Key Crypto Predictions for 2025 – Part 2

This is the second part of the article on crypto predictions; here’s the first part.

From the growth in Bitcoin L2 solutions to the rise of stablecoins and NFT recovery, the crypto space is on the verge of something exciting. So, let’s walk through four more crypto predictions for 2025 that could redefine this sector.

6) Bitcoin Layer-2s Reach 100,000 BTC in Total Value Locked

Bitcoin has long been the leading digital currency. Nevertheless, by 2025, Bitcoin’s scope will grow by adding a new substrate of Layer-2 (L2) solutions. These are layers built on the Bitcoin blockchain, to enhance scalability and enable smart contracts and DeFi applications on the network.

2024 Layer 2 summary:

1/ The L2 ecosystem surged in 2024, with Total Value Locked jumping from $22.4B to $42.8B, driven largely by growth in the first quarter. pic.twitter.com/Rf1a9TU5hi

— The Block Pro (@TheBlockPro__) December 30, 2024

In 2024, Layer-2 protocols in Bitcoin recorded a six-fold increment in the Total Value Locked (TVL) to 30,000 BTC. Some analysts predict that Layer 2s for Bitcoin will reach $100K in locked-in value by 2025. This will be possible as more Bitcoin owners use it to stake and engage in defi. As of now, there are more than seventy-five active L2 projects.

7) The Year of the Crypto IPO

2025 will be a significant turning point in the crypto IPO market. Some of the giants in this particular field are planning for an IPO. Among the top candidates are:

Prediction #4: 2025 will be the “Year of the Crypto IPO,” with at least five crypto unicorns going public in the U.S.

The past few years have been quiet on the crypto IPO front. But we expect a stampede of crypto IPOs in 2025.

Here are five likely candidates: pic.twitter.com/1H5BSn0MXL

— Ryan Rasmussen (@RasterlyRock) December 11, 2024

• Circle: The company behind USDC stablecoin, Circle, is expanding into other financial services-related sectors. They recently expressed interest in a public offering.
• Figure: This provider of blockchain-centric financial services has signaled its intentions of going IPO. This is because of Wall Street’s recent love for tokenization.
• Kraken: They have been considering an IPO for many years and may proceed in 2025.
• Anchorage: It is also expected to go public.
• Chainalysis: It is well-positioned for higher regulatory requirements in the crypto industry.

As these companies prepare to go public, 2025 may mark the beginning of a wave of crypto IPOs that will attract investors from around the globe.

8) NFT Market Recovery: $30 Billion in Trading Volume

As with any other market, the NFT market has faced some challenges over the past couple of years, but the public still expects that it will rise in 2025. In detail, the volumes of trading by NFTs lessened in 2024. However, some of them, like Pudgy Penguins and Bored Ape Yacht Club (BAYC), are among those projects that have only advanced with the support of engaged audiences.

Prediction #9: NFT trading volumes are projected to rebound to $30 billion in 2025. Despite the downturn over the past years, standout projects like Pudgy Penguins, transitioning into a consumer brand through collectible toys, and Miladys, gaining cultural prominence in sardonic…

— VanEck (@vaneck_us) December 13, 2024

As crypto expands, NFTs will be seen less as speculative investments and more as assets with long-term cultural value. Ethereum still prevails as the market leader in the NFT space, with analysts projecting the market share to rise from 71% to 85% by 2025. 

9) Stablecoin Assets Soar to $400 Billion

Another huge forecast for crypto investments in 2025 is stablecoins. From Bitwise prediction, we expect the market cap of stablecoins to double to $400 billion, driven by four key factors:

Stablecoin Market Hits New Milestone!

Total supply exceeds $200B, reaching an all-time high

Current supply by token:

#USDT: $142.9B
#USDC: $42.3B
#USDe: $6.08B
#DAI: $4.5B
#FDUSD: $1.9B
#USDS: $1.2B

Source: @artemis #Stablecoin #Crypto #DeFi pic.twitter.com/HCxD1ZyqX1

— CoinRank (@CoinRank_io) December 28, 2024

Legislation

Based on the prediction, the United States will adopt more detailed bills for stablecoins, improving the industry’s legal framework and attracting more firms and traditional banks.

Fintech Integration

Huge online payment providers like PayPal and Stripe are integrating stablecoins to use them and, therefore, to increase the volume of transactions, including stablecoins.

Bull Market Growth

Stablecoins already form a significant fraction of the total crypto market; as the crypto market expands, so will the use of stablecoins in the future.

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.

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