"2025 will be a breakout year for crypto"

2024 is a historic turning point for Bitcoin and the broader cryptocurrency ecosystem. This year, the first Bitcoin and Ethereum ETFs will be launched, marking true institutional adoption. Bitcoin will break the $100,000 barrier for the first time, while stablecoins continue to solidify the dollar's dominance globally.

2024 is a historic turning point for Bitcoin and the broader cryptocurrency ecosystem. This year, the first Bitcoin and Ethereum ETFs will be launched, marking true institutional adoption. Bitcoin will break the $100,000 barrier for the first time, while stablecoins continue to solidify the dollar's dominance globally. To further drive this momentum, the winning U.S. presidential candidate will make support for Bitcoin a core pillar of their campaign.

Overall, these milestones solidify 2024 as the year the crypto industry proves itself to be an unstoppable force on the global stage. As the industry shifts its focus to 2025, here are seven major predictions for significant events that may occur next year.

1) A major country in the G7 or BRICS will establish and announce a strategic Bitcoin reserve

The Trump administration proposed establishing a strategic Bitcoin reserve (SBR) for the U.S., sparking much debate and speculation. While adding Bitcoin to the U.S. Treasury's balance sheet would require significant political will and congressional approval, merely proposing this initiative has far-reaching implications.

By signaling the possibility of an SBR, the U.S. is effectively inviting other major countries to consider similar measures. Game theory suggests that these countries may be incentivized to take preemptive action, potentially securing a strategic advantage in diversifying national reserves ahead of the U.S. The limited supply of Bitcoin and its emerging role as a digital store of value may heighten the urgency for countries to act swiftly.

Now, a "who will be first" race is underway to see which major country will be the first to incorporate Bitcoin into its national reserves, holding it alongside gold, foreign currencies, and government bonds for asset diversification. This move would not only solidify Bitcoin's status as a global reserve asset but could also reshape the landscape of international finance, having profound implications for economic and geopolitical power structures. The establishment of a strategic Bitcoin reserve by any major economy could mark the beginning of a new era in sovereign wealth management.

2) Stablecoins will continue to grow, doubling to over $400 billion

Stablecoins have become one of the most successful mainstream use cases for cryptocurrencies, bridging traditional finance and the crypto ecosystem. Hundreds of millions of people globally use stablecoins for remittances, everyday transactions, and to hedge against local currency volatility by leveraging the relative stability of the dollar.

In 2024, the circulation of stablecoins will reach an all-time high of $200 billion, with market leaders being Tether and Circle. These digital currencies rely on blockchain networks like Ethereum, Solana, and Tron to facilitate seamless, borderless transactions.

Looking ahead, the growth of stablecoins is expected to accelerate in 2025, potentially doubling to over $400 billion. The passage of specialized legislation for stablecoins will drive this growth, likely providing much-needed regulatory clarity and fostering innovation in the industry. U.S. regulators are increasingly recognizing the strategic importance of stablecoins in reinforcing the dollar's global dominance and solidifying its status as the world's reserve currency.

3) Bitcoin DeFi supported by L2 will become a major growth trend

Bitcoin is transcending its role as a store of value, with Layer 2 (L2) networks like Stacks, BOB, Babylon, and CoreDAO unlocking the potential of a thriving Bitcoin DeFi ecosystem. These L2s enhance Bitcoin's scalability and programmability, enabling decentralized finance (DeFi) applications to flourish on the most secure and decentralized blockchain.

2024 will be a transformative year for Stacks, with the launch of the Nakamoto upgrade and sBTC. The Nakamoto upgrade allows Stacks to inherit 100% of Bitcoin's determinism and introduces faster block speeds, significantly improving user experience. Meanwhile, the trustless Bitcoin-pegged asset sBTC, launched in December, enables seamless participation in DeFi activities such as lending, swapping, and staking—all built on the security of Bitcoin.

Previously, Bitcoin holders seeking DeFi opportunities were forced to move their Bitcoin to other networks like Ethereum. This process relied on centralized custodians like WBTC (BitGo), BTCB (Binance), and cbBTC (Coinbase), exposing users to centralization and censorship risks. Bitcoin L2s mitigate these risks, providing a more decentralized alternative that allows Bitcoin to operate natively within its own ecosystem.

Looking to 2025, Bitcoin DeFi is poised for exponential growth. I predict that the total value locked (TVL) in Bitcoin L2s will exceed the current $24 billion represented by wrapped Bitcoin derivatives, approximately 1.2% of Bitcoin's total supply. As Bitcoin's market cap reaches $2 trillion, L2 networks will enable users to unlock this immense potential value more securely and efficiently, solidifying Bitcoin's role as a cornerstone of decentralized finance.

4) Bitcoin ETFs will continue to surge, with new crypto-focused ETFs emerging

The launch of spot