Bitcoin’s gradual evolution from a static chain to a dynamic ecosystem is reshaping its identity. The past few years since 2022 have been remarkable in the history of Bitcoin, citing the introduction of token standards (BRC-20), utility, and new possibilities for the proof of work (PoW) blockchain network.
Notably, the first new possibility on the Bitcoin protocol surfaced in late 2022 when Casey Rodarmor made the first official mainnet inscription. This historic development led to the introduction of Bitcoin Ordinals, marking the existence of non-fungible tokens (NFTs) on the network. The Bitcoin network is now beyond enabling bitcoin currency (BTC).
Rodarmor went further to introduce a related protocol dubbed Runes in April 2024 during the fourth bitcoin halving. This landmark development onboarded a novel fungible token standard on Bitcoin akin to Ethereum’s ERC-20.
Though uncertainty surrounds the demand for innovations mentioned above, including Bitcoin-based memecoins and “culturecoins”, BTC price recorded exponential growth in 2024 to surpass $100K. What are the expectations for the Bitcoin network and BTC asset in 2025?
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The Bitcoin network: Projections for 2025
The emergence of Runes and Ordinals signaled Bitcoin’s expansion into memecoins and NFTs. However, the adoption and investor interest in these emerging categories was generally low in 2024 despite signs of early demand and top Runes like DOG•GO•TO•THE•MOON and PUPS•WORLD•PEACE commanding nine-figure valuations.
In its Crypto Theses 2025 publication, leading blockchain analytics and research firm Messari weighed in on the growth potential of the Bitcoin network, noting that development will likely continue to move forward. “The Bitcoin network is going through an identity change, and while it seems like development will continue to move forward, the actual demand for these new categories is uncertain,” the report said.
Citing that Bitcoin is the largest chain by economic value, Messari sees high possibility of attention eventually shifting towards Runes on Bitcoin in 2025 and beyond. “On Runes and Ordinals, we think the dust has largely settled, and the opportunity is enticing into 2025”, the report added. According to the firm, this would happen as memecoins on both Solana and Ethereum continue their upward movement.
For Ordinals, Messari anticipates a resurgence in Bitcoin NFTs market in 2025, stating categorically that any upsurge in NFT sentiment could elevate Ordinals collections like Bitcoin Puppets and Node Monkes, which have already fostered active online communities.
However, the firm highlighted persisting challenges that could hinder growth in the Bitcoin ecosystem in 2025, including slow block times, limited programmability, and subpar liquidity. “We have highlighted that for the next leg up to occur for these assets, there has to be continued evolution in the user experience, which is currently characterized by slow block times, subpar liquidity, and limited programmability,” Messari noted.
On the programmability front, BTC staking and programmable applications remain nascent but worth monitoring according to the report. While predicting that AVSs and layers on Bitcoin could claim a high level of decentralization and economic security compared to Ethereum, Messari noted that real demand is unsubstantiated.
It added that competing with performance-optimized networks like Solana and Base may be an uphill battle for Bitcoin developers, citing that “the Bitcoin network has never been and most likely never will be optimized for programmability, utility, or performance.”
Nevertheless, the report submitted that the Bitcoin ecosystem’s untapped market potential is massive. “Even a low single-digit penetration rate for BTC utility could lead to an inflow of value exceeding $30 billion,” Messari noted.
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Institutions to drive BTC asset growth in 2025
Bitcoin’s status as the leading cryptoasset has been solidified with the launch of BTC ETFs in the United States and Hong Kong, which began gaining traction in 2024. Speculating on the growth potential of BTC in 2025, the analytics company asserts that “institutions will slowly become the primary drivers of daily BTC price action over time.”
Notably, institutional inflows have exceeded expectations, with U.S spot BTC ETFs topping $5 billion in cumulative total value traded within their first year of launch. In November 2024, BTC also surpassed silver, becoming the world’s eighth most valuable asset, a milestone partially driven by these institutional investments.
Per Messari’s 2025 crypto thesis, this steady influx has helped BTC transition into the early middle stages of its journey as the world’s leading store of value. Accordingly, the firm predicts that ETF inflows will continue to grow in 2025, further stabilizing bitcoin’s price and broadening its appeal as a mature investment vehicle. “The smoother, more consistent spot inflows from institutions should lead to fewer reflexive, leverage-driven moves over time, helping Bitcoin mature as an asset,” part of the report read.
Additionally, the report pinpointed that positive regulatory changes under the new Donald Trump administration have created an optimistic outlook for BTC in 2025 and beyond. Promises such as removing capital gains taxes on BTC transactions and supporting domestic Bitcoin mining could significantly boost adoption. If implemented, these measures could attract more participants to the market, fostering greater liquidity and price stability.
“Following the 2024 election, where the impact of clear and positive crypto reform became a needle moving issue across all governmental branches, we believe crypto is on the verge of bipartisan support. The implications of this are momentous, and helps clear the regulatory overhang over Bitcoin for the foreseeable future,” Messari concluded.
Read also: Governments with the biggest bitcoins in the world
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.
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