2024 was a remarkable year for cryptocurrency, led by bitcoin reaching an all-time high of $103,992 and gaining 141.72% year-to-date. No doubt, the launch of spot bitcoin ETFs in the US, which attracted $33.56 billion in assets, was a significant factor in bitcoin’s success. Other major cryptocurrencies like Solana (SOL), XRP, and Ether (ETH) also saw substantial gains.
The crypto industry also made significant strides in the regulatory space, with the 2024 US elections bringing in the Donald Trump presidency that is expected to lead a crypto-friendly administration. President-elect Trump has expressed support for cryptocurrency. He looks to create a strategic bitcoin reserve (or crypto reserve) and reshuffle the SEC.
As 2025 takes off, the outlook for crypto is promising. With incoming global stimulus, rising institutional adoption, and rapid improvements in blockchain technology, it is believed that we are entering the Golden Age of Crypto. In this regard, Bitwise has made top predictions for 2025, including continued crypto adoption and growth, as well as significant advancements in blockchain technology.
Read Also: Bitcoin ETFs: A game-changer for crypto adoption or just a flash in the pan?
Crypto’s Top Performers: Bitcoin, Ethereum, and Solana Shine in 2024
The cryptocurrency market’s top trio—BTC, ETH, and SOL—delivered impressive returns in 2024, outpacing all major asset classes. BTC surged 141.72%, ETH gained 75.77%, and SOL rose 127.71%, leaving traditional assets in their wake.
In comparison, the S&P 500 returned 28.07%, gold gained 27.65%, and bonds yielded 3.40%.
Bitwise anticipates that this momentum will continue in 2025, with each of these cryptocurrencies reaching new all-time highs. According to BTC, the price targets for these cryptocurrencies are as follows:
- BTC: $200,000
- ETH: $7,000
- SOL: $750
It is believed that several catalysts will drive this growth, including institutional investment, corporate buying, and a more favorable regulatory environment.
Additionally, the reduction in new BTC supply due to the April 2024 halving will contribute to its price increase.
ETH, despite falling out of favor with some investors in 2024, is expected to experience a narrative shift in 2025. This will be driven by increased activity on Layer 2 blockchains, the growth of stablecoins and tokenized projects, and inflows into spot Ethereum ETFs.
SOL, which surged in 2024 due to its dominance in memecoins, is expected to continue its momentum in 2025. This will be driven by the migration of “serious” projects onto the network, complementing its existing strengths.
While there are potential headwinds, including regulatory challenges and leverage blowouts, the momentum of these top 3 assets is expected to continue in 2025.
Read Also: Will there be a Solana ETF in 2025?
Bitcoin ETFs Poised for Massive Growth in 2025
The launch of bitcoin ETFs in 2024 was just the beginning. Historically, the first year of an ETF’s launch is the slowest, with subsequent years seeing increased growth. This pattern is evident in the launch of gold ETFs in 2004, which saw flows increase significantly in the following years.
Major wirehouses, such as Morgan Stanley and Bank of America, are expected to start offering bitcoin ETFs to their wealth managers in 2025, unlocking trillions of dollars in potential investments.
Investors are also expected to increase their allocations to bitcoin ETFs in 2025, following a pattern of initially small allocations that are gradually increased over time.
Read Also: BTC faces turbulence as Matrixport predicts SEC rejection of Bitcoin ETFs
Coinbase Stock Predicted to Soar
It is also predicted that Coinbase stock will trade above $700 per share in 2025, more than doubling its current price. This would make Coinbase the most valuable brokerage in the world, surpassing Charles Schwab.
The prediction is based on three major catalysts that will drive Coinbase’s growth. Coinbase’s stablecoin business has seen a significant boost, driven by its partnership with Circle, the issuer of USDC. Stablecoin revenue has increased by $162 million, a 31% jump year-to-date. This trend is expected to continue, driven by the growing adoption of stablecoins.
Additionally, Coinbase’s Layer 2 network, Base, has become the top L2 in terms of transactions and total value locked. This growth has translated into significant revenue, with Base generating tens of millions of dollars in revenue each quarter. As more developers, users, and capital flow into the ecosystem, revenue is expected to increase.
In the first three quarters of the year, Coinbase’s stablecoin and Base businesses generated $589 million in revenue, a 106% increase from the same period last year. This growth is driven by asset balances and net new asset flows, which are expected to increase significantly in 2025, pushing revenue above $1 billion annually.
Read Also: Bitcoin may hit $200,000 in 2025—Bitwise
Crypto Unicorn IPOs Expected to Surge in 2025
After a quiet period, the crypto industry is poised for a wave of initial public offerings (IPOs) in 2025. The current market conditions, including rising crypto prices, growing investor demand, and surging institutional adoption, have created a favorable environment for crypto companies to go public. Several prominent crypto companies are expected to debut on public markets in 2025. These include:
- Circle: The issuer of the USDC stablecoin has been preparing for an IPO and may leverage its strong market position and expansion into new financial services.
- Figure: This blockchain-based financial services company has been exploring an IPO since 2023 and may capitalize on Wall Street’s growing interest in tokenization.
- Kraken: The US-based crypto exchange has been considering an IPO since 2021 and may revive its plans in 2025.
- Anchorage: As a federally chartered bank providing infrastructure services for digital assets, Anchorage may leverage its unique position and comprehensive crypto services for a public listing.
- Chainalysis: The market leader in blockchain compliance and intelligence services may go public in 2025, driven by its growth trajectory and the increasing importance of compliance in the crypto industry.
Read Also: Exchange Tokens: Trends, Predictions, and Opportunities for 2025 for BNB, BGB, KCS, and GT.
Victor Solomon is a crypto analyst at Crypto Asset Buyer (CAB). Over the years, Victor has gained valuable expertise in market analysis, risk management, and community management within the cryptocurrency ecosystem. The founder of Soluvic Crypto Hub, a crypto community where he equips newbies in the space, Victor’s mission is to empower individuals to uncover opportunities and safely navigate risks in the blockchain industry. Victor’s academic foundation includes a BSc. (Ed) in Mathematics, a credential that underpins his strong analytical and problem-solving abilities. Currently, he is expanding his technical expertise as a Software Development student at Brigham Young University. He is an Ex African Manager of Newscrypto.
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