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Coinbase Releases Report on Likely Crypto Trends in 2025

The largest U.S. crypto exchange highlights stablecoins, tokenization, ETFs, DeFi, and crypto regulation as the five areas to watch.
By: Joel Lim • December 24, 2024
Coinbase Releases Report on Likely Crypto Trends in 2025

Coinbase, the third-largest centralized exchange (CEX) by trading volume, has released a crypto market outlook highlighting the five top areas to watch in 2025: stablecoins, tokenization, crypto exchange-traded funds (ETFs), decentralized finance (DeFi), and crypto regulation.

Stablecoins are the first crypto product to find product-market fit (PMF) and have exploded this year. According to DefiLlama data, the sector’s market cap increased by over 50%, from $130.5 billion in January to $204.5 billion in December.

Coinbase analysts estimate that stablecoins have facilitated over $27 trillion in transactions year-to-date (YTD), three times the volume processed last year. As adoption increases, they believe stablecoins' primary use cases will pivot from trading to global capital flows and commerce.

They also predict that the tokenization of real-world assets (RWAs) will grow significantly. This year, tokenized real-world assets grew over 60% to $13.5 billion by Dec. 1, according to data from rwa.xyz. Firms have begun using RWAs as collateral, and additional assets besides U.S. Treasuries and money market funds, such as private credit, commodities, corporate bonds, real estate, and insurance, are slowly entering the ecosystem.

“As the regulatory and technological landscapes evolve, we expect to see substantial growth in the crypto ecosystem as wider adoption drives the industry closer to achieving its full potential. The breakthroughs and advancements of 2025 could very well determine the long-term trajectory of the crypto industry for decades to come,” Coinbase analysts wrote.

ETFs, DeFi, and Regulation

Following the success of crypto ETFs, Coinbase analysts predict increased institutional interest in the asset class, with more approvals for tokens like XRP, Solana, Litecoin, and Hedera. They also claim that if the Securities and Exchange Commission (SEC) lifted its cash mandate for ETF share redemption or incorporated staking, it would attract more investors.

They also predict a new era for DeFi thanks to a more resilient ecosystem. In the current cycle, lending protocols and decentralized exchanges (DEXs) are leading the charge, while new use cases like Decentralized Physical Infrastructure Networks (DePIN) and prediction markets are expected to exhibit further growth in 2025.

Finally, the emergence of a pro-crypto administration will provide a tailwind for crypto performance in 2025. Coinbase analysts predict the creation of a comprehensive regulatory crypto framework, ending the era of ‘regulation by enforcement.’

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