Coinbase‘s COIN 2025 crypto market outlook highlights five major trends poised to define the cryptocurrency market in the coming year, with stablecoins, tokenization and a regulatory shift leading the way.
Stablecoins remain crypto's ‘killer app', with market capitalization growing 48% in 2024 to reach $193 billion as of Dec. 1.
Coinbase expects this trend to accelerate, moving beyond trading to broader adoption in global commerce and capital flows.
The report estimates stablecoin transaction volumes surpassed $27 trillion in 2024, three times higher than the previous year.
The tokenization of real-world assets (RWA) is another key focus area, having grown over 60% to $13.5 billion in 2024.
Coinbase believes RWA tokenization will streamline financial transactions and expand into areas like private credit, corporate bonds, real estate, and commodities.
On the institutional front, the success of spot Bitcoin ETFs has reshaped demand dynamics, with Coinbase expecting further developments.
The potential approval of ETFs for XRP XRP/USD, Solana SOL/USD and Litecoin LTC/USD could drive limited near-term demand.
However, innovations such as allowing in-kind creations or staking could significantly enhance ETF appeal by narrowing bid-ask spreads and improving alignment with net asset values.
Also Read: Litecoin, HBAR ETFs Could Come Before XRP, Solana: Here’s Why
Decentralized finance (DeFi) is set for a resurgence.
After facing setbacks in the previous cycle, lending protocols and decentralized exchanges (DEXs) have shown resilience, hitting all-time highs in total value locked (TVL).
Innovative applications like decentralized physical infrastructure (DePIN) and prediction markets signal the sector’s evolution.
A pro-crypto regulatory shift in the United States is expected to provide much-needed clarity, with a bipartisan majority in Congress supporting crypto-friendly policies.
Coinbase anticipates regulatory milestones, including stablecoin legislation and an end to regulation-by-enforcement.
Globally, G20 countries and other financial hubs are also moving toward creating digital asset frameworks.
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