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Coinbase The latest 2025 market predictions identify tokenization, the return of decentralized finance, and the shift toward pro-crypto regulation in the US as key trends for the following year.
Coinbase expects 2025 to be a pivotal year for US cryptocurrency legislation after years of regulatory uncertainty. The exchange said these developments could redefine how cryptocurrencies integrate with traditional finance and regulatory systems in the coming year.
Pro-crypto regulation
According to the exchange, the bipartisan pro-crypto majority in Congress signals a positive shift, transforming regulatory frameworks from obstacles to catalysts for industry growth. In addition, RHe pushed for Bitcoin Strategy (Bitcoin) The reserve reinforces the evolving position among legislators.
In August, Sen Cynthia Loomis Suggested The ideafollowed by Consider Pennsylvania From the Bitcoin Strategic Reserve Act, which could allow a state to allocate up to 10% of its general fund to cryptocurrencies.
While legal challenges remain, these initiatives indicate a growing government interest in integrating Bitcoin into financial strategies.
Internationally, jurisdictions such as the European Union, through its Phased Regulation of Crypto Asset Markets (MiCA), and financial centers such as the UAE, Hong Kong, and Singapore, are building frameworks to foster innovation. This global momentum could boost cryptocurrency adoption and innovation.
A $30 trillion opportunity
Real Asset (RWA) tokenization has gained significant momentum in 2024, with the market growing by more than 60%, reaching $13.5 billion by December. Projections indicate that the sector could expand to a staggering level of between $2 trillion and $30 trillion in the next five years.
The report noted that traditional financial institutions are increasingly adopting tokenization, using blockchain technology to enable near-instant settlements and 24/7 trading. The scope of tokenization is expanding to include government securities, private credit, commodities, corporate bonds and even real estate.
Challenges, such as fragmentation of liquidity across multiple blockchains, remain, but the report said progress in these areas indicates that tokenization can simplify investment and portfolio creation processes.
DeFi brings back utility
After a difficult cycle characterized by unsustainable practices, decentralized finance is now moving into a more mature and transparent phase. Coinbase highlighted the growing synergy between off-chain and on-chain capital markets as a key driver of the return of DeFi.
A shift in the US regulatory environment could be a game-changer, enabling stablecoin governance frameworks and institutional access to decentralized finance. Decentralized exchanges now account for 14% of centralized exchange trading volumes, up from 8% in early 2023, reflecting growing adoption.
Federal Reserve Governor Christopher Waller support The complementary role that decentralized finance plays to central finance adds credibility to the sector’s potential.
Furthermore, innovations such as smart contracts and stablecoins are increasingly viewed as tools to enhance efficiency and reduce risk in traditional financial systems.
Stablecoins and ETFs
Stablecoins and exchange-traded funds (ETFs) based on cryptocurrencies recorded significant growth trajectories in 2024, and Coinbase also sees them as major themes for 2025.
The market value of stablecoins rose 48% to $193 billion, with forecasts suggesting the sector could reach $3 trillion by 2030.
Its role in facilitating faster and cheaper payments and meeting global financial needs makes it a cornerstone of future adoption.
At the same time, he discovered Bitcoin and Ethereum (Ethereum) The ETFs, which were launched in 2024, have attracted significant institutional interest. Their combined net flows have approached $40 billion in less than a year.
Innovations such as in-kind creation and redemption of ETFs can improve efficiency and reduce costs, strengthening their role in the cryptocurrency ecosystem.
