Coinbase, a leading U.S. cryptocurrency exchange, released a detailed report outlining the key trends likely to shape the crypto industry in 2025.
The report identifies five critical areas for growth and regulation: stablecoins, tokenization, crypto exchange-traded funds (ETFs), decentralized finance (DeFi), and overarching crypto regulations.
Growing Influence of Stablecoins and Tokenization
Stablecoins have notably achieved substantial growth, with their market cap surging over 50% from $130.5 billion in January to $204.5 billion by December, according to data from DefiLlama. These assets have facilitated more than $27 trillion in transactions this year alone, tripling last year’s volume. Coinbase predicts that the primary uses of stablecoins will shift from trading to more global applications in capital flows and commerce.
The tokenization of real-world assets (RWAs) has also grown significantly, increasing by over 60% to $13.5 billion. This rise is supported by the increasing use of RWAs as collateral across various sectors, including private credit and real estate, which are integrating into the crypto ecosystem.
Expansion of Crypto ETFs and Resilient DeFi Ecosystem
Coinbase’s analysts are optimistic about the expansion of crypto ETFs, anticipating increased institutional interest and potential regulatory advancements that could make these products more attractive to investors. Particularly, the anticipation builds around more approvals for tokens such as XRP, Solana, and Litecoin.
The DeFi sector is poised for a transformation with robust lending protocols and decentralized exchanges (DEXs) paving the way. New applications like Decentralized Physical Infrastructure Networks (DePIN) and prediction markets are expected to mature and expand throughout 2025, driven by a more resilient DeFi ecosystem.
Anticipated Regulatory Advances
One of the most significant forecasts involves the regulatory landscape. Coinbase expects that 2025 could see the emergence of a pro-crypto administration, which would foster a favorable environment for crypto innovations and investments.
The analysts predict the establishment of a comprehensive regulatory framework for cryptocurrencies, moving away from the current practice of regulation by enforcement.