ETF issuer Bitwise has released its latest forecast report for 2025, stating that 2024 will be a milestone year for cryptocurrencies, but 2025 will mark the beginning of the golden age of crypto.
Here are Bitwise's predictions for the coming year:
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ToggleBit target price: $200,000
Record inflows into Bit ETFs, the reduced new supply caused by the April 2024 halving, and new purchases by corporations and governments will continue to drive Bit higher. If the US government establishes a 1 million Bit strategic reserve, the price could soar to $500,000 or higher.
Ether target price: $7,000
Although Ether grew 75.77% in 2024, a narrative shift is expected in 2025. Increased activity in Layer 2 blockchains (such as Base and Starknet) and inflows into spot Ether ETFs will be in the billions. Growth in stablecoins and Ether-based tokenization projects will also be a key factor.
SOL target price: $750
Solana saw significant gains in 2024 and is expected to maintain momentum. The network will attract other projects to complement its dominance in MEME coins. Institutional investment, corporate purchases, and a better regulatory/political environment will drive growth.
Coinbase stock price will exceed $700
Coinbase's stablecoin business is thriving, thanks to its partnership with USDC issuer Circle. Year-to-date, stablecoin revenue has grown by $162 million (+31%). If the stablecoin trajectory is correct, this trend should continue.
Last year, Coinbase launched Base, a new Ether-based Layer 2 network. It is now a top L2 in terms of trading and TVL. With this growth, revenue has also increased significantly. Base now generates tens of millions in revenue per quarter, and this growth is expected to continue as more developers, users, and capital flow into the ecosystem.
Staking and custody services have generated $589 million in revenue in the first three quarters, up $304 million (+106%) year-over-year. Both are driven by asset balances and net new asset flows. Bitwise expects both to grow significantly in 2025, with these business lines exceeding $1 billion in annual revenue.
Based on the above, Bitwise believes Coinbase is more than just a brokerage and has raised its target price to $700.
At least five crypto unicorns will go public in the US
The crypto IPO market has been relatively quiet in recent years. But Bitwise expects a wave of crypto unicorn IPOs in 2025.
Bitwise's expected candidates include: stablecoin issuer Circle, blockchain finance services company Figure, crypto exchange Kraken, digital asset infrastructure provider Anchorage, and the market leader in blockchain compliance and intelligence services Chainalysis.
(Coinbase valued at only $1.4 billion, will Circle's second IPO be successful?)
AI agent-launched tokens will lead the meme coin frenzy
Bitwise expects the meme coin frenzy to grow even bigger by 2025, led by tokens launched by AI agents. Bitwise also mentioned Clanker, a platform designed for Coinbase's Layer 2 scaling solution, where users only need to tag Clanker on Farcaster to tell the AI agent to launch a token with a given name and image, and it will automatically deploy the token. In less than a month, Clanker has launched over 11,000 tokens and generated over $10.3 million in fees.
While Bitwise also believes that meme coins are unlikely to have real-world applications and most will go to zero, it represents an interesting collision of AI and cryptocurrency, two disruptive technologies worth watching.
The number of countries holding Bit will double
According to BitcoinTreasuries.net, there are currently nine countries holding Bit, with the US leading. Bitwise also expects this number to double by 2025.
This is because the US considering establishing a strategic Bit reserve may trigger a global race among governments to buy Bit. Lawmakers in countries like Poland and Brazil have already proposed bills to push for the establishment of strategic Bit reserves in their respective countries.
Coinbase will enter the S&P 500 index, MicroStrategy will enter the Nasdaq 100 index
Bitwise expects Coinbase and MicroStrategy to potentially be included in these two important indices in the next major update this month, which will passively expose many index-tracking investors to crypto-related stocks.
The US will relax guidance on crypto in 401(k) plans
With the new administration in place, Bitwise expects the Department of Labor to relax guidance on crypto in 401(k) retirement plans.
401(k) plans hold $8 trillion in assets. More funds are flowing into these funds every week. If crypto can capture 1% of 401(k) assets, it would bring $80 billion in new capital to the space, with steady inflows thereafter. If it captures 3%, it would reach $240 billion.
Stablecoin assets will more than double to over $400 billion
The market cap of stablecoins is expected to reach $400 billion or more by 2025. The following four catalysts will drive this growth:
- Stablecoin regulation
- Global trade and remittances
- Fintech integration
- Crypto bull market growth
The RWA market will reach $50 billion
Tokenization provides instant settlement, significantly lower costs than traditional securitization, and 24/7 liquidity, while bringing transparency and accessibility to almost all asset classes. Bitwise expects the tokenized RWA market to reach $50 billion next year and has the potential to embark on index-like growth.
Furthermore, Bitwise makes a bolder prediction: by 2029, Bit will surpass the $18 trillion gold market, with Bit prices exceeding $1 million.
Risk Warning
Crypto asset investments carry high risks, with prices that may fluctuate wildly, and you may lose your entire principal. Please assess the risks carefully.
