Steno Research’s latest analysis predicts 2025 as a landmark year for the cryptocurrency sector. The study highlights Bitcoin (BTC) and Ethereum (ETH) as the leading players, driven by transformative regulatory shifts, improving economic conditions, and rising institutional participation.
Bitcoin is anticipated to break the $150,000 mark, while Ethereum is projected to exceed $8,000 by 2025. These forecasts are rooted in several key factors:
- Regulatory Advances: Clearer and more supportive regulatory frameworks are expected to encourage broader investment in digital assets.
- Bitcoin’s Halving Effect: Historical trends link Bitcoin’s halving cycles with price surges, and the upcoming halving event is likely to further boost BTC’s value.
- Economic Support: Favorable macroeconomic trends, such as lower interest rates and increased market liquidity, are set to create an ideal environment for cryptocurrencies.
Ethereum is forecasted to outpace Bitcoin in growth, with the ETH/BTC ratio projected to climb from 0.035 to 0.06. This reflects Ethereum’s expanding influence within the decentralized application (DApp) ecosystem and broader blockchain industry.
The report also points to a sharp increase in institutional investments, particularly through Bitcoin and Ethereum-focused exchange-traded funds (ETFs). Predictions include $48 billion in net inflows for BTC ETFs and $28.5 billion for ETH ETFs, underscoring institutional confidence in cryptocurrency as a legitimate asset class.
Steno Research emphasizes that the adoption of ETFs will solidify Bitcoin and Ethereum’s dominance in the digital currency landscape.
Additionally, decentralized applications (DApps) and alternative cryptocurrencies (altcoins) are expected to thrive. The total value locked (TVL) in DApps is projected to surge to $300 billion in 2025, far exceeding the $180 billion peak achieved in 2021.
Growth in this sector is attributed to:
- Rising On-Chain Transactions: Networks like Ethereum and Solana are expected to see heightened activity.
- Altcoin Momentum: Bitcoin’s market dominance is forecast to drop from 57% to 45%, allowing altcoins to gain significant traction.
The report also links these developments to potential political outcomes, such as Donald Trump’s re-election in the United States. Analysts suggest that Trump’s policies could stimulate blockchain activity, with Ethereum and Solana likely to benefit more than Bitcoin.
Saleem Khan