As we look to 2025, cryptocurrency plays an increasingly large role in shaping the changing financial landscape. From its rising inclusion in diversified investment portfolios to the evolution of blockchain-driven financial services, crypto continues to meaningfully disrupt traditional finance.

 
This year promises deeper integration of crypto into mainstream financial strategies, spurred by growing trust, accessibility and innovation. Here are my six top-of-mind themes for the coming year.

1. Crypto becomes a staple in the ideal investment portfolio

Crypto’s historic asymmetric return profile has made it increasingly difficult for investors to justify not having it in their portfolios.

In 2025, strategies like dollar-cost averaging (DCA) that enable investors to start small and steadily increase their holdings will continue to gain ground. I expect approaches that promote the gradual familiarization of the asset class to accelerate in the new year.

2. Crypto platforms turn their focus to offering clients medium- and long-term wealth building strategies, with trust as the biggest differentiator

2025 is going to see exchanges and crypto platforms shift product strategy toward offering clients medium- and longer-term wealth-building strategies. The foundation of these services will be earning yield on stablecoin holdings, with more sophisticated products and services layered on top.

Given the lessons learned from last cycle with the collapses of FTX, Celsius and Voyager, clients will emphasize platform trust, security and longevity as they choose how to access these opportunities.

3. Stablecoin market sees first real challenges to incumbents, and users are the primary beneficiaries

It’s no secret that stablecoin activity is dominated by Tether and USDC. In 2025, they will face real competition for the first time, as a new generation of stablecoins launch with regulatory and regional advantages over the Big Two.

The increased competition will be a boon to users, who will have more tools to manage digital fiat currencies, while the adoption of alternatives can help manage the counterparty risk of stablecoin issuers.

4. Bitcoin gets more mainstream interest when inflation rebounds

Some analysts predict inflation could stay above the Fed’s 2% target. After the past few years, everyone in the West now has first-hand experience of what a not-so steady erosion in fiat currency value looks like, for the first time since the 1970s.

Bitcoin’s rigidly fixed supply – which not even gold can offer – could lead to further mainstream appreciation of its deflationary value proposition. This could spur further adoption as investors seek out store of value assets that protect wealth against a continued devaluation in fiat currencies.

5. Crypto markets become less volatile

Over the past decade, crypto volatility has generally trended downward. This is because more adoption has led to more liquidity, which makes the market less susceptible to violent price swings in either direction.

We anticipate that crypto volatility could continue to decrease now that ETFs have made crypto exposure accessible to a broader swath of investors than ever before. This could make crypto a more attractive proposition for investors further along the risk appetite curve (and serve as a tailwind for strategies like DCA).

6. New generation of banking services built on crypto reach the mainstream

We have already started to see new investment products – like money market funds – launch on different blockchains. Established financial institutions understand and are leveraging the efficiencies gained by using this technology as well as its ability to open products up to whole new markets.

In 2025, I fully expect we’ll see more familiar financial products built on blockchain to come to market — including payments, high-yield saving accounts, credit cards, borrowing and more.

2025: Crypto graduates to the main stage

In 2025, the maturation of the crypto market will usher in a new era of opportunity and stability for investors and institutions alike. Whether it’s the mainstream adoption of Bitcoin as a store of value, the emergence of competitive stablecoins, or platforms prioritizing long-term wealth-building strategies, crypto’s influence will extend further into the financial world.

With trust and accessibility at the forefront, this transformative year is set to solidify crypto’s place as an essential pillar in the modern financial ecosystem.