With strong footing in 2024, the crypto market has a pipeline that looks promising to make 2025 an even better year than 2024 for the crypto market. As we enter a new year, let’s look back at some of the major events that brought the crypto market to where it is today and what the coming year has in store for the digital assets sector.
2024 and key milestones
The approval of Bitcoin spot ETFs by the SEC earlier this year was a turning point for the crypto market, leading to the highest institutional adoption ever for an asset. Institutional flows saw an impressive $120 billion inflows into BTC ETFs in the first year alone, with Blackrock leading the way with over $54 billion in assets under management, indicating growing institutional confidence in digital assets. Alongside ETFs, companies like MicroStrategy, Hut 8 and Tesla hold huge amounts of bitcoin, with Bitcoin’s value growing as a globalized asset.
Cryptocurrency tracker
2024 has also changed the perception of crypto globally. Donald Trump’s pro-crypto appointments to key regulatory positions, such as the SEC and CFTC, have boosted investor confidence. Additionally, milestones such as Bitcoin crossing $108,000 have prompted institutions, retail investors, and even countries to look at crypto from a new perspective, leading countries like China, Morocco, and Brazil to make policy changes major ones, from the legalization of crypto to the creation of strategic reserves, highlighting the growing legitimacy. and the global appeal of the asset class. Such developments have laid the foundation for widespread adoption.
Looking to the future: what could 2025 bring?
Rise of new crypto investment products: The coming year will also see more diversified investment products in the crypto space. The SEC recently approved hybrid Bitcoin and Ethereum funds. With documents to launch ETFs for Ripple and Solana already filed, we could see many more instruments driving institutional adoption in 2025. On the other hand, Vivek Ramaswamy’s Strive filing for ‘Bitcoin Bond ETFs’ indicates strong institutional interest in crypto-related investment products. These products will also help with retail adoption by providing easy access to crypto. Crypto as a payment method: We could also see crypto being used as a payment method in 2025. As many countries try to reduce their dependence on the dollar, crypto is a viable payment method considering its globalized nature. Countries like Russia and El Salvador are already using Bitcoin and other tokens for international transactions and 2025 will give rise to new countries following suit. Southeastern country Thailand is also planning to launch a Bitcoin payment project allowing tourists to transact using crypto. On the other hand, BRICS members are also seeking to create a new digital currency that could have significant implications on the global financial environment. Crypto is now part of investors’ portfolio: the coming year is expected to bring a wave of regulatory clarity from key economies like the US, EU, UAE and others, throwing the bases for increased retail participation in the crypto market. Additionally, Blackrock recommended allocating 2% of investment portfolios to crypto, a sign of strong confidence in its potential. As countries adopt supportive policies and institutions advocate balanced investment strategies, crypto is set to become a common part of retail portfolios, increasing its adoption at the local level.
Tokenization of real-world assets: We may also see an increase in real-world tokenization of assets such as real estate, commodities, and even fine art, making them tradable on the blockchain. This could open the retail audience to many use cases such as settlements, voting rights at board meetings or profit sharing. Over time, through a standardized process for RWAs, investors can invest in real-world assets, diversify their portfolios and earn returns through various instruments. Meanwhile, traditional financial institutions can replace their outdated infrastructure with fast and efficient peer-to-peer systems.
Rise of more Web3 startups: Just as we saw a wave of payment gateways and discount brokers emerge in the post-era, the mature crypto market will give rise to more startups Web3 creating products and services to better interact with the blockchain ecosystem. 2025 could be the year when many products are created with simpler interfaces and gamification of the Web3 space across the world. India has seen over 1,000 Web3 startups created in the last two years and this number is expected to grow rapidly as more and more people enter the market.
AI and crypto synergy: AI-based tokens are expected to dominate in terms of popularity. Given the growing importance of AI in everyday life, tokens based on these AI software are also seeing success. Tech giants like Microsoft, Open AI, and Cognition are also planning to launch tokens based on their AI systems, which shows the strong momentum of AI tokens in the coming days. As AI continues to play a larger role in the crypto ecosystem, tokens of popular AI platforms such as Virtuals Protocol have seen their market capitalization rise as high as $2.9 billion. This, coupled with the Altcoin rally, could support a rally in AI tokens as 2025 approaches.
Take away
The crypto market has more than doubled its market capitalization from $1.65 trillion to $3.3 trillion in 2024. Yet this is only the beginning. With regulations evolving and mass adoption accelerating, the potential for future growth is immense. For ordinary investors, 2025 offers an exciting opportunity to be part of this transformative asset class. While there is still work to be done by regulators and industry players, the crypto ecosystem is steadily evolving, drawing parallels with traditional financial markets. This change provides a solid foundation for broader adoption, increased stability, and long-term growth, making now the perfect time to embrace the crypto market.
(Author Edul Patel is CEO and co-founder of Mudrex, a global crypto investment platform. Views are clean)
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times.)
