Stacking DAO’s senior executive gave seven predictions about the crypto industry’s development for 2025

What’s new? Leeor Shimron, the head of growth at DeFi bitcoin platform Stacking DAO, has given some predictions about developments in the crypto space for 2025 in his column for Forbes. He noted that in the past year, the industry has established itself as an unstoppable force on the global stage, helped by the launch of exchange-traded funds (ETFs) based on major cryptocurrencies, bitcoin’s rise above $100 000, the rise of stablecoins reinforcing the dollar’s global dominance, Donald Trump’s support for cryptocurrencies, and increased institutional adoption.

Material by Forbes

What else is known? According to Shimron’s prediction, in the coming year, the leading country of the G7 or BRICS association will announce plans to create a strategic bitcoin reserve following the United States.

According to the entrepreneur, other nations will seek to get ahead of the United States to gain an advantage in diversifying their national reserves. Meanwhile, the limited supply of BTC and its growing role as a means of savings may reinforce the need for quick action by countries.

The senior executive of Stacking DAO also expects major US tech companies — Apple, Microsoft, Google, Amazon, Nvidia, Tesla, and Meta — following MicroStrategy to start investing in bitcoin and storing it on their own balance sheets.

This will be facilitated by new accounting rules from the FASB, under which companies will be able to account for cryptocurrencies on the balance sheet at fair value, recording both gains and losses depending on market fluctuations.

Earlier, Marathon, the largest US miner, said the United States should become the leader in terms of bitcoin accumulation and share of the global network hashrate to protect itself from foreign interference.

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Shimron also believes that Layer 2 (L2) networks will be a major trend in 2025, allowing bitcoin to be used not only as a means of savings but also as an asset in DeFi applications. Protocols such as BOB, Babylon, and CoreDAO are already gaining popularity.

Previously, bitcoin holders had to transfer assets to other networks such as Ethereum to work with DeFi, creating wrapped versions of BTC using centralized custodians. Such versions of bitcoin include BitGo’s WBTC, Binance’s BTCB, and Coinbase’s cbBTC. This method exposes users to the risks of centralization and censorship.

In turn, bitcoin-based L2 solutions mitigate these risks. The developer notes that they increase the scalability and programmability of the asset, allowing DeFi applications to run successfully on the most secure and decentralized blockchain. He expects such projects’ total value locked (TVL) to exceed $24 billion next year.

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Shimron also believes that spot ETFs based on bitcoin and Ethereum will be followed by funds based on the largest altcoins, particularly Solana (SOL). More sophisticated products with balanced portfolios, such as index-based crypto ETFs to diversify access to a range of established, highly capitalized cryptocurrencies and innovative protocols, will also emerge in the stock market.

Such innovations will make crypto investing more accessible, efficient, and attractive to a wide range of investors, attracting more capital into this space.

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According to Shimron’s next prediction, in 2025, the capitalization of stablecoins will double to over $400 billion. Already, such assets are an example of the successful use of cryptocurrency, as they act as a bridge between traditional finance and the crypto ecosystem.

Around the world, millions of people use stablecoins for everyday transactions and as a hedge against the volatility of local currencies, gaining access to the dollar’s relative stability.

The developer notes that growth will be aided by passing bills that will provide regulatory clarity and encourage innovation in the sector. In addition, US regulators are increasingly recognizing the strategic importance of stablecoins in reinforcing the dollar’s global dominance as the world’s reserve currency.

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Overall, Shimron predicts the total capitalization of the crypto market to grow above the $8 trillion mark. In 2025, the influx of developers into the industry will intensify, leading to the creation of new decentralized applications (dApps) with millions of audiences in the areas of AI, DeFi, decentralized physical infrastructure (DePIN), and others.

Finally, the author of the article believes that the US will become a global crypto hub as a result of the departure of the Joe Biden administration, which implemented a program to de-bank crypto firms and refused to create a regulatory framework for the industry, which contributed to the outflow of startups abroad.