Author: Leeor Shimron Source: forbes Translation: Shan Oppa, Golden Finance

2024 marks the year of Bitcoin A historic turning point for coins and the cryptocurrency ecosystem. This year, the first Bitcoin and Ethereum ETFs were successfully launched, marking the real start of institutions entering the crypto field. Bitcoin topped $100,000 for the first time, while stablecoins continue to cement the dollar’s ​​global dominance. In addition, the successful US presidential candidate will support Bitcoin as one of his core campaign promises during the campaign.

These milestones together set the stage for 2024 as an important year for the crypto industry to emerge on the global stage. As the industry heads into 2025, here are my predictions for the seven key events that are likely to happen in the next year.

1. The major economies in the G7 or BRICS will establish and announce strategic Bitcoin reserves

Trump proposes to establish strategic Bitcoin reserves for the United States Coin Reserve (SBR) has triggered widespread discussion and speculation.

While adding Bitcoin to the U.S. Treasury’s balance sheet requires strong will and congressional approval, the proposal itself already has far-reaching consequences.

The signal sent by the United States may prompt other major players to consider taking similar actions. Based on game theory, these may act early to seize a strategic advantage in reserve diversification. The limited supply of Bitcoin and its increasingly prominent digital value reserve attributes may accelerate the response of various countries.

Currently, the world is entering a race to see which major player can be the first to include Bitcoin in its reserves and hold it alongside traditional assets such as gold, foreign exchange and sovereign bonds. have.

This move will not only further consolidate Bitcoin's status as a global reserve asset, but may also reshape the international financial landscape and have a profound impact on the global economy and geography. If a major economy takes the lead in establishing a strategic Bitcoin reserve, it could signal a new era of sovereign wealth management.

2. Stablecoins continue to grow, with circulation doubling and exceeding US$400 billion

Stablecoins have become one of the most successful mainstream applications of cryptocurrency, setting up A bridge between traditional finance and the crypto ecosystem. Millions of users around the world use stablecoins for remittances, daily transactions, andHedging the risk of domestic currency fluctuations through the relative stability of the US dollar.

In 2024, the circulating supply of stablecoins will reach a record high, exceeding $200 billion, with the market mainly led by Tether and Circle. Stablecoins rely on blockchain networks such as Ethereum, Solana and Tron to achieve seamless and borderless transactions.

Looking forward, stablecoin growth is expected to accelerate in 2025, potentially doubling to over $400 billion. This growth will be driven by the potential passage of stablecoin-specific legislation, which could provide much-needed regulatory clarity and spur innovation in the industry. U.S. regulators increasingly recognize the strategic importance of stablecoins in reinforcing the dollar’s ​​global dominance and cementing its status as the world’s reserve currency.

Stablecoins hit all-time highs this year, with total supply exceeding $200 billion.

3. Bitcoin DeFi will become the main force of growth driven by the L2 ecosystem

Bitcoin is surpassing its "value store" role. With the growth of Stacks, BOB, Babylon and With the development of L2 networks such as CoreDAO, the Bitcoin DeFi ecosystem is gradually rising. These L2 networks enhance Bitcoin’s scalability and programmability, allowing DeFi applications to thrive on the most secure, decentralized blockchain.

2024 is a transformative year for Stacks, with the launch of the Nakamoto upgrade and sBTC. The Nakamoto upgrade enables Stacks to fully inherit Bitcoin’s finality and introduce faster block speeds, greatly improving the user experience. Meanwhile, sBTC (trustless Bitcoin-pegged asset) was launched in December, allowing users to conduct DeFi activities such as lending, exchanging, and staking without leaving the Bitcoin ecosystem.

Prior to this, if Bitcoin holders wanted to participate in DeFi, they needed to wrap Bitcoin to other networks, such as Ethereum.

This method relies on centralized custodians, such as WBTC (BitGo), BTCB (Binance) and cbBTC (Coinbase), increases centralization and censorship risks.

Bitcoin L2 reduces these risks and provides a more decentralized way so that Bitcoin can play a greater role in its native ecosystem.

In 2025, Bitcoin DeFi is expected to achieve explosive growth. I predict that Bitcoin L2’s total volume locked (TVL) will exceed the $24 billion currently represented by wrapped Bitcoin derivatives (approximately 1.2% of the total Bitcoin supply).

With the market value of Bitcoin reaching 2 trillion US dollars, the L2 network will allow users to unlock the potential value of Bitcoin more safely and efficiently, further consolidating Bitcoin’s popularity in the world. central role in decentralized finance.

More than $24 billion worth of Bitcoin-derived tokens packaged on other blockchains , accounting for approximately 1.2% of the total value of Bitcoin’s total supply.

4. Bitcoin ETFs will continue to proliferate, and new cryptocurrency-focused ETFs will emerge

The launch of the spot Bitcoin ETF marks a historic milestone , becoming the most successful ETF debut in history. These ETFs attracted more than $108 billion in assets under management (AUM) in their first year, demonstrating unparalleled demand from retail and institutional investors. Major players such as BlackRock, Fidelity and Ark Invest have played a key role in bringing regulated Bitcoin to traditional financial markets, setting the stage for a wave of innovation in cryptocurrency ETFs.

The Bitcoin ETF is the most successful ETF ever launched.

Following the success of the Bitcoin ETF, the Ethereum ETF has debuted, offering investors exposure to the second-largest cryptocurrency by market capitalization. Going forward, I expect staking to be integrated into an Ethereum ETF for the first time in 2025. This feature will enable investors to earn staking rewards, further enhancing the appeal and utility of these funds.

I expect ETFs for other leading crypto protocolsComing soon, like Solana, the protocol is known for its high-performance blockchain, thriving DeFi ecosystem, and rapid growth in gaming, NFTs, and memecoins.

Additionally, we may see the launch of weighted crypto index ETFs designed to provide diversification across the broader crypto market. These indices may include a mix of top-performing assets such as Bitcoin, Ethereum, Solana, and emerging protocols, providing investors with a balanced portfolio that captures the growth potential of the entire ecosystem. Such innovations will make cryptocurrency investing easier and more efficient and attract a wide range of investors, further driving capital into the space.

5. A “Big Seven” company will add Bitcoin to its balance sheet (surpassing Tesla)

Introduced by the Financial Accounting Standards Board (FASB) Established fair value accounting rules for cryptocurrencies, effective for fiscal years beginning after December 15, 2024. These new standards require companies to report their holdings of cryptocurrencies, such as Bitcoin, at fair market value while covering gains and losses from real-time market fluctuations.

Previously, digital assets were classified as intangible assets, forcing companies to write down impaired assets while prohibiting the recognition of unrealized gains. This conservative approach often underestimates the true value of cryptocurrencies held on corporate balance sheets. The updated rules address these limitations, making financial reporting more accurate and making cryptocurrencies a more attractive asset for corporate finances.

The Big Seven - Apple, Microsoft, Google, Amazon, Nvidia, Tesla and Meta - collectively hold more than $600 billion in cash reserves. This gives them tremendous flexibility to allocate some of their capital to Bitcoin. With enhanced accounting frameworks and increased regulatory transparency, there is a good chance that one of these tech giants, in addition to Tesla, will add Bitcoin to its balance sheet.

This move will reflect prudent financial management:

Hedging against inflation: Preventing fiat currencies depreciation.

Diversification reserves: adding uncorrelated, limited digital assets to their portfolios.

Taking advantage of appreciation potential: Take advantage of Bitcoin’s long history of growth.

Strengthen technology leadership: Align with an innovation-driven ethos by embracing digital transformation.

As new accounting rules come into effect and As corporate finance adapts, Bitcoin may become a key reserve asset for the world's largest technology companies, further legitimizing its role in the global financial system.

6. The total market value of cryptocurrencies will exceed $8 trillion In 2024, the total cryptocurrency market capitalization will soar to An all-time high of $3.8 trillion, covering a wide range of use cases including Bitcoin as a store of value, stablecoins, DeFi, NFTs, memecoins, GameFi, SocialFi, and more. This explosive growth reflects the industry’s growing influence and across different industries. Increasing adoption of blockchain-based solutions

by 2025. In 2020, developer talent is expected to accelerate the influx into the crypto ecosystem, driving the creation of new applications, achieving product-market fit and attracting millions of additional users. This wave of innovation is likely to increase in artificial intelligence (AI), decentralized finance. Areas such as (DeFi), Decentralized Physical Infrastructure Networks (DePIN), and other emerging areas still in their infancy are giving rise to groundbreaking decentralized applications (dApps)

These transformative dApps Providing tangible utility and solving real-world problems will drive adoption and increased economic activity within the ecosystem. As the user base expands and capital flows into the space, asset prices will follow, pushing overall market capitalization to unprecedented levels. With this momentum, the cryptocurrency market is expected to exceed $8 trillion, marking the continued growth and innovation of the industry. 7. The resurgence of crypto startups will return the United States to a global crypto power.

The U.S. cryptocurrency industry is on the verge of a transformative renaissance. U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, whose controversial "mandatory regulatory" approach has stifled innovation and driven many cryptocurrency startups offshore, will He left the position in January. His successor, Paul Atkins, brought a very different perspective as a former SEC commissioner (2002-2008), known for his pro-crypto stance, support for deregulation, and support for cryptocurrency advocacy. OrganizationToken Alliance Known for his leadership in other initiatives, his approach promises a more collaborative regulatory framework that promotes rather than stifles innovation.-align: left;">The end of Operation Chokepoint 2.0, a secretive effort to limit crypto startups’ access to the U.S. banking system, further sets the stage for a resurgence. By restoring equitable access to banking infrastructure, the U.S. is creating a An environment that allows blockchain developers and entrepreneurs to thrive without undue restrictions

Regulatory Clarity: SEC Leadership. transformation and balanced regulation Will reduce uncertainty for startups, creating a more predictable environment for innovation

Access to capital and resources: Crypto as banking barriers lift. Money firms will have easier access to capital markets and traditional financial services, allowing for sustainable growth

Talent and entrepreneurship: Reduced regulatory hostility is expected to attract top districts. Blockchain developers and entrepreneurs return to the United States to activate the ecosystem

Increased regulatory transparency and new support for innovation will also lead to a significant increase in token issuance within the United States. Startups will feel empowered to issue tokens as part of their fundraising and ecosystem-building efforts without fear Regulatory backlash. These tokens, ranging from utility tokens for decentralized applications to governance tokens for protocols, will attract international capital while encouraging participation in U.S. projects

Conclusion

Looking forward to 2025 It’s clear that the crypto industry is entering a new era of growth and maturity, with Bitcoin’s solidification as a global reserve asset, the rise of ETFs, and the exponential growth of DeFi and stablecoins laying the foundation for widespread adoption and mainstream attention.

Powered by clearer regulations and groundbreaking technologies, the crypto ecosystem will push boundaries and shape the future of global finance. These predictions highlight a year full of potential, as the industry continues to prove itself a An unstoppable force.