The digital asset markets are constantly evolving, and US-based crypto exchange Coinbase has outlined five key trends to keep an eye on in the coming year. In their recent “Crypto Market Outlook” report, Coinbase highlights some exciting developments that could shape the industry in 2025.
First on the list are stablecoins, which Coinbase describes as the “killer app” of the crypto world. The report suggests that stablecoins are just getting started and predicts that their use cases will expand beyond simple trading. In the near future, stablecoins could play a significant role in global capital flows and commerce, revolutionizing how we transact on a global scale.
Following stablecoins, Coinbase points to the tokenization of real-world assets (RWAs) as a key trend to watch in 2025. The report emphasizes that tokenized assets could become a cornerstone of the current crypto market cycle, with firms exploring new ways to use them as collateral for financial transactions. This trend extends beyond traditional assets like US Treasuries, expanding into private credit, commodities, corporate bonds, real estate, and insurance.
In the ETF space, Coinbase expects institutional interest to remain focused on select crypto ETFs. The exchange is also keeping an eye on potential regulatory changes that could impact ETF products, such as the incorporation of staking or in-kind redemptions. These changes could further legitimize crypto investments in the eyes of traditional investors.
Decentralized finance (DeFi) is another area of interest for Coinbase, with the report predicting a resurgence in the DeFi space. Lending protocols are reaching new highs in total value locked, while decentralized exchanges are gaining traction compared to centralized exchanges. This shift could mark a new era for DeFi, expanding its reach and impact within the broader crypto ecosystem.
Lastly, Coinbase highlights the regulatory climate as a key factor to watch in 2025. The report suggests that a pro-crypto majority in the US House and Senate could lead to a more favorable regulatory environment for the industry. Additionally, many G20 countries and major financial hubs are working on regulatory frameworks to accommodate digital assets, creating a more conducive environment for innovation and growth.
Overall, the outlook for the digital asset markets in 2025 is optimistic, with exciting developments on the horizon. From the continued growth of stablecoins to the tokenization of real-world assets, the crypto industry is poised for significant evolution in the coming year. Stay tuned for more updates as these trends unfold.