According to a recent report by Steno Research, Ethereum (ETH) is poised to outperform Bitcoin (BTC) in 2025. This outlook is attributed to historical trends and the anticipated impact of favorable cryptocurrency regulations following Republican presidential candidate Donald Trump’s victory in the November election. Will 2025 Be The Year Of Ethereum? While the overall cryptocurrency market surged to unprecedented heights this year – reaching an all-time high (ATH) total market cap of $3.9 trillion – Ethereum, the second-largest cryptocurrency, has lagged behind in terms of price performance. Related Reading: Ethereum Rejected At $4,000 Resistance Again: What Lies Ahead For ETH? However, Steno Research’s report suggests Ethereum could finally achieve a new ATH in 2025, driven by increased institutional investment and supportive regulatory developments. The report predicts that ETH could climb to at least $8,000 in the upcoming year. Bitcoin is also expected to hit a new ATH of $150,000 in 2025, but Ethereum may more than double from its current price of $3,400. Additionally, the ETH/BTC trading pair is forecasted to rise from 0.035 to 0.06 within the next 12 months. The weekly chart below illustrates ETH’s declining performance against BTC since September 2022. However, the pair is now hovering near a crucial support level at 0.035, with expectations of a rebound to the 0.06 level, which was last seen in February 2024. Steno Research’s optimistic forecast for Ethereum underscores a potential bullish momentum for altcoins in 2025. Mads Eberhardt, an analyst at Steno Research, stated: This expectation is partly based on the argument that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin. The report adds that Bitcoin dominance (BTC.D) – a metric used to gauge the proportion of the total crypto market cap commanded by BTC – is expected to tumble to as low as 45% from its current level. The following weekly chart demonstrates BTC.D’s sustained uptrend since September 2022, rising from a low of around 39% to a peak of 61%. However, recent price action suggests a lower high has been formed, signaling a potential sharp decline to around 45%. DeFi Activity To Rebound In 2025 The report further predicts a resurgence in decentralized finance (DeFi) activity within Ethereum’s ecosystem in 2025. Specifically, the total value locked (TVL) in decentralized applications is expected to hit a new high of $300 billion next year. Related Reading: DeFi Exploits Plunge 40% In 2024, But Centralized Exchange Losses Soar – Report Renewed interest in DeFi could further drive higher altcoin prices in 2025. Notably, ETH jumped 10% following Trump’s November election victory, as improved sentiment surrounding DeFi regulations boosted market confidence. In addition, strong inflows attracted by spot Ethereum exchange-traded funds (ETF) further strengthen the bullish case for ETH heading into 2025. At press time, ETH trades at $3,417, up 3% in the past 24 hours. Featured image from Unsplash, charts from Tradingview.com
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Revenue-Sharing Stablecoins Poised for 10x Growth by 2025, Predicts Delphi Digital
Stablecoins have experienced tremendous growth last year. Their collective market cap recently hit a milestone of $200 billion. Beyond the popular ones such as Tether’s USDT and Circle’s USDC, industry players now predict a new wave incoming for “revenue-sharing” stablecoins. 2025 Will Be the Year of Revenue-Sharing Stablecoins According to Delphi Digital’s Research Associate, Robbie Petersen’s latest prediction , “revenue-sharing” stablecoins such as USDG (Paxos), M (M0 Foundation), and AUSD (withAUSD) could potentially experience a tenfold increase in market share by 2025. He explained that traditional stablecoins concentrate economic benefits with issuers. The model of revenue-sharing stablecoins, however, eventually “will prove directly correct” because of two key reasons: First, they prioritize distribution by aligning incentives between issuers and applications. Instead of courting end-users directly, they target distribution channels such as FinTech apps. Such a system in place fosters mutual benefits and adoption. Second, the model’s ability to harness collective network effects sets it apart. By incentivizing multiple apps to integrate the same stablecoin, a unified ecosystem of distributors amplifies adoption and usage, driving exponential growth. Petersen also said that throughout 2025, Fintechs and market makers are expected to play crucial roles in steering users toward these stablecoins, which also serve their financial interests. The Delphi Digital associate also predicted that stablecoins will evolve beyond their current role in decentralized finance (DeFi) to become a widely used medium of exchange. This evolution will be driven by fintechs adopting stablecoins to improve profitability and secure greater control over payment systems. As competition intensifies, stablecoin integration will shift from a strategic advantage to a necessity, which, in turn, will push monthly active stablecoin addresses past 50 million. Visa to Prioritize Stablecoins Over Profits? Petersen also said that Visa is expected to launch a stablecoin initiative, even at the cost of reducing its card network margins, as a strategic hedge against the growing risk of disruption from emerging players in the payments industry. He noted that rather than resisting change, Visa is likely to adopt stablecoins early and would prioritize long-term survival and relevance over short-term profits. This highlights increasing pressure on traditional financial institutions to innovate in response to evolving technology and customer demands. This same logic is expected to influence other fintechs and banks to embrace stablecoin initiatives as well. Interestingly, in July, Visa’s CEO, Alfred Kelly, spoke about the growing significance of stablecoins in the payments industry and said that these tokens have a “meaningful role” in the future. The exec also added that the company views stablecoins as a solution to the volatility of traditional cryptocurrencies like Bitcoin, combining price stability with the peer-to-peer nature of blockchain transactions. The post Revenue-Sharing Stablecoins Poised for 10x Growth by 2025, Predicts Delphi Digital appeared first on CryptoPotato . NewsBTC
Impact of a Strong Dollar on Bitcoin’s Market Dynamics and Potential Recovery Scenarios
The recent surge of the U.S. dollar poses challenges for Bitcoin as it battles to maintain upward momentum amidst shifting market dynamics. As inflationary pressures and interest rate policies continue NewsBTC