The crypto industry is ever-evolving, and 2025 promises to be a transformative year, according to leading asset manager, 21Shares. Ahead of 2025, the asset management company and crypto exchange-traded funds (ETFs) issuer, has unveiled 12 predictions that outline the trajectory of the industry, spotlighting bitcoin’s growing adoption, Ethereum’s evolution, and groundbreaking developments in decentralized finance (DeFi) and stablecoins.
2025 crypto predictions
1. Another nation-state will adopt bitcoin as a strategic reserve asset
Bitcoin became increasingly significant on the global stage in 2024, solidifying its role as a store of value that offers a hedge against economic instability and currency devaluation. Notably, institutions such as MicroStrategy and Metaplanet continued to expand their BTC holdings, with countries like El Salvador following suit. Moreover, Bhutan and Russia also embraced BTC, with Bhutan earning $800 million through hydro-powered mining and Russia legalizing Bitcoin mining and international payments.
Looking ahead to 2025, 21Shares believes that more countries, including Argentina, may adopt BTC as a strategic reserve asset, encouraged by the crypto-forward policies of leaders like Argentina’s President Milei and El Salvador’s President Bukele. The firm wrote: “We’re witnessing a clear shift, as nationstates increasingly embrace the Bitcoin standard. That being said, in 2025, we expect to see countries like Argentina adopt Bitcoin as a strategic reserve asset.” It added that geopolitical tensions and economic concerns, particularly U.S. debt and China’s economic situation, are likely to push more nations and institutions towards BTC and gold as reliable stores of value, potentially driving both assets to new highs in 2025.
2. Bitcoin’s scalability solutions will drive total value locked (TVL) to $10 billion
Bitcoin’s scalability has been historically limited, but layer-2 solutions like Stacks are changing the narrative. Through the enablement of smart contracts and fast transactions, projects such as Stacks and technologies like BitVM are expanding Bitcoin’s utility. According to 21Shares, in 2025, these innovations could propel total value locked (TVL) on the Bitcoin network to $10 billion. “We anticipate Bitcoin’s TVL to grow beyond $10 billion in 2025, establishing Bitcoin’s broader utility beyond
a store-of-value,” part of the report read.
3. Ethereum’s revenue renaissance will begin in 2025
Despite competition from Layer 1 chains like Solana, Ethereum is poised for a comeback, 21Shares reported. Upgrades like EIP-4844 (ProtoDanksharding) and revenue-sharing mechanisms with Layer 2s will drive growth. By 2025, the firm expects Ethereum to regain its revenue strength, benefiting from increased demand for its ecosystem and partnerships with Web2 and traditional finance players. “Looking ahead, Web2 firms like Robinhood and PayPal, along with traditional finance entities like Visa, are likely to launch their own L2s, leveraging cost-efficiency and scalability to unlock new revenue streams and serve a growing demand for decentralized applications,” 21Shares wrote.
Read also: Ethereum Verge Upgrade to Enable Nodes on Mobile Devices and Smartwatches
4. Institutional adoption of crypto ETPs to hit $250 billion assets under management (AUM)
The approval of bitcoin and Ether exchange-traded products (ETPs) has unlocked new institutional interest. 21Shares projects that crypto ETPs could reach $250 billion in assets under management globally by 2025, with options on Bitcoin ETFs adding market depth. “[…] We anticipate that global crypto ETPs could reach $250 billion in AUM, with at least one U.S.-based Bitcoin ETF likely to rank among the top 25 largest ETFs worldwide,” the report added. Notably, the global AUM for crypto ETPs reached approximately $100 billion in October 2024.
5. Solana to reach an all-time high in total value locked
Solana has emerged as a formidable competitor to Ethereum, thanks to its speed and low transaction costs. Notably, partnerships with giants like PayPal, Visa, and Stripe have accelerated its adoption. Moreover, technical advancements, including the Firedancer validator, promise to resolve network outage issues on the blockchain. According to 21Shares, Solana is expected to attract more institutional players in 2025, cementing its position as a leader in decentralized finance (DeFi).
However, 21Shares does not expect Solana to flip Ethereum in 2025 in terms of market capitalization and price value. “While we don’t anticipate a full “flippening”, Solana is primed to outperform and capture more market share from Ethereum through improved UX and infrastructure,” the firm wrote. The firm added: “Solana’s expanding role in TradFi is expected to set the stage for traditional financial products such as Solana futures on the CME or U.S.-domiciled Solana ETFs. While ETF approval may not happen in 2025, the likelihood is expected to increase as we approach the end of the year and into the first half of 2026.”
Read also: Solana’s record-breaking revenue milestones in November.
6. User-friendly layer 1s will drive the gowth of the next-generation of smart-contract platforms
Layer 1 networks like Sui and The Open Network (TON) are set to challenge Ethereum’s dominance by prioritizing user accessibility. Sui’s partnerships with gaming platforms and TON’s integration with Telegram are driving adoption. These streamlined platforms are likely to surpass Ethereum in onboarding new users, especially for less security-intensive applications. “Looking to 2025, we believe alternative L1 networks will make significant strides in client-facing applications, surpassing Ethereum in new user adoption,” 21Shares predicts.
7. Revenue-sharing to change DeFi investment case
Decentralized finance (DeFi) is on the cusp of a transformation. It bears mentioning that projects like Uniswap are introducing revenue-sharing mechanisms, shifting their token models from governance-only to utility-driven. This shift, coupled with clearer regulations, is expected to attract more investors, making DeFi tokens more appealing in 2025. Accordingly, 21Shares said: “We anticipate that greater regulatory clarity could drive a shift next year, with more DeFi projects adopting fee-sharing mechanisms and incentive structures, reshaping the DeFi investment landscape and attracting more investors in 2025.”
Related: The Future of DeFi: 2024 Trends and What’s Coming in 2025
8. Stablecoins to deepen integration across traditional sectors
Stablecoins have solidified their role as a bridge between traditional and decentralized finance. From facilitating remittances in the Philippines to integrating with European regulations under MiCA, stablecoins are becoming indispensable. According to 21Shares, in 2025, further adoption in sectors like e-commerce and remittances will reinforce their significance, particularly in regions like Turkey and the UAE. “Looking ahead, we expect growing adoption of stablecoins by nation-states, banks, and established Web2 companies, either through deeper integrations or the launch of proprietary solutions, marking a significant shift toward mainstream acceptance across traditional sectors.”
Related: Coinbase delists multiple stablecoins in EU markets
Read also: UK to pass stablecoin legislation as Trump promises to lessen digital assets regulation
9. Tokenization to advance in private credit
The tokenization of real-world assets like stocks, bonds, and real estate is set to advance finance. By leveraging blockchain’s transparency and efficiency, traditional institutions are adopting tokenized models. This trend could unlock over $1 trillion in market value by 2025 per 21Shares’ report, making blockchain technology central to the financial world. “While other tokenization sectors are also set to grow in 2025, we anticipate private credit to emerge as the fastest-growing subsector,” the asset manager concluded.
10. Many Jurisdictions to reconsider retail crypto Ban, as more investor protection comes into effect
Highlighting several global regulatory advancements, 21Shares predicts that many jurisdictions would reconsider retail crypto bans in 2025. In the U.S., the firm highlighted the emergence of clearer regulations, including the FIT21 Act, and the potential repeal of restrictive policies like SAB121. Further, it wrote that Europe’s MiCA regulation, effective in December 2024, and the potential inclusion of crypto in UCITS could attract more crypto projects and institutional investors.
Per the report, retail access to crypto ETNs might emerge in the U.K by 2025, bolstered by investor protections under the Property Bill. Also, the report added that Asia is fostering further growth, citing South Korea’s potential ETF lift and Dubai’s crypto-friendly regulatory environment. These trends signal a global shift towards more favourable retail crypto access, 21Shares surmised.
Read also: UK to Recognize Crypto as Personal Property
11. Decentralized broadband solutions to maintain their momentum
In its 2024 report, 21Shares predicts that decentralized broadband solutions, exemplified by Helium, will continue to gain momentum in 2025. Helium’s decentralized wireless network, which allows individuals to set up affordable, long-range hotspots, has already reached over 350,000 hotspots worldwide, reducing reliance on costly cellular infrastructure. Helium Mobile’s introduction of affordable mobile plans in early 2024, priced at just $20 per month for unlimited talk, text, and data, has driven significant growth, with a 385% increase in users by October 2024. Consequently, 21Shares anticipates continued growth in the Decentralized Physical Infrastructure Network (DePIN) sector in the coming year.
Read also: Decentralized Science (DeSci)—Just another buzzword or … ?
12. Blockchain to emerge as AI’s watchdog, safeguarding digital truth
Highlighting some of the key challenges and risks associated with artificial intelligence such as deepfakes, 21Shares predicts that blockchain will play a crucial role in safeguarding digital truth in the age of AI. With AI technologies like deepfakes threatening data integrity, blockchain’s unique features would enable content fingerprinting and an audit trail to verify information sources.
Read also: How to Build a Diversified Crypto Portfolio
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been studying the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
