CandleFocus

Coinbase’s 5 Predictions for The Crypto Market in 2025

Coinbase has released a report outlining its predictions for the cryptocurrency market in 2025. The report highlights key areas such as stablecoins, tokenization, ETFs, DeFi, and regulatory developments. Coinbase predicts that regulatory changes will benefit the overall crypto market, with the incoming US Congress being referred to as the most pro-crypto ever. Other regions, such as Europe and the G20, are also actively developing regulations to support digital assets. The report also suggests that the SEC may approve staking in ETFs or eliminate the requirement for creating and redeeming ETF shares in cash, potentially broadening the ETF market. Coinbase expects stablecoins to grow significantly, potentially comprising 14% of the $21 trillion US M2 supply by 2025. Tokenized assets are also projected to experience continued growth, with traditional financial giants like BlackRock and Franklin Templeton driving the trend. DeFi is expected to revive with regulatory changes in the US allowing protocols to share revenue with token holders. The report also references comments by Federal Reserve Governor Christopher Waller, who sees DeFi complementing centralized finance with distributed ledger technology.

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