- Pro-crypto politicians make the crypto industry optimistic.
- Consolidation is expected as incumbents expand their global presence.
- Seven experts share their predictions, including one who predicts a sharp drop in prices.
What’s next for crypto?
That’s the big question after 2024 saw the launch of crypto exchange-traded funds, a further expansion of Wall Street and the election of Donald Trump.
We asked the experts what they’ll be watching for in 2025.
Michael Harvey, Franchise Business Manager, Galaxy Digital
One of the most exciting trends already taking shape is the awakening of decentralized finance.
Since its emergence in the summer of 2020, DeFi has proven to be a truly disruptive force. However, he has been somewhat underrated over the past couple of years.
Now, with the likelihood of forward-looking regulations being adopted, the space is invigorated.
Established Ethereum protocols like Uniswap, Aave, and Compound, as well as Layer 2 chains like Arbitrum, Optimism, and Base, have been constantly growing and improving.
These advances, combined with a more favorable regulatory environment and improved user experience, pave the way for significant growth.
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The next generation of DeFi on Ethereum is here, as evidenced by protocols such as Spark, Ethena, and several DEX aggregators that have significantly improved the trading experience.
Solana has proven its success in DeFi, with DEX volumes regularly surpassing those of Ethereum and related chains.
Bitcoin should not be left out of the DeFi conversation either. Efforts are underway to make the original cryptocurrency more programmable, leveraging its unmatched security to support ordinals, the BRC-20 token protocol, and an expanding BTCFi ecosystem.
Amar Kuchinad, Global CEO, Copper.co
Traditional financial market participants will increasingly experiment with digital assets in 2025.
A key area of continued adoption will be the splitting of baskets of assets, particularly those backed by government bonds, as we have seen with products such as BlackRock’s BUIDL and BENJI tokenized money market funds of Franklin.
The benefits of greater market liquidity and improved costs of capital could encourage some market participants to accelerate their adoption.
We will likely see a wave of traditional and agile financial market infrastructure providers adopting blockchain-based solutions.
Some may even deploy simplified versions of collateral and risk management frameworks, taking incremental steps to realize the vaunted promises of blockchain: faster settlement, reduced risk, more efficient capital management, and lower operational costs.
If public blockchains will not be put aside, their role could evolve.
Instead of serving as a continuous settlement layer – an approach limited by scalability issues – public blockchains could function as a clearing layer, providing periodic consolidation of transactions while transferring real-time operations to private systems or more efficient hybrids.
Ben Caselin, Marketing Director, VALR
Over the coming year, there are three important developments to watch closely.
First, as President Trump takes office and attempts are made to adopt Bitcoin as a strategic reserve asset, we can expect more countries to take significant steps in this direction.
Don’t expect things to go smoothly; continued growth will generate more resistance.
Second, while a change in fiscal policy may prove favorable for markets overall, a major crash is already brewing.
The incessant issuance of new speculative tokens is nothing better than reckless money printing by central banks and could prove detrimental in the long term.
Third, we can expect further regional consolidation as licensed, national and continental exchanges come to the fore, particularly in emerging markets, and the relative decline of unregulated exchanges globally.
Aside from that, Bitcoin is in an exceptionally good position and looks poised for continued growth and increased volatility.
Morgan Krupetsky, Head of Institutions and Capital Markets, Ava Labs
In 2025, we will likely see a significant expansion in the use of tokenized assets across various sectors and asset classes.
Beyond stablecoins and money market funds, tokenization adoption will expand further into stocks, fixed income, and other traditional financial instruments, driven by growing demand for more efficient and more transparent enabling businesses to offer products, services and capabilities.
This shift will be further accelerated if U.S. financial lawmakers decide to repeal or repeal SAB 121, which could pave the way for banks and other regulated financial institutions to further adopt public blockchain infrastructure.
At the same time, traditional Web2-based businesses – those with established customer bases and distribution channels – are expected to increasingly adopt blockchain technology.
This will likely involve incorporating tokenized assets into their platforms for everything from payments to supply chain management, enabling faster, more efficient transactions that ultimately have the potential to increase the speed of money.
As these trends converge, we will begin to see what a more integrated and accessible financial ecosystem could look like, combining the efficiency of blockchain with the scale and reach of established businesses.
This development will pave the way for more widespread use of blockchain-based applications, what we call on-chain finance, further blurring the lines between traditional finance and the emerging digital economy.
Norris Wang, co-founder, Balance.fun
I predict that the total volume of stablecoins will exceed $250 billion by the end of 2025, thanks to increased adoption and pragmatism from global regulators.
Regulation will finally recognize stablecoins as hybrid instruments – part cash, part market instruments.
This change will allow for more nuanced policies, such as allowing returns to be distributed when reserves align with the risk inherent in the digital currency.
While domestic stablecoins will remain tightly regulated, a practical approach to offshore instruments will emerge, focusing on consumer protection rather than pushing the activity into the shadows.
Expect a resurgence in DeFi innovation as developers and investors regain confidence, deeper integration between DeFi and fintech platforms, and a gravitational return of talent to the United States. New York, already the crypto capital of the world, will further strengthen its status.
Chris Yin, CEO, Plume
The crypto landscape of 2025 looks dynamic, with AI, memecoins, real-world assets, dino coins, and community involvement taking center stage.
We’ve seen renewed interest in the intersection of crypto and AI, and we expect continued demand around pioneering AI agents in new use cases, as we’ve seen with Truth Terminal and the success of $GOAT.
However, the real innovation will be in real-world assets. The rise of stablecoins as the fastest-growing digital asset class in 2024 is a testament to the practical utility of real-world assets, especially for institutional adopters.
Mohammed RaafiCEO and co-founder, Fasset
In 2025, we will see high-growth markets like Indonesia and Pakistan driving crypto adoption, not only in commerce, but also in addressing structural inefficiencies.
The tokenization of real estate, for example, has already shown promise, with projects allowing residents in emerging markets to become co-owners of properties in London or New York for less than $100, removing barriers to global real estate investment.
In 2024 alone, more than 60% of new crypto wallets were created in emerging markets, highlighting the growing demand for decentralized financial solutions in regions with limited access to traditional banking systems – a trend that is expected to further increase in 2025.
The information above has been edited for clarity.
Eric Johansson and Liam Kelly cover crypto financing trends for DL News. Do you have any advice? Send them by email to eric@dlnews.com And liam@dlnews.com.
