Author: Mark Greenberg, Kraken Global Consumer Business Leader

Compiled by: Vernacular Blockchain

p>

Looking forward to 2025, cryptocurrencies will play an increasingly important role in shaping the changing financial landscape. From their gradual inclusion in diversified investment portfolios to the development of blockchain-powered financial services, cryptocurrencies continue to have a profound impact on traditional finance.

This year, cryptocurrencies continue to grow as trust, accessibility, and innovation continue to grow Deeper integration will be achieved in mainstream financial strategies. Here are the six trends I’m most concerned about heading into 2025.

1. Cryptocurrencies have become an essential part of an ideal investment portfolio

The historical asymmetric return characteristics of cryptocurrencies make it increasingly difficult for investors to justify their failure to Its inclusion in the portfolio defense.

In 2025, strategies like fixed investment (DCA) will continue to gain popularity, which allows investors to start with small investments and steadily increase their holdings. I expect that approaches that promote incremental familiarity with this asset class will accelerate in the new year.

2. Crypto platforms will focus on providing customers with mid- to long-term wealth accumulation strategies, with trust as the biggest differentiating factor

In 2025, trading platforms and crypto platforms will transform Product strategy provides customers with mid- to long-term wealth accumulation solutions. The basis of these services will be earning income through stablecoin holdings, and layering more complex products and services on top of this.

Given the lessons learned from the collapse of FTX, Celsius and Voyager in the last cycle, customers will pay more attention to the platform when choosing how to access these opportunities trust, security and durability.

3. The stablecoin market will usher in the first real challenge to the existing giants, and users will become the main beneficiaries

The stablecoin market has long been dominated by Tether and USDC , this is no secret. In 2025, the two giants will face real competition for the first time as a new generation of stablecoins is launched to challenge the two existing leaders with regulatory and regional advantages.

This competition will bring benefits to users, who will have more tools to manage digital fiat currencies, and the adoption of alternative tokens will also help manage the opponents of stablecoin issuers party risk.

4. Bitcoin will gain more mainstream attention when inflation rebounds

Some analysts predict that inflation may remain above the Fed's 2% target for a long time. Over the past few years, everyone in the West has experienced firsthand the sustained decline in the value of fiat currencies for the first time since the 1970s.

Bitcoin's fixed supply - something that even gold cannot provide - may drive more mainstream acceptance of its inflation-fighting value proposition. This will promote greater adoption of Bitcoin as a store of value asset that protects wealth against the backdrop of devaluation of fiat currencies.

5. The volatility of the crypto market has weakened

Over the past decade, the volatility of cryptocurrencies has shown an overall downward trend. This is because more adoption brings more liquidity, making the market less susceptible to severe price swings.

As ETFs give more investors access to cryptocurrencies, we expect volatility in the crypto market to continue to decline. This could make cryptocurrencies more attractive to investors with a higher risk tolerance (and provide support for strategies like DCA).

6. A new generation of banking services based on cryptocurrency goes mainstream

We have begun to see new investment products - such as money market funds - on different blockchains launched on. Traditional financial institutions have recognized and are taking advantage of the efficiencies this technology brings and its ability to open up products for entirely new markets.

In 2025, I expect more familiar financial products will be built on blockchain and brought to market - including payments, regular savings, high-yield Savings accounts, credit cards, loans, etc.

7. Summary: 2025: Cryptocurrency moves to the main stage

In 2025, the maturity of the cryptocurrency market will bring a new era to investors and institutions A time of opportunity and stability. Whether it’s the mainstream adoption of Bitcoin as a store of value, the emergence of competing stablecoins, or platforms prioritizing long-term wealth accumulation strategies, cryptocurrency’s influence will further expand into the financial world.

With trust and accessibility at its core, this year will mark a turning point as cryptocurrencies solidify their place as an important pillar in the modern financial ecosystem.