From Strategic Bitcoin Reserves to AI Tokens: Our 10 Expectations for 2025

2024 was a historic year for crypto. The approval and success of U.S. spot crypto ETFs signaled the mainstream adoption of this emerging asset class. Additionally, the reelection of Donald Trump as U.S. president, along with his crypto-friendly administration, sets the stage for an even stronger 2025.

What major developments can we expect in the coming year?

The Amdax Asset Management team presents its ten key expectations for the crypto market in 2025.

The approval of multiple U.S. spot bitcoin ETFs by the Securities and Exchange Commission (SEC) laid the foundation for Senator Cynthia Lummis to introduce a bill in July 2024, proposing a strategic bitcoin reserve. The bill calls for the U.S. Treasury to purchase 1 million bitcoin.

This proposal is expected to pass both the Senate and the House of Representatives, supported by the new Trump administration. If the U.S. adopts bitcoin as a strategic reserve, it could trigger a global ripple effect, with other countries following suit. Nations with weak currencies and high inflation, such as Argentina and Turkey, may see bitcoin as a way to stabilize their economies.

The likely appointment of Paul Atkins as SEC chairman will create a more favorable regulatory environment for crypto in the U.S. This increases the likelihood of approving additional crypto spot ETFs.

Once a third crypto asset gains ETF approval, others are expected to follow quickly. The most likely candidates include Solana, XRP, Litecoin, and potentially Dogecoin.

Sovereign wealth funds are increasingly exploring ways to protect and diversify their national wealth. Inspired by the world’s largest asset manager, BlackRock, which considers a 2% allocation reasonable, multiple funds are expected to add bitcoin to their portfolios in 2025.

Sovereign wealth funds already invest in innovative assets such as technology and renewable energy. Direct bitcoin investments via spot ETFs provide these funds more control and strategic advantages than indirect exposure through companies like MicroStrategy or bitcoin miners.

The introduction of the Markets in Crypto-Assets Regulation (MiCAR) brings clarity and legitimacy to the European crypto sector but may stifle innovation. Strict compliance requirements place a heavy burden on startups, slowing down innovation in Europe. As a result, regions such as the U.S. and Asia become more attractive for crypto businesses.

Additionally, stringent ESG regulations add extra costs, making it harder for smaller, innovative projects to compete. While MiCAR enhances sector credibility, it risks putting Europe at a competitive disadvantage in the global crypto market.

Despite underwhelming performance in 2024, Ethereum remains the leading smart contract blockchain. 75% of the total value locked (TVL) across all blockchains is stored on the Ethereum network. TVL is expected to rise from $91 billion to $200 billion in 2025.

Ethereum continues to attract institutional investors through U.S. spot ETFs and remains the preferred blockchain for tokenizing traditional assets. Various upgrades will make the network faster and cheaper, reinforcing Ethereum’s dominance in 2025.

Stablecoins have become one of crypto’s most successful innovations. The current market cap of $200 billion is projected to grow fivefold, exceeding $1 trillion in 2025.

Stablecoins play a crucial role in regions facing currency devaluation and economic instability, such as Argentina, Turkey, and Venezuela, where they offer a stable and accessible store of value. Additionally, BlackRock’s involvement strengthens credibility and adoption, positioning stablecoins as a bridge between traditional finance and DeFi.

The memecoin hype will continue in 2025. Solana is currently the leading blockchain for memecoins due to user-friendly applications and low transaction costs. However, competition is increasing from other accessible networks, which may reduce Solana’s dominance over time.

The tokenization of traditional assets (Real World Assets, RWAs) will be a major theme in 2025, with bonds and money market funds increasingly being traded on the blockchain.

Stablecoins initiated this trend, and now, initiatives such as BlackRock’s BUIDL Fund are accelerating adoption. As a result, tokenized fixed income is becoming a driving force within the crypto ecosystem, aiming for greater liquidity, lower transaction costs, and broader accessibility.

The popularity of memecoins and speculative assets has fueled demand for high-throughput Layer-1 blockchains, which process large volumes of transactions at low costs. Solana dominated in 2024, but in 2025, it faces increasing competition from emerging Layer-1s such as Sui, Sei, and Aptos.

These networks focus on DeFi, gaming, and AI applications and are becoming more significant in the crypto ecosystem. With strong institutional backing and billions in funding, they are positioning themselves as serious Solana competitors.

The integration of AI and blockchain is accelerating rapidly. AI infrastructure projects like BitTensor are gaining traction, while AI agents introduce new applications in the crypto space.

As adoption grows, it is expected that at least one AI-related token will enter the top 10 largest crypto assets by market capitalization in 2025.

2025: A Year of Further Crypto Integration into Global Finance

Driven by innovation, institutional adoption, and new regulations, crypto continues to evolve at a rapid pace. Strategic bitcoin reserves, stablecoins, and tokenization are pushing the market toward maturity, while AI, high-throughput blockchains, and Real World Assets create new growth opportunities for 2025.