Crypto in 2025: From Ease of Regulations to dApps for Real-world Problems Industry players expect 2025 to be another remarkable year for the ecosystem.
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The year 2024 has been phenomenal for the Web3 and cryptocurrency ecosystem, from Bitcoin Exchange-Traded Fund (ETF) approval, Donald Trump's pro-crypto pivot to BTC crossing the USD 100,000 mark for the first time and crypto market cap crossing USD 3.5 trillion. As Bitcoin turns 16, one can take time to truly appreciate the evolution of the digital asset from a risky experiment or a fluke to a mainstream asset in which people are considering investing. Industry players expect 2025 to be another remarkable year for the ecosystem.
Here are five trends to watch out for in 2025:
1. Institutional Adoption:
It is safe to say that the introduction of US Bitcoin Spot ETFs has been a possible trigger for increased institutional use. According to Sygnum Bank's Future Finance report, 57 per cent of respondents plan to increase the crypto allocation, while 31 per cent of them plan to do so in the upcoming quarter. "Institutional adoption, spurred by developments such as Bitcoin ETFs, will continue to drive the market forward, bridging traditional finance and digital assets," said Ryan Lee, Chief Research Analyst, Bitget.
Post Trump's win, spot Bitcoin ETF recorded a single-day inflow of nearly USD 1.4 billion on November 7. "Trump's victory, coupled with pro-crypto leadership at the SEC and CFTC, is expected to fuel increased institutional activity through ETFs," said Edul Patel, Co-founder and CEO, Mudrex. Steno Research predicted net inflows of USD 48 billion into BTC ETFs and USD 28.5 billion into Ethereum ETFs in 2025.
2. Ease of restrictions and regulatory clarity:
Experts anticipate that Trump's new stance will encourage other markets to look into crypto, expecting regulatory clarity. "With regulatory clarity expected in 2025, we foresee transformative developments that will boost institutional confidence and also pave the way for broader acceptance of cryptocurrencies," said Shivam Thakral, CEO, BuyUcoin.
H.C. Wainwright & Co. reports that regulatory clarity and institutional adoption could drive BTC to more than double its current price in 2025. Meanwhile, the EU's MiCA framework next year is expected to serve as a benchmark for countries developing their regulatory structures.
"Countries like China, Canada, EU nations, and the Middle East are easing restrictions, creating a healthy environment for wider crypto adoption, reducing the uncertainty in the market,' says Patel.
3. AI Agents to work:
Tech experts have given their verdict: AI Agents- a system capable of autonomously performing tasks on behalf of a user- will be emerging as a top technology trend for 2025. It is expected to give a push to all industries, including crypto. "We could also see newer sectors like AI Agents take the lead this year with an increase in their real-world relevance," adds Patel.
According to Grand View Research, the global AI agents market size was valued at USD 3.86 billion in 2023 and is expected to grow at a CAGR of 45.1 per cent from 2024-30. "On the coordination layer, I think there can be projects that can do well in crypto plus AI space," shared Sandeep Nailwal, co-founder, Polygon.
4. Betting big on dApps:
Decentralized applications (DApps) are any computer applications whose operation is maintained by a distributed network of computer nodes, as opposed to a single server. "In 2025, we anticipate a surge in decentralized applications (dApps) built on scalable and interoperable blockchain networks," says Anish Jain, Founder & CEO, W Chain. According to Verified Market Reports, the market size was valued at USD 31.2 Billion in 2023 and is expected to reach USD 139.6 Billion by the end of 2031.
"The focus will shift towards real-world utility, with dApps solving real-world problems in sectors like finance, healthcare, and supply chain management," he adds.
5. Union Budget 2025:
As we near India's Budget for 2025, the domestic ecosystem is hopeful, after a disappointment in the interim budget in 2024. "There is hope that Budget 2025 will address the aspirations of young entrepreneurs in the Web3 sector and respond to the long-standing demand for comprehensive Web3 regulations in India," Thakral notes.
Experts predict the BTC price tag to touch anywhere from USD 150,000 to USD 250,000. Meanwhile, H. C. Wainwright predicts the price to hit USD 225,000 in 2025. "The crypto landscape in 2025 will reflect a maturing market, where institutional involvement and technological breakthroughs shape the next phase of adoption and growth," says Lee.
