By Nermeen Nabil Khear 
21Shares recently shared their State of Crypto Report: 2025 Market Outlook. This year, the company offered 12 major predictions shaping the future of Bitcoin, Ethereum, DeFi, and broader blockchain trends.
21Shares offers an easy way to invest in assets. The report is not investment advice. Instead, it provides a glimpse of what to expect based on their predictions.
What will happen with crypto in 2025?
Explore 12 major predictions on Bitcoin, Ethereum, DeFi, and the latest trends shaping crypto in the latest State of Crypto Report – the 2025 Market Outlook!
Click the link below to download the full report
https://t.co/NFoJV1Nnd8 pic.twitter.com/hyU0dFHikI
— 21Shares US (@21shares_us) December 17, 2024
This article is the first of a two-part series exploring 2025 from 21 Shares’ predictions.
-
Another Nation-State Will Adopt Bitcoin as a Strategic Reserve Asset
21Shares observes that there’s been increased momentum around Bitcoin’s role as a store of value. Over the years, El Salvador has led the push for the mainstream use of Bitcoin. However, 21Shares predicts that other nations could follow suit in 2025. There’s been minor progress towards this. Russia has already legalized Bitcoin mining.
21Shares predicts that in 2025, countries like Argentina may adopt Bitcoin as a strategic reserve asset to counter economic instability and local currency devaluation.
2. Bitcoin’s Scalability Solutions Will Drive Total Value Locked to $10 Billion
Bitcoin’s scaling limitations are being addressed by innovative Layer-2 solutions like Stacks, which enhance transaction speed and introduce smart contracts. The Nakamoto Upgrade is expected to unlock new DeFi opportunities by enabling sBTC, a derivative that boosts the utility of Bitcoin’s $1 trillion idle capital.
These advancements and projects like BitVM and OP_CAT position Bitcoin for broader utility. Bitcoin scalability solutions currently have a TVL of $1.7 billion. However, 21Shares predicts that the numbers could reach $10 billion by 2025. This would be a huge win for the Bitcoin ecosystem.
3. Ethereum’s Revenue Renaissance Will Begin in 2025
Ethereum faced challenges in 2024, facing stiff competition from Layer-1 networks like Solana and Layer-2 solutions like Optimism. However, 21Shares predicts that upgrades like Proto-Danksharding (EIP-4844) will change Ethereum’s economic model. These upgrades will make the network faster and cheaper.
21Shares predicts that Ethereum’s revenue could see a rebound in the new year thanks to an expected funneling of fees from Layer-2 platforms back to Ethereum. Furthermore, partnerships with Web2 giants like PayPal and Visa will play a huge role in growing Ethereum’s mainstream presence. So, based on predictions, Ethereum could see a breakthrough in revenue in 2025.
4. ETPs Will Drive Institutional Adoption, Reaching $250 Billion AUM
The approval of spot Bitcoin ETFs in 2024 marked a turning point for institutional crypto adoption. Within months, ETFs for Bitcoin and Ethereum amassed $20 billion in assets, breaking records. By 2025, institutional interest is set to grow, aided by tools like options for managing ETF risk.
Furthermore, the report predicts that global crypto exchange-traded products (ETPs) could reach $250 billion in assets under management (AUM), with a U.S.-based Bitcoin ETF likely ranking among the world’s top ETFs. This means there could be increased mainstream acceptance of Bitcoin.
5. Solana Will Continue to Eat Ethereum’s Market Share
We saw Solana enjoy massive growth in 2024, becoming one of the most successful ecosystems of the year. Some of the driving factors were high speed and low transaction costs. These features attracted users and capital away from Ethereum.
Solana also struck strategic partnerships with TradFi giants like PayPal, Visa, and Shopify. 21Shares predicts even bigger growth for Solana in 2025. A huge trigger of that growth is the launch of the Firedancer validator software in 2025. This launch is capable of over 1 million transactions per second.
Additionally, the Firedancer validator software could improve Solana’s network resilience. While Ethereum remains dominant, Solana’s integration into traditional finance and institutional adoption could lead to all-time highs in total value locked.
6. User-Friendly Layer-1s Will Fuel Next-Generation Smart-Contract Platforms
Emerging Layer-1 networks like Sui and The Open Network (TON) are set to challenge Ethereum’s dominance. These platforms focus on user-friendly experiences with faster and cheaper transactions, appealing to developers and users alike.
While Ethereum maintains its position for high-value assets, streamlined Layer-1 solutions are fostering innovation in DeFi and Web3 applications. Accessibility is the new language that drives adoption. So, 21Shares expects these Layer-1s to define the next wave of smart contract growth in 2025.
The second part of the report will be discussed in our next article. To view the full 21Shares report, click here.
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 Report: Crypto Market Outlook 2024 – Part 1 appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.