From Decentralized Finance (DeFi) to cryptocurrency Exchange-Traded Fund, 2024 has so far proven to be a good year for blockchain and the crypto market. The year was particularly great for bitcoin, which soared to an all-time high (ATH) of $73,835 on March 14.
Interestingly too, BTC halved for the fourth time in April 2024, causing the token rewards to drop to 3.125 bitcoins. This phenomenon impacted most altcoins, making the prices of these digital assets steady across the board.
Although there are still roughly five months to go in the year, it's not too early to project into 2025. In this article, Kate Richardson, an expert crypto analyst shares insights on the market cycle and investment strategies to adopt in the coming year.
10 Important Crypto Trends and Predictions Ahead of 2025
With the bear run of 2022 and 2023 finally behind us, most investors are hoping their portfolio outperforms these stubborn trading years. Fortunately, many crypto related articles suggest that 2025 may be the launchpad for a significant market turnaround.
That said, here's a list of crypto predictions based on historical data and in-depth analysis.
1. Total Crypto Market Cap Prediction to Cross US$ 8 Trillion
Perhaps the most popular prediction is that the cryptocurrency market capitalization will hit eight trillion dollars in 2025.
The market cap as of July 11, 2024 is $2.24 trillion. If the prediction pans out well, that would mean an over 250% increase within 12 months.
2. Bitcoin Set for New All-Time High
With spot bitcoin currently trading at $58,349 on Binance as of the time of this writing, many are optimistic of a bullish bounce back. Based on past performance, it is predicted that not only would bitcoin rise back to its ATH, it will reach new highs in 2025.
The hypothesis behind this prediction is that 2025 will witness larger blockchain currency adoption than previous years. And since bitcoin will lead the charge, this will inevitably trigger a price pump.
3. ETH and Solana Poised for Fresh ATH in Next Crypto Bull Run
Ethereum's last all-time high came as far back as November 2021. It is currently about 36.3% lower than its ATH. However, it could reach the $5,000 mark in 2025.
Solana, which recorded its $259.96 ATH at around the same period, also looks ripe to cross the $300 threshold. These two leading altcoins appear ready to be the cynosure of the next bull run.
4. More Crypto AI Projects Expected to Hit the Market
Integrated crypto AI projects exploded in 2024. Many such tokens crossed $1 billion market cap in the year. Some of them are:
Fetch.AI
Render
Bittensor
The Graph
Theta Network
In 2025, investing in AI projects could bring in some decent profits. This is considering the trajectory of the AI bubble and possible institutional adoption.
5. Investors Likely to Maximize the Potential of Ethereum Restaking
Many crypto exchanges are now open to restaking of coins. A good example is the erc20 token which can be restaked across multiple protocols.
Come 2025, ether restaking would become more mainstream and validators will leverage it to improve the coin's utility, earn extra rewards or even serve as an exchange for protocol fees.
Restaking will potentially have many use cases. For instance, players can spend their tokens earned from restaking on the best crypto betting sites, with access to games, bonuses and special blockchain-domiciled prize pools.
6. Layer 2 Will See Increased Adoption in Smart Contracts
Strategic agreements these days are formulated and completed over the blockchain network. These are known as smart contracts, and they are generally more secure than traditional methods.
However, in the coming year, many users may ditch layer 1 networks for layer 2 smart contracts. Layer 1 is built on cryptos like bitcoin and ethereum, while layer 2 features solutions domiciled on the Polygon and Solana networks.
7. NFTs Likely to Bounce Back to 2022-2023 Levels
Dave Scarborough once said that "NFTs are birth certificates for the offspring of creators"
Non-fungible tokens were the buzz of the last bear run. Unfortunately, many NFTs have lost value and the market has not been able to reach pre-2023 levels.
In 2025, it is very possible that the world witnesses another NFT resurgence. This would offer creators more security and an easier way to authenticate digital asset ownership.
8. Web 3.0 Technologies is Directed to Personalized Projects
One of the most recent trends in the crypto world is Web 3.0. Unlike its predecessor, Web 2.0. which ultimately revolves around social media and user-based content, Web 3.0. is characterized by decentralization, AI and the blockchain.
Till now, web 3.0. has focused on creating publicly usable features like Augmented Reality and Metaverse. But in the future, users will be able to define their own internet. This is projected to start in 2025.
9. Meme Cryptocurrencies Remain Volatile But Mint More Millionaire Investors
One of the highlights of the last four years has been meme tokens. Although some do have long-term potential, most of these coins barely have inherent value and dip as quickly as they pump.
This trend will not be slowing down soon. In 2025, meme coins will make quick millionaires and in the same vein, many others will be rug-pulled. So, it's advisable to tread with caution especially with coins backed by celebrities.
Dogecoin might be an exception, though. Earlier in 2024, Elon Musk reiterated his stance on the token, saying "Doge is the people's crypto, so I will support it." But as we've seen in 2021, the Tesla CEO can easily manipulate the coin with his tweets and interviews.
10. Bull Run Anticipated to Continue into 2026, Further Driving Total Market Cap
Most of the dates for the upcoming bull run are merely speculative. But almost every expert agrees that the run starts next year and will continue into 2026. What this means is that bitcoin and other tokens could see a price increase. Ultimately, there may even be a higher total market cap than the predicted $8 trillion.
Concluding Remarks on Analyst Price Predictions
Cryptocurrencies are not only the future of financial transactions, but as we've seen with smart contracts and web 3.0., they are the drivers of modern technology. Be sure to stay informed of the latest updates in the blockchain world, and thankfully, with the comprehensive commentary, you have crypto projections to look forward to in the coming year.
