Coinbase Releases 2025 Crypto Outlook: Market Set for Transformative Growth, Marking the Start of a Greater Mission

BlockBeats News, December 22, Coinbase released its 2025 Cryptocurrency Market Outlook, stating, "The 2024 crypto market has seen unprecedented success, and reaching this point was no easy feat. While it's easy for people to view these successes as the culmination of years of work, more and more are realizing they are actually just the beginning of a much larger endeavor." The report focuses on the following five areas:

1. Stablecoins are a killer app in the crypto space. As of December 1, 2024, the market cap of stablecoins grew by 48%, reaching a record high of $1.93 trillion, and this figure could grow to $30 trillion in the next five years. We will soon see their most important use cases being global capital flows and commerce, rather than just transactions.

2. RWA tokenization is poised for significant growth. According to rwa.xyz data, as of December 1, tokenized RWAs grew by over 60%, reaching $13.5 billion (excluding stablecoins). Tokenization made significant progress in 2024. Companies are exploring the use of tokenized assets as collateral for other financial transactions (such as derivatives trading), which can streamline operations and reduce risks. The RWA trend is expanding beyond assets like U.S. Treasuries and money market funds, gaining attention in private lending, commodities, corporate bonds, real estate, and insurance.

3. Crypto ETFs have permanently altered the supply-demand dynamics of crypto. Following the record-breaking success of the U.S. spot Bitcoin ETF, the entire crypto market has changed. Almost every type of institutional investor (including endowments, pension funds, hedge funds, investment advisors, and family offices) now holds a crypto ETF. Of interest is what would happen if the SEC allows for cash create and redeem mechanisms for ETF shares or allows ETFs to include collateral. These changes could enhance potential returns for ETF holders, making ETFs more appealing to investors.

4. The DeFi revival will propel it into a new era. DeFi faced some setbacks in the previous cycle, but a more sustainable and resilient ecosystem has emerged. Loan protocol TVL reached an all-time high, while DEX trading volume share (compared to CEX) hit a peak. Additionally, the shifting U.S. regulatory landscape and adoption of on-chain verification may help pave a clear path for traditional institutional investors to participate in DeFi. All indications suggest that DeFi may expand its influence in the near future.

5. Regulation will ultimately shift from headwinds to tailwinds. For years, the crypto market has suffered from regulatory ambiguity in the U.S., but the tide has turned, and the U.S. Congress is soon to witness its most crypto-friendly Congress ever. Bipartisan support in both the House and Senate backs cryptocurrency, and the likelihood of achieving new legislative milestones is high. It is anticipated that the U.S. will establish a comprehensive regulatory framework, enact robust stablecoin legislation, and end the era of enforcement-led regulation. The breakthroughs and progress in 2025 will likely shape the long-term development trajectory of the crypto industry for decades to come. It will be a pivotal year.