Recently, the US exchange group Coinbase released a 2025 Outlook Report, in which the research director David Duong stated that in 2025, the cryptocurrency market is heading towards a new peak of transformation and growth. As the asset class gradually matures, the institutional adoption rate is rising rapidly, and the application scenarios in various fields are also constantly expanding. In the past year, the US has approved spot ETFs, the tokenization of crypto financial products has grown rapidly, and the stablecoin market has achieved deep integration with the global payment framework.
Looking back, the achievements have not come easily. However, rather than saying these successes are the pinnacle of years of effort, it would be more accurate to say that they are just the beginning of a larger chapter. Particularly noteworthy is that the crypto market, after experiencing interest rate hikes, regulatory pressure, and uncertainty in 2023, has proven the long-term value of cryptocurrencies as an alternative asset class through its resilience.
Although the market uptrend in 2024 continued the trajectory of the previous bull market, it also presented some notable differences: from "web3" being gradually replaced by the more fitting "onchain", to investment strategies shifting from narrative-driven to fundamental demand-driven. More importantly, Bitcoin's dominance has risen, the innovations in DeFi have unlocked the potential of blockchain technology, and laid the foundation for the establishment of a new financial ecosystem.
Looking ahead, the crypto ecosystem in 2025 is full of countless exciting developments. From a market perspective, we will see the emergence of decentralized peer-to-peer exchanges, prediction markets, and application innovations that combine artificial intelligence (AI) and crypto wallets. At the same time, we also see huge potential for integration with mainstream finance in terms of stablecoins, payment solutions, and compliant on-chain capital formation.
The following is a summary of the overall outlook from the report:
Table of Contents
Toggle1. After the Trump effect, still need to face the challenge of inflation
In the 2024 US presidential election, Trump was re-elected, which had a significant impact on the crypto market, driving up the price of Bitcoin. However, after entering 2025, the market's focus shifted to the Federal Reserve's monetary policy. While the Federal Reserve is slowly reducing inflation, it faces the challenge of achieving full employment, and the expansionary fiscal policy (such as tax cuts or tariffs) may exacerbate inflationary pressures. Although the inflation rate has dropped to 2.7%, core inflation is still at 3.3%, higher than the target.
2. The most crypto-friendly US Congress in history
The US Congress in 2025 may become one of the most supportive legislative bodies for cryptocurrencies in history. The bipartisan support for promoting clarity in crypto regulations shows that the US is gradually shifting from resistance to driving force in regulation. At the same time, new policy proposals, including a Bitcoin strategic reserve, may also provide long-term support for the crypto market.
3. Cryptocurrency ETFs are expected to be diversified
After the US approved spot Bitcoin and Ethereum ETFs in 2024, demand in the crypto market has surged rapidly, with net inflows reaching $30.7 billion, far exceeding the typical startup capital for ETFs. The launch of these products not only solidified Bitcoin's market dominance, but may also pave the way for more token ETFs to be listed in the future, although this process comes with new challenges in trading efficiency and risk management.
4. Stablecoins: The "killer app" of the crypto market
The stablecoin market grew 48% in 2024, reaching a total market cap of $193 billion, and is expected to reach nearly $3 trillion in the next five years. Stablecoins are gradually becoming the preferred choice for cross-border payments and commercial applications due to their fast and low-cost transaction characteristics. Meanwhile, the expansion of stablecoin infrastructure by large payment companies (such as Visa and Stripe) has further accelerated their adoption.
5. The tokenization revolution: The future of asset digitalization
In 2024, the tokenization of physical assets grew by more than 60%, with a market size of $13.5 billion. Traditional financial institutions and asset management firms, such as BlackRock and Franklin, are gradually adopting tokenization technology to enable cross-border settlement and 24/7 trading. Although this field faces challenges in liquidity fragmentation and regulation, its future potential cannot be ignored.
6. The revival of DeFi: From the trough to steady growth
Decentralized Finance (DeFi) has gone through a process from high-risk returns to steady growth. As the US regulatory environment becomes clearer, DeFi is expected to attract more institutional investors. Federal Reserve officials also recognize the potential of DeFi in payment and trading platforms, which brings more positive effects to this field.
7. Telegram trading bots: The hidden crypto profit center
In 2024, Telegram trading bots became the unsung champion of the crypto industry, generating revenue exceeding many DeFi protocols. Their user-friendly interface and convenient token trading features have attracted a large number of users and generated substantial profits. Although trading fees may decrease due to competition, this market is expected to remain strong in 2025.
8. The intersection of AI and cryptocurrencies
Artificial Intelligence (AI) is bringing new breakthrough applications to the crypto market, including automated wallet control and social media interaction. Although the current investment focus is on tokens related to the AI concept, more sustainable value growth in the future may emerge at the infrastructure layer.
9. The multi-chain future: Coexistence or zero-sum game?
Although Ethereum remains the center of DeFi activity, emerging blockchains are challenging its position through low-cost and high-efficiency. The future development of the multi-chain ecosystem may depend on the differentiated advantages of each chain, while the progress of application chains and Layer 2 solutions further drives innovation in the overall blockchain field.
10. User experience: Simplification is the key
Simplified user experience is crucial for the widespread adoption of crypto technology. Technological advancements, including account abstraction and cross-chain interoperability, are helping to lower the user entry barrier. In the future, applications will focus more on attracting users through seamless interfaces and enhancing user stickiness.
More report content...
This report also includes updates on Bitcoin, Ethereum, Solana, tokenization, regulation, and Coinbase venture investments. For example, it specifically mentions the Pectra upgrade of Ethereum, which is expected to be launched in the first quarter of 2025 and is currently in the developer testnet phase. This upgrade covers numerous Ethereum Improvement Proposals (EIPs) aimed at further strengthening network performance, promoting the scalability of decentralized applications, and optimizing the user experience.
If you have further interest, it is recommended to read the full report.
Risk Warning
Cryptocurrency investments are highly risky, and their prices may fluctuate dramatically, potentially resulting in the loss of your entire principal. Please carefully evaluate the risks.
