablecoins, has seen its issuer actively preparing for an IPO for some time. Circle’s dominant position in the stablecoin market and its expansion into new financial services could drive its decision to go public.

FIGURE

Known for leveraging blockchain technology to offer services like mortgages, personal loans, and asset tokenization, Figure has reportedly been exploring IPO possibilities since 2023. With Wall Street’s growing fascination with tokenization, now might be the right time.

Kraken

As one of the largest cryptocurrency exchanges in the U.S., Kraken has been considering an IPO since at least 2021. While market conditions delayed those plans, 2025 could see them brought back to the forefront.

Anchorage Digital

Anchorage provides infrastructure services for digital assets with a diversified client base, including investment advisors, asset managers, and venture capital firms. Its status as a federally chartered bank and its comprehensive suite of crypto services make it a strong candidate for going public.

Chainalysis

A leader in blockchain compliance and intelligence services, Chainalysis is a prime contender for entering the IPO market in 2025. Its unique products and growth trajectory, coupled with the increasing importance of compliance in the crypto industry, make it a likely entrant.

AI Agents Will Drive the Next Meme Boom

As we enter 2025, it seems we’re on the brink of an even larger meme craze than in 2024. A recent example is the interaction between a16z’s Marc Andreessen and an autonomous chatbot called Truth Terminal, which led to the AI agent promoting an obscure memecoin—GOAT. What began as a quirky experiment quickly transformed into an asset with a market cap exceeding $1.3 billion, showcasing the immense potential of combining AI with the unpredictable world of memecoins.

However, the most exciting breakthrough is Clanker, an AI agent designed to autonomously deploy tokens through Coinbase’s Layer 2 scaling solution, Base. Users simply tag Clanker in a Farcaster post, instructing it to release a token with a specified name and image. The AI then handles the entire deployment autonomously. In less than a month, Clanker has launched over 11,000 tokens, generating more than $10.3 million in fees.

We believe AI-deployed tokens will fuel a new wave of memecoin frenzy in 2025. Are these memecoins likely to have real-world utility? Unlikely. Will most of them drop to zero? Yes. Yet they represent a fascinating convergence of two transformative technologies—AI and crypto—that’s worth keeping an eye on.

The Number of Bitcoin-Holding Nations Will Double

We don’t know if the U.S. will establish a strategic Bitcoin reserve in 2025, but it’s certainly a possibility. Senator Cynthia Lummis has introduced a bill calling for the U.S. to purchase one million bitcoins over five years, an idea endorsed by President-elect Trump. However, Polymarket estimates the likelihood of this happening at less than 30%, and who are we to argue with the truth? Still, we believe it doesn’t matter. \
The U.S. actively considering a Bitcoin strategic reserve could spark a global arms race, prompting governments to buy Bitcoin sooner rather than later. According to BitcoinTreasuries.net, nine countries currently hold Bitcoin, led by the U.S. We expect this number to double by 2025.

Emerging Crypto Companies Will Join Stock Indexes

The average U.S. investor has little to no exposure to cryptocurrency. As a new asset class, many investors either don’t understand it or prefer to stay away. However, almost every investor holds funds that track the S&P 500 or Nasdaq 100 indexes. Yet, these indexes currently exclude the largest publicly traded crypto companies—Coinbase and MicroStrategy. We anticipate this will change, possibly as soon as the next major rebalancing of these indexes later this month. This shift could have significant implications. \
Consider this: $10 trillion in assets directly track the S&P 500, with an additional $6 trillion benchmarked to it. If Coinbase is added to the index, funds would need to purchase approximately $15 billion worth of its stock. For MicroStrategy, the impact is expected to be smaller, given the relative scale of funds tracking the Nasdaq 100, but still substantial.

Relaxation of 401(k) Rules Will Bring Massive Liquidity

In March 2022, the U.S. Department of Labor issued guidance cautioning 401(k) plan fiduciaries about the significant risks of adding cryptocurrency investment options to their plans. The department even stated it would “undertake an investigative program to protect plan participants from these risks.” \
With the new administration taking office in Washington, we expect the Department of Labor to soften this stance. There are at least 80 billion reasons to do so. \
U.S. 401(k) plans hold $8 trillion in assets, with more funds flowing into these accounts every week. If cryptocurrency were to capture just 1% of 401(k) assets, it would mean $80 billion in new capital entering the space, followed by continuous inflows. A 3% allocation could bring $240 billion. That’s a big deal.

Stablecoins to Reach $400 Billion in Market Cap

The stablecoin boom in 2025 is projected to push the market cap of stablecoins to or beyond $400 billion. Four key catalysts will drive this growth:

Stablecoin Legislation

For Washington’s new crypto-friendly policymakers, passing comprehensive stablecoin legislation is the easiest win. Who will regulate them? What are the appropriate reserve requirements? Major traditional banks like JPMorgan are expected to enter the space once clarity is established.

Fintech Applications

Payment giant Stripe acquired the stablecoin platform Bridge for $1.1 billion in October, calling stablecoins the “superconductors of financial services,” thanks to their speed, accessibility, and low costs. PayPal launched its own stablecoin (PYUSD) in 2023, and Robinhood recently announced plans to collaborate with crypto firms to establish a global stablecoin network. As stablecoins integrate into popular fintech applications, their assets under management and transaction volumes are soaring.

Global Trade and Remittances

Stablecoins are already making inroads into global payments and remittance markets. In 2024, stablecoin transaction volume reached $8.3 trillion, just behind Visa’s $9.9 trillion during the same period. Additionally, stablecoin giant Tether recently facilitated a $45 million crude oil transaction using its USDT, showcasing the potential of stablecoins to power large-scale global trade. As digital dollars continue to disrupt these massive markets, the demand for stablecoins will only grow.

Bull Market Expansion

Finally, the most obvious catalyst: a bull market. Stablecoins’ assets under management typically expand with the growth of the crypto economy. Given our positive outlook for cryptocurrency in 2025, we are equally optimistic about stablecoins.

RWA Market to Exceed $50 Billion

Three years ago, the crypto industry’s “tokenization” of real-world assets (RWAs), including private credit, U.S. Treasury bonds, commodities, and stocks, was valued at less than $2 billion. Today, this market has grown to $137 billion.

What has driven such massive growth? Why tokenize RWAs, representing real assets on a blockchain? It offers instant settlement, significantly lower costs than traditional securitization, and 24/7 liquidity. Additionally, it provides transparency and access to almost all asset classes.

This is why Larry Fink, CEO of BlackRock—a former Bitcoin skeptic—has become one of tokenization’s biggest advocates, stating, “The next generation for markets will be the tokenization of securities.” This remark is particularly notable as it comes from the leader of the world’s largest asset management firm.

In our view, Wall Street is just beginning to realize this potential, signaling an imminent surge of institutional funds into tokenized RWAs. We believe that by 2025, the tokenized RWA market will reach $50 billion, with the potential for exponential growth ahead: Venture firm ParaFi recently predicted the tokenized RWA market could expand to $2 trillion by 2030, while the Global Financial Markets Association forecasts growth to $16 trillion.

Bitcoin Price Will Surpass $1 Million in 2029

When making predictions, people often focus on the upcoming year. But why? As long-term cryptocurrency investors at Bitwise, let’s look further ahead. We believe Bitcoin will surpass the gold market by 2029. Based on the current market value of gold, this means Bitcoin will rise to over $1 million per coin. Why 2029? Bitcoin has historically followed a four-year cycle. While this trend is not guaranteed to continue, 2029 will mark the peak of the next cycle (and also the 20th anniversary of Bitcoin’s creation). If the U.S. announces the purchase of 1 million Bitcoin as part of a Bitcoin strategic reserve, Bitcoin could reach $1 million per coin even faster.

Disclaimer:

1. This article is reprinted from [foresightnews]. The copyright belongs to the original author [Pzai ]. If you have any objection to the reprint, please contact Gate Learn Team, and the team will handle it as soon as possible according to relevant procedures.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute investment advice.
3. The Gate Learn team translated the article into other languages. Copying, distributing, or plagiarizing the translated articles is prohibited unless mentioned.