As 2024 comes to a close, European Cryptocurrency investment firm CoinShares has published its market forecast for the new year. In its report, CoinShares identified the key trends that could dominate the Cryptocurrency industry by 2025.
The report thoroughly analyzes how the United States under President Donald Trump may affect the Cryptocurrency market. It also discusses the emergence of profitable Bitcoin companies as a trend to watch in 2025.
Will Trump Reform Cryptocurrency?
In one report Announced December 11, CoinShares said the United States is expected to experience significant changes in Cryptocurrency regulation by 2025 under the Trump administration. Analyst Max Shannon believes that promising regulatory reform and support for Bitcoin miners could create a favorable environment for the digital asset by 2025.
“As the US moves towards these policies, it is likely that altcoins will outperform Bitcoin, although the latter could still be one of the best performing assets in 2025,” the analyst wrote .
It is predicted that mining companies that specialize in Bitcoin mining will likely outperform those that have expanded into other revenue streams, such as artificial intelligence or machine manufacturing.
CoinShares also said the future roadmap for Bitcoin ETFs is generally promising, given their rapid success. Only 20% of AUM in Bitcoin ETFs is held by professional firms and financial managers. This means there is plenty of room for growth with institutional adoption.
Bitcoin Profits – The Next Big Trend?
Another trend to watch out for in 2025 is the rise of companies that profit from Bitcoin. This comes as businesses are adopting BTC as a treasury asset.
Analyst Satish Patel has classified BTC returns into three categories. The first is the growth in Bitcoin holdings relative to company shares. The second is yield farming, generating profit by lending Bitcoin.
The third category involves alternative strategies that leverage derivatives to generate income from Bitcoin reserves.
MicroStrategy, which holds 423,650 BTC, has even introduced its own version of “BTC Profit” to measure the strategy’s effectiveness. Companies like Block, Marathon Digital, and Metaplanet are following in MicroStrategy’s footsteps as they accumulate Bitcoin to use for profit.
“This trend reflects broader recognition of Bitcoin’s potential not only as a store of value but also as a means to generate profits,” the analyst said.
Patel also highlighted how many large companies have started accepting Cryptocurrencies as a payment method by 2024. He believes that companies such as Amazon, Shopify, and Nike, are already involved in Cryptocurrency, or through through payments or investments, may consider including Bitcoin in their treasury in 2025.
What will Ethereum and Solana look like in 2025?
Regarding Ethereum, CoinShares predicts that the use of Layer 2 will continue to increase in the coming year. According to analyst Luke Nolan, the institutionalization of Layer 2 chains, as is the case with Kraken and Sony, will drive adoption by 2025.
“In our view, Layer 2 adoption will continue to increase, increasing demand for blobs and the cost of Ethereum transaction fees,” the analyst said.
He also added that Layer 2 will once again become a source of demand for Ethereum.
As Ethereum prepares for the Pectra upgrade in 2025, the analyst noted that implementing the roadmap will bring new efficiencies. ETH tokens will also face challenges when trying to balance usability and cumulative value.
As for Solana’s future, the report suggests that Frankendancer and Firedancer could transform it.
These are validators that aim to enhance Solana’s network, runtime, and consensus layer components to improve performance and scalability. However, Solana also needs to address its transactions per second (TPS) limitation through updates to optimize efficiency.