Coinbase, a US-based cryptocurrency exchange, says that there are five major trends in digital assets markets to look out for next year.
Coinbase’s new report “Crypto Market Outlook”, which includes a list of stablecoins as the first item, says that this sector is “just getting going” following its explosive growth since 2024.
Coinbase claims stablecoins will be the “killer application” of crypto and that their uses cases will expand soon beyond trading.
Coinbase claims that the next item on the list will be the tokenization and monetization of real world assets. This is expected to become a major part of the crypto market in 2025.
Firms are using tokenized assets to secure other financial transactions such as derivatives. This could simplify operations and reduce risk. RWA is not limited to US Treasuries or money market funds. It has also gained traction in commodities, corporate bond, real estate and insurance .”
According to Coinbase the third sector to keep an eye on is exchange-traded funds (ETFs).
Coinbase expects that institutional interest will remain confined to a few select crypto ETFs. Coinbase is interested in possible rule changes made by regulators, such as allowing ETFs to include staking and in-kind redemptions.
Decentralized Finance (DeFi) is next. Coinbase predicts that DeFi is going to experience a “resurgence”, which will take it into a whole new age and expand its reach.
Decentralized Finance (DeFi), which was criticized in previous cycles, has now evolved into a sustainable ecosystem. The total value locked by lending protocols has reached new highs, while the share of trades between decentralized exchanges and centralized exchanges is at unprecedented heights .”
Coinbase’s fifth crypto market area to monitor is the regulatory environment. The exchange believes that the climate is about to undergo a significant shift, which will boost the industry. Coinbase believes that in 2025, a crypto-friendly majority will exist in the House of Representatives and Senate.
We expect, in particular, to see the creation of a comprehensive US regulatory framework, as well as the adoption of stablecoin laws and the end of the enforcement-based era.
The US isn’t alone in its desire to improve regulation. Many G20 nations and financial centers are adopting rules that will accommodate digital assets. This should create more favorable environments for growth and innovation. These moves, taken together, can allow more institutions and people to participate with confidence in the crypto-economy .”
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The post Coinbase says there are five key areas of the crypto market to watch in 2025 could be updated as new information becomes available.
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