We recently shared the first of a two-part series, looking at 21Shares’ 2025 market outlook.
21Shares published 12 major predictions for the crypto market. While these are not financial advice, they provide a guide on what to expect. And how to stay positioned for these possible trends.
Revenue-Sharing Will Completely Change the Investment Case for DeFi
DeFi protocols like Aave, Maker, Lido, and Uniswap have weathered the ups and downs of the crypto market, proving their strong product-market fit. Despite their resilience, these platforms have struggled to make their tokens attractive investments.
Historically, governance rights alone haven’t been enough to draw in long-term investors. However, 2025 could mark a turning point.
Uniswap’s recent move to launch Unichain points to this shift. Aside from the technical side of business, it transformed the UNI token into a utility token. This makes UNI a more appealing investment. 21Shares predicts a good season for DeFi projects in 2025. President Trump’s potential support is a good reason to think this. So, we could see more interest in these tokens.
Stablecoins to Deepen Integration Across Traditional Sectors
Stablecoins were a huge part of the crypto market in 2024. This asset class gained a significant global impact. By 2024, with its market cap soaring past $170 billion. Stablecoins are a good example of the use cases of cryptocurrencies. Countries like the Philippines leverage stablecoins to fight inflation and remittance. Furthermore, MiCA, an EU-based framework for digital assets, will support euro-backed stablecoins.
There are major reasons to believe 2025 could be the stablecoin year. Stripe has already acquired Bridge, a stablecoin infrastructure. We could see more integration of stablecoins in traditional finance in the coming year.
Tokenization to Advance in Private Credit
We saw a huge surge in the tokenization trend in 2024. Interestingly, 21Shares believes this trend could move toward private credit as interest rates fall. Tokenizing private credit addresses three main barriers: illiquidity, high management fees, and lack of transparency. Thanks to a reliance on smart contracts, tokenization lowers costs, enhances liquidity, and provides real-time transparency.
21Shares believes that integrating established rating agencies like Moody’s could further strengthen this market. Other positive measures include offering standardized risk assessments for mid- to high-risk corporate debt. This would build trust and meet potential regulatory requirements.
As per the report, platforms like Maple Finance and Centrifuge are already leading the charge. There’s also been a noticeable growth in loan volumes. This shows the appeal of this sector.
21Shares expects traditional banks to pull back on lending. As a result, tokenized private credit will rise to meet the financing needs of underserved businesses.
Many Jurisdictions to Reconsider Retail Crypto Bans
There were lots of debates about crypto regulations throughout 2024. However, there’s been a breath of fresh air in recent months, and the 21Shares report predicts a possible shift in policy in the coming year.
In the U.S., legislative advancements like the FIT21 Act and the potential repeal of restrictive measures like SAB121 signal a move toward tailored crypto regulations. The launch of Bitcoin and Ethereum ETFs, along with growing interest in stablecoins, are good reasons to believe better policies could surface in 2025.
There have also been moves for better policies in Europe, headed by the MiCA framework. The UK is also improving its oversight of the crypto market, offering increased customer protection. A good example is the U.K.’s Property Bill and potential retail access to crypto ETNs.
Asia isn’t left behind either. Countries like South Korea and the UAE are also leading the charge with progressive frameworks and surging adoption rates. The report states that these regulatory advancements could open doors for broader retail participation, institutional adoption, and innovation across the crypto sector.
Decentralized Broadband Solutions to Maintain Momentum
The report predicts that decentralized internet providers will enjoy the spotlight in 2025. Centralized internet providers dominate today’s infrastructure. This means people pay more and enjoy limited coverage.
However decentralized platforms like Helium are posing a huge challenge to rival centralized powers. Helium relies on Solana to provide a new era of wireless networks that bypasses the need for expensive cell towers. Helium recorded massive adoption in 2025, and 21Shares expects the trend to continue in 2025.
Blockchain to Safeguard Digital Truth in the Age of AI
The AI space has recorded significant growth in recent months. However, there have been considerable concerns, including deepfakes and misinformation. 21Shares believes blockchain will play an increased role in ensuring transparency and safeguarding digital truth in 2025.
The report, in conclusion, anticipates broadening mainstream adoption of crypto. However, the industry’s growth depends on continuous innovation, better policies, and other factors.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post 21Shares Publishes 2025 Outlook. What Should We Expect? Part 2 appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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