In 2024, the cryptocurrency sector, spearheaded by the flagship digital currency Bitcoin (BTC), experienced exponential growth. This surge propelled the market’s valuation to nearly $4 trillion before encountering a market correction. Bitcoin, reaching a remarkable milestone, soared to the $100,000 mark earlier in the year, before slightly retracting to approximately $92,700 by the year’s close during the mid-London trading session.
The Role of Institutional Investors and Bitcoin ETFs
The mainstream adoption of digital assets and Web3 technologies has been significantly driven by influential institutional investors like MicroStrategy Inc. (NASDAQ: MSTR) and Metaplanet Inc. (Tokyo: 3350). These entities have played a crucial role in fostering the ongoing bull market. Notably, the approval of spot Bitcoin ETFs in the United States acted as a catalyst, leading to the acquisition of over $106 billion worth of BTC within a year.
Franklin Templeton’s Prediction for 2025
According to a comprehensive report by Franklin Templeton Digital Assets, the year 2025 is anticipated to usher in a transformative shift within the cryptocurrency industry, transitioning from a focus on speculation to tangible utility. The investment firm envisions cryptocurrencies becoming a fundamental component of global financial and operational systems. Consequently, Franklin Templeton advises stakeholders to monitor closely the evolving regulatory environment, strategic institutional maneuvers, and advancements in the AI-crypto convergence anticipated in 2025.
The Impact of Political Changes on Crypto Adoption
With the re-election of Donald Trump as President of the United States, Franklin Templeton predicts that the U.S. will take a leading role in cryptocurrency adoption. The appointment of Paul Atkins as the next chair of the U.S. Securities and Exchange Commission (SEC) has rekindled optimism for enhanced clarity in crypto products, including tokenized security offerings.
Sectoral Leaders in the Crypto Space
Among the key sectors expected to spearhead growth in the cryptocurrency industry, the Decentralized Physical Infrastructure Network (DePIN) stands out. Currently boasting a market capitalization nearing $29 billion and a daily trading volume averaging $2.18 billion, DePIN is poised for significant advancements.
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FAQs
How big will the crypto market be in 2025?
The crypto market is projected to grow substantially, becoming an integral part of global financial systems, with a focus on utility-driven expansion.
Which crypto will boom in the next 5 years?
Bitcoin, DePIN, and other blockchain-based assets are anticipated to experience significant growth, propelled by institutional adoption.
How much will 1 Bitcoin cost in 2025?
According to Coinpedia’s BTC price prediction, the price of 1 Bitcoin could peak at $169,046.
