Unpacking $250B Stablecoin Surge: Mergers and Major Market Shocks!
- Crypto-friendly leaders are transforming the crypto landscape into a bullish frontier.
- Expect a wave of consolidation as established players broaden their global influence.
- Seven industry experts reveal their bold predictions, including one alarming forecast of a market crash.
What’s the future of crypto?
That’s the million-dollar question after a groundbreaking 2024 featuring the launch of crypto exchange-traded funds, Wall Street’s ramp-up, and the return of Donald Trump to power.
We consulted the experts to uncover what they foresee for crypto in 2025.
Michael Harvey, Head of Franchise Trading, Galaxy Digital
One of the hottest developments on the crypto front is the resurgence of decentralized finance (DeFi).
Since making waves in the summer of 2020, DeFi has emerged as a true disruptor, yet its potential has been undervalued in recent years.
With the prospects of progressive regulations on the horizon, DeFi is being revitalized like never before.
Key Ethereum protocols like Uniswap, Aave, and Compound, along with new layer-2 chains such as Arbitrum and Optimism, are consistently evolving to enhance their offerings.
These innovations, coupled with a more welcoming regulatory landscape and improved user experiences, are priming the crypto industry for explosive growth.
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The next wave of DeFi on Ethereum is already upon us, with groundbreaking protocols like Spark and Ethena transforming the trading experience.
Solana is stepping up, outperforming Ethereum in DEX volumes, proving its mettle in the DeFi arena.
And let’s not forget Bitcoin—it’s joining the DeFi conversation, with initiatives aimed at enhancing its programmability, leveraging its unmatched security to support Ordinals and the BRC-20 token protocol.
Amar Kuchinad, Global CEO, Copper.co
In 2025, traditional financial players will increasingly dive into the world of digital assets.
One crucial trend to watch will be the fractionalization of asset baskets, especially those tied to government bonds. This is already evident with BlackRock’s BUIDL and Franklin’s BENJI tokenized money market funds.
With enhanced market liquidity and reduced capital costs, many market players will be compelled to embrace these innovations.
Expect a surge of nimble traditional financial infrastructure providers to adopt blockchain solutions, some even exploring simplified collateral frameworks and risk management systems. This could be the stepping stone to achieving the long-anticipated benefits of blockchain: faster settlements, diminished risks, and lower operational expenses.
Public blockchains are here to stay, but their role may shift. Instead of serving as a constant settlement layer, they might transition to a netting layer, consolidating transactions periodically while offloading real-time tasks to more efficient private systems.
Ben Caselin, CMO, VALR
In 2025, keep your eyes peeled for three key developments.
First, as President Trump resumes office, the push to adopt Bitcoin as a strategic reserve asset will spur other nations to follow suit.
But don’t expect a smooth ride; growth will undoubtedly face pushback.
Next, while evolving fiscal policies may favor markets, brace for a potential crash. The relentless surge in speculative tokens parallels reckless money printing and poses significant long-term risks.
Finally, anticipate regional consolidation, with licensed national and continental exchanges gaining prominence, particularly in emerging markets, while globally unregulated exchanges fade.
That said, Bitcoin is poised for a robust future, with growth and volatility on the horizon.
Morgan Krupetsky, Head of Institutions and Capital Markets, Ava Labs
2025 will witness a significant surge in tokenized assets spreading across various sectors.
Beyond stablecoins and money market funds, the tokenization trend will extend to equities, fixed-income securities, and other traditional assets, driven by an appetite for more efficient and transparent business transactions.
This shift will gain momentum, especially if US financial regulators choose to repeal or amend SAB 121, opening doors for banks to adopt public blockchain technology.
Simultaneously, established companies in the web2 space will increasingly leverage blockchain solutions, incorporating tokenized assets for everything from payments to supply chain management, ultimately enhancing transaction speeds and efficiency.
As these developments unfold, we’ll begin to sketch a vision of a more integrated financial ecosystem, seamlessly merging blockchain efficiency with the expansive reach of traditional enterprises.
This evolution will pave the way for a broader acceptance of blockchain applications, creating a new paradigm in finance that transcends the traditional and the emerging digital economy.
Norris Wang, Co-Founder, Balance.fun
I envision the total stablecoin market surpassing $250 billion by the end of 2025, fueled by heightened adoption and pragmatic global regulations.
Regulatory frameworks are set to recognize stablecoins as hybrid vehicles—part cash, part market instruments.
This pivotal shift will enable more sophisticated policies, such as allowing yield distributions where reserves align with the inherent risks of digital currencies.
While domestic stablecoins will remain under stringent regulation, a more balanced approach towards offshore instruments will take shape, emphasizing consumer protection rather than driving activity underground.
Expect a revival in DeFi innovation as confidence returns, deeper integration of DeFi with fintech platforms, and a magnetic pull for talent back to the US. New York, already the epicenter of crypto, is set to solidify its position even further.
Chris Yin, CEO, Plume
The crypto landscape in 2025 is set to be vibrant, with AI, memecoins, real-world assets, dino coins, and community engagement taking center stage.
We are witnessing a renewed focus on the convergence of crypto and AI, with ongoing demand for AI agents driving innovative use cases, exemplified by the success of $GOAT.
However, the real game-changer will be in the realm of real-world assets. The explosive growth of stablecoins in 2024 underscores the practical applications of this asset class, particularly appealing to institutional investors.
Mohammad Raafi, CEO and Co-Founder, Fasset
In 2025, high-growth markets like Indonesia and Pakistan will spearhead crypto adoption, not merely in trading but in addressing structural inefficiencies.
Take real estate tokenization, for example—it’s already showing promise, enabling residents from emerging markets to co-invest in properties in prime locations like London or New York for as little as $100, breaking down barriers to global investment.
In 2024 alone, more than 60% of new crypto wallets were opened in emerging markets, reflecting a surging demand for decentralized financial solutions where traditional banking access is limited—a trend that’s only set to increase in 2025.
The insights above have been edited for clarity.
Eric Johansson and Liam Kelly cover crypto funding trends for DL News. Got a tip? Email them at [email protected] and [email protected].
