Author: Mark Greenberg
Compiled by: Bai Hua Blockchain
Mark Greenberg, Head of Global Consumer Business at Kraken
Looking ahead to 2025, cryptocurrencies will play an increasingly important role in shaping the evolving financial landscape. From their gradual inclusion in diversified investment portfolios to the development of blockchain-driven financial services, cryptocurrencies will continue to have a profound impact on traditional finance.
This year, as trust, accessibility, and innovation continue to grow, cryptocurrencies will achieve deeper integration into mainstream financial strategies. Here are six trends I'm most focused on for the coming 2025.
1. Cryptocurrencies become an essential component of an ideal investment portfolio
The historic asymmetric return characteristics of cryptocurrencies make it increasingly difficult for investors to justify not including them in their portfolios.
By 2025, strategies like dollar-cost averaging (DCA) will continue to gain popularity, allowing investors to start with small investments and gradually increase their positions. I expect that methods to facilitate gradual familiarity with this asset class will accelerate in the new year.
2. Crypto platforms will focus on providing clients with medium to long-term wealth accumulation strategies, with trust as the biggest differentiating factor
In 2025, trading platforms and crypto platforms will shift their product strategies to offer clients solutions for medium to long-term wealth accumulation. The foundation of these services will be earning yields through stablecoin holdings, with additional complex products and services layered on top.
Given the lessons learned from the collapses of FTX, Celsius, and Voyager in the previous cycle, clients will be more focused on the trustworthiness, security, and longevity of platforms when choosing how to access these opportunities.
3. The stablecoin market will see its first real challenge to the existing giants, with users as the primary beneficiaries
The stablecoin market has long been dominated by Tether and USDC, and this is no secret. In 2025, these two giants will face their first real competition, as a new generation of stablecoins will emerge, challenging the current leaders with advantages in regulation and regional presence.
This competition will bring affordability to users, who will have more tools to manage their digital fiat, and the adoption of alternative Tokens will also help manage counterparty risk for stablecoin issuers.
4. Bitcoin will gain more mainstream attention during inflationary rebounds
Some analysts predict that inflation may remain above the Federal Reserve's 2% target for an extended period. In the past few years, everyone in the Western world has experienced firsthand the persistent devaluation of fiat currency for the first time since the 1970s.
Bitcoin's fixed supply - something that even gold cannot provide - may drive more mainstream recognition of its anti-inflationary value proposition. This will encourage more people to adopt Bitcoin as a store of value to protect their wealth in the face of fiat devaluation.
5. Crypto market volatility will decrease
Over the past decade, the overall volatility of cryptocurrencies has been on a downward trend. This is because increased adoption has brought more liquidity, making the market less susceptible to violent price fluctuations.
As ETFs allow more investors to access cryptocurrencies, we expect the volatility of the crypto market to continue to decrease. This may make cryptocurrencies more attractive to investors with higher risk tolerance (and provide support for strategies like dollar-cost averaging (DCA)).
6. A new generation of cryptocurrency-based banking services will go mainstream
We are already seeing the launch of new investment products - such as money market funds - on different blockchains. Traditional financial institutions have recognized and are leveraging the efficiency gains and the ability to create entirely new markets that this technology enables.
By 2025, I expect more familiar financial products will be built and brought to market on blockchains - including payments, term deposits, high-yield savings accounts, credit cards, lending, and more.
7. Conclusion: 2025 - Cryptocurrencies Reach the Mainstream Stage
In 2025, the maturation of the cryptocurrency market will usher in a new era of opportunity and stability for investors and institutions. Whether it's the mainstream adoption of Bitcoin as a store of value, the emergence of competitive stablecoins, or platforms prioritizing long-term wealth accumulation strategies, the influence of cryptocurrencies will further expand into the financial world.
With trust and accessibility at its core, this year will be a pivotal moment for cryptocurrencies to solidify their position as a critical pillar in the modern financial ecosystem.
Link to the article: https://www.hellobtc.com/kp/du/01/5628.html
Source: https://blog.kraken.com/news/industry-news/6-trends-to-follow-in-2025-as-crypto-hits-the-mainstream
