Coinbase Predicts 5 Key Trends That Will Shape the Crypto Industry in 2025

The report identifies five critical areas for growth and regulation: stablecoins, tokenization, crypto exchange-traded funds (ETFs), decentralized finance (DeFi)

Coinbase, a major U.S. cryptocurrency exchange, has released a detailed report outlining the key trends that it believes will shape the crypto industry in 2025.

The report identifies five critical areas for growth and regulation: stablecoins, tokenization, crypto exchange-traded funds (ETFs), decentralized finance (DeFi), and overarching crypto regulations.

Here's a closer look at each trend:

1. Growing Influence of Stablecoins and Tokenization

Stablecoins have achieved substantial growth this year, with their market cap surging over 50% from $130.5 billion in January to $204.5 billion by December, according to data from DefiLlama. These assets have facilitated more than $27 trillion in transactions this year alone, tripling last year’s volume.

Coinbase predicts that the primary uses of stablecoins will shift from trading to more global applications in capital flows and commerce. For instance, stablecoins could play a role in international trade settlements, remittances, and cross-border payments.

Meanwhile, the tokenization of real-world assets (RWAs) has also grown significantly, increasing by over 60% to $13.5 billion. This rise is supported by the increasing use of RWAs as collateral across various sectors, including private credit and real estate, which are integrating into the crypto ecosystem.

2. Expansion of Crypto ETFs and a Resilient DeFi Ecosystem

Coinbase’s analysts are optimistic about the expansion of crypto ETFs, anticipating increased institutional interest and potential regulatory advancements that could make these products more attractive to investors.

Particularly, the anticipation builds around more approvals for tokens such as XRP, Solana, and Litecoin. However, the analysts also note the potential impact of macroeconomic conditions and ETF fee structures on investor interest.

The DeFi sector is poised for a transformation with robust lending protocols and decentralized exchanges (DEXs) paving the way. New applications like Decentralized Physical Infrastructure Networks (DePIN) and prediction markets are expected to mature and expand throughout 2025, driven by a more resilient DeFi ecosystem.

3. Anticipated Regulatory Advances

One of the most significant forecasts involves the regulatory landscape. Coinbase expects that 2025 could see the emergence of a pro-crypto administration, which would foster a favorable environment for crypto innovations and investments.

The analysts predict the establishment of a comprehensive regulatory framework for cryptocurrencies, moving away from the current practice of regulation by enforcement. This framework would likely include clear definitions, licensing requirements, and consumer protection measures.

Coinbase also anticipates the integration of crypto into the traditional financial system, with banks and other institutions offering crypto services to their clients. However, the report suggests that this process could be gradual due to the need for regulatory clarity and technological integration.

4. Web3 Gaming and Metaverse Advancements

Coinbase predicts that Web3 gaming will continue to grow rapidly, driven by the increasing adoption of play-to-earn models and the integration of decentralized technologies.

The report anticipates the emergence of more advanced and immersive metaverse experiences, supported by the convergence of Web3, XR (extended reality), and AI (artificial intelligence) technologies. These experiences could include virtual worlds, social interactions, and economic activities.

5. Layer-2 Scaling Solutions and Multi-Chain Ecosystems

Coinbase highlights the growing importance of layer-2 scaling solutions for Ethereum and other blockchain networks. These solutions aim to increase transaction capacity and reduce fees, making blockchain technology more accessible and efficient for a wider range of applications.

The report anticipates the continued development and adoption of multi-chain ecosystems, where different blockchains specialize in specific functions or use cases. This interoperability between chains could facilitate the transfer of assets, data, and liquidity across various networks.