A recent report by Steno Research highlights that 2025 could be a pivotal year for cryptocurrencies, with Bitcoin and Ethereum leading the charge due to favorable regulatory changes, improving macroeconomic conditions, and increasing institutional investment.
BTC and ETH: Record-Breaking Price Predictions
The report predicts Bitcoin's price could exceed $150,000, with Ethereum surpassing $8,000 by 2025. These projections are based on several factors: expected regulatory support, with governments and regulators adopting a more favorable stance towards cryptocurrencies; the impact of Bitcoin's halving cycle, historically linked to price increases; and improved macroeconomic conditions characterized by declining interest rates and enhanced liquidity. Ethereum is expected to outperform Bitcoin, reflecting its expanding role in decentralized applications (DApps) and the broader blockchain ecosystem.
Institutional Adoption: A Tipping Point
Steno Research forecasts a surge in institutional capital inflows, particularly through U.S.-based Bitcoin and Ethereum ETFs. Net inflows for BTC ETFs are expected to reach $48 billion, while ETH ETFs might see inflows of $28.5 billion by 2025. The growing popularity of ETFs underscores institutions' increasing confidence in crypto as an asset class, which according to analysts at Steno, will further cement Bitcoin and Ethereum's market dominance.
DApps and Altcoins: The Rise of a New Era
The report also sheds light on the decentralized applications (DApps) and alternative cryptocurrencies (altcoins). Total value locked (TVL) in DApps is forecasted to hit $300 billion in 2025, a significant leap from the $180 billion peak in 2021. Key drivers for this growth include increased on-chain activity, with Ethereum and other altcoins like Solana expected to benefit from this trend. Bitcoin's market dominance is predicted to drop from 57% to 45%, paving the way for altcoins to gain prominence. Steno attributes part of this shift to potential political developments, such as a U.S. presidential victory by Donald Trump, suggesting his policies could spur on-chain activity, favoring Ethereum and Solana over Bitcoin.
The Steno Research report predicts that 2025 will be a landmark year for cryptocurrencies, driven by a confluence of regulatory changes, macroeconomic conditions, and institutional interest. While Bitcoin and Ethereum will be at the forefront, attention will also be on the growth of DApps and altcoins.
