Crypto will come of age in 2025

Bitcoin (BTC) was born in 2008, which means that 2025 is the final year before the flagship cryptocurrency reaches its metaphorical adulthood of 18 years. This milestone could not have come at a better time: 2025 will indeed be the year that we see the sector “come of age.” There will be tremendous growth, adoption, and momentum across the board.

The industry has overcome several market cycles, and the focus on Bitcoin’s price may give the impression that its growth has been on a rollercoaster trajectory. In reality, key indicators of a digital asset’s success have all risen steadily with Bitcoin. As of January 5, 2025, Bitcoin transactions were up 13.56% from a year ago, indicating heightened network usage. 

Bitcoin exchange-traded funds have also reached $113 billion in total assets under management, showing the diverse ways that investors can gain exposure to BTC and a literal vested interest in the coin’s success. Other tailwinds for the cryptocurrency market in 2025 include the growing institutional adoption of BTC, which is becoming increasingly ingrained in companies’ balance sheets. Regulatory frameworks are anticipated to provide greater clarity and lay out a path towards sustainable adoption.

Furthermore, investors are expected to deepen their focus on prominent sectors from 2024, such as stablecoins and real-world asset tokenization. We can analyze the growth of the industry using a top-down approach, beginning with regulators who establish the frameworks, progressing to investors who will become more active in capital deployment, and concluding with mainstream enterprise and consumer adoption. This stakeholder-centric analysis underscores the growing maturity of the industry as it becomes increasingly intertwined with the economy. 

This analysis shows how crypto’s potential is weaving its way into all corners of business—just as its early believers always imagined.

Increasing regulatory clarity 

There will be increasing regulatory clarity around the world as markets compete to attract crypto businesses.

In the United States, crypto has traditionally operated in a gray area marked by regulatory hostilities and uncertainties. During the Biden administration, the Securities and Exchange Commission took a hardline stance against the crypto sector and went after exchanges and other crypto businesses by classifying crypto as a security that should abide by existing securities law. The SEC pursued enforcement action against high-profile projects like Ripple and portrayed the field as rife with fraud and scams. Amid these regulatory risks, many founders have since avoided the US market. 

The election of President Trump, however, heralds a new governance that is keen to set up a legal framework that provides greater clarity and promotes sustainable adoption of cryptocurrency. We anticipate regulations on stablecoins to be first laid out in 2025 before the broader market structure frameworks are established. 

Elsewhere, we see regulatory frameworks crystallizing across different countries, providing clarity for companies operating in this industry. Singapore, which has one of the most progressive frameworks in the world, has laid out the Digital Payment Token regime and Stablecoin Regulatory Framework. 

In East Asia, Hong Kong also established comprehensive frameworks for crypto: Businesses can seek licensing under the Securities and Futures Commission as a virtual asset trading platform, which sets rigorous regulatory standards in AML, CFT, and consumer protections.

In Europe, the Markets in Crypto-Assets Regulation (MiCA) is a comprehensive regulatory framework governing crypto assets, including stablecoins, asset-referenced tokens, and electronic money tokens regulations across EU member states. 

Globally, countries are increasingly embracing cryptocurrency and introducing frameworks to promote adoption and growth in the sector which will be a key tailwind for the industry in 2025.

Increasing VC interest in crypto 

Venture capital interest is expected to surge, particularly in rapidly growing crypto sub-sectors. According to a report from PitchBook, valuations across every funding stage for crypto businesses have increased in the first three quarters of 2024 compared to 2023. This pattern indicates renewed interest and momentum in the sector as fundraising becomes more competitive.

The funding trend should continue into 2025 and even see additional growth, thanks to the regulatory clarity that facilitates a bigger appetite for institutional adoption and investment (i.e., investors will feel more comfortable making investments with the knowledge that crypto businesses can legally operate in different markets without fear of disruption from regulators).

Several sectors will be of particular interest to investors. The first is cross-border finance, which has long been beleaguered by high fees, slow transaction speeds, and limited transparency—qualities not exactly ideal for international business. Investors will open their checkbooks for startups that target this problem. For example, Huma Finance raised $38 million for its blockchain-powered payment financing platform in September 2024. Other startups that target cross-border finance will likely be targets for VC investment in 2025. 

Another sector that is anticipated to gain more traction in 2025 is real-world asset tokenization, which involves tokenizing funds, credit, treasuries, commodities, and other assets on a blockchain. RWA grew by 66% in 2024, reaching an astounding $14 billion in tokenized onchain assets. 

One notable project looking to catalyze the adoption of tokenized assets further is Plume Network, a Layer 1 EVM-compatible blockchain tailored to RWA and its specific needs in compliance and liquidity. Plume Network raised a $20 million Series A in December 2024 after a $10 million seed just seven months earlier, underscoring strong investors’ interest in unlocking value gains from tokenized assets compliantly on a blockchain.

Besides tokenized treasuries and private credit, which are key beneficiaries of the tokenization narratives, other asset classes with the potential for significant value unlock through tokenization, coupled with clear regulatory frameworks for RWAs, are areas to watch in 2025.

2025 may be a record year for crypto funding across several metrics (deal value, average deal size, deal quantity), driven by regulatory clarity, industry maturity, and improving global liquidity conditions.

Increasing institutional adoption

Crypto will see increased institutional adoption from enterprises and consumers who want to diversify assets, enhance yields, or improve backend infrastructure.

MicroStrategy recently made headlines with its stockpile of Bitcoin. While MicroStrategy may be an anomaly in the scale of its crypto adoption, many businesses are adopting digital assets to some extent. These businesses factor in crypto and adopt it due to its technological maturity, increasing regulatory clarity, and growing recognition of it as an investable asset class.

Crypto will show its immense value for enterprises and retail users across several mature use cases in 2025. The first is stablecoins, which have swelled to a market cap exceeding $205B and transaction volume exceeding $5.6T at the end of 2024, underscoring their mainstay as digital payment currencies.

Globally, stablecoins are often used for cross-border payments, remittances, merchant payments, and P2P transfers. We expect the adoption of stablecoin to gain further traction driven by the benefits of lower transaction costs and faster settlement times. 

The intersection of artificial intelligence and crypto is another key catalyst for the growth of the industry. In GenAI, control has been dominated by a handful of tech incumbents, such as OpenAI, Facebook, Anthropic, and Google. Companies in decentralized AI, including Sentient, Ceti, Sahari AI, and Aethir, aim to democratize the space so that more companies can unlock operational efficiencies from the technology and contributors to AI development can be fairly compensated.

Collectively, stablecoins, AI, and blockchain infrastructure will drive the next leg of institution and retail adoption. 

Crypto’s crystal ball 

Casting predictions for a field as rapidly changing as crypto is always difficult. There are a multitude of factors, including everything from regulators to bad actors, that can shift the trajectory of the space almost overnight.

After navigating multiple market cycles, the reduced volatility highlights the growing maturity of the crypto industry. We are confident in our outlook for 2025, which will see regulators clarify policies into cohesive frameworks, investors supporting startups at unprecedented levels, and both enterprises and consumers increasing demand for blockchain technologies.

In short, 2025 will mark the year the crypto industry comes of age, firmly establishing itself as an asset class across all sectors, as well as a cornerstone of technological innovation in finance, real estate, AI, mobility,  and more.