[NEWS] Coinbase releases cryptocurrency market outlook for next year, calling it a "pivotal year" for the industry

On the 23rd, Coinbase, a US cryptocurrency exchange, released a report on the cryptocurrency market in 2025.

The report mentions five things to watch. Specifically, it lists the following:

• Stablecoins are the killer app for cryptocurrency, and the day when use cases will exceed cryptocurrency trading is fast approaching.
• Tokenization of RWAs (real-world assets) has challenges but will emerge as a cornerstone of the current market cycle.
• Demand for cryptocurrency ETFs may increase due to an increase in the number of ETFs as physical ETFs and the permission of staking.
• DeFi (decentralized finance) will drive a new era of innovation.
• The stage is being set for the establishment of clear and rational regulations, which will benefit both the cryptocurrency industry and users.

First, regarding stablecoins, he said that "it's just getting started," and mentioned that $27 trillion (about 4,223 trillion yen) of transactions have been processed this year. This is roughly three times the amount expected in 2023, and the company said it has "demonstrated its capabilities" by enabling fast and inexpensive payments for a wide range of users, from startups to global corporations.

The company also evaluated that the tokenization of RWAs has "shown great progress," growing by more than 60% to $13.5 billion (approximately 2 trillion yen) as of December 1 this year. Considering that experiments are currently underway to use tokenized RWAs as collateral assets for other financial products, and that the trend is spreading to areas such as commodities, corporate bonds, real estate, and insurance, the company analyzed that "the tokenization of real-world assets is expected to grow significantly."

On the other hand, the company also mentioned that there are challenges that must be overcome, such as regulations and liquidity, and predicted that it will be several years before the tokenization of RWAs can be used to streamline portfolio construction and the entire investment process by moving it on-chain.

Regarding cryptocurrency ETFs, Coinbase states that the entire cryptocurrency market has been transformed by the Bitcoin (BTC) spot ETF approved this year. Currently, the industry is paying attention to the commercialization of several cryptocurrencies such as XRP and Solana (SOL) as spot ETFs, but in the short term, Coinbase analyzes that "demand from institutional investors will be limited to a small number."

In addition, if the SEC (US Securities and Exchange Commission) approves the requirement to redeem ETF shares in cash and the incorporation of staking, which is expected in Ethereum spot ETFs, "it will become an even more attractive asset to investors."

In addition, Coinbase explains that TVL (deposited assets) in DeFi is at an all-time high, and innovative apps such as DePIN (decentralized physical infrastructure) are bringing new user experiences.

The changing regulatory environment and the adoption of on-chain verification could provide a clearer path for traditional institutional investors to participate in DeFi.

Regarding this regulation, he said that the tide has turned with President-elect Trump's victory in the presidential election, and expressed his hope that "the United States will soon have the most cryptocurrency-friendly Congress in history." He continued that cryptocurrency-friendly lawmakers in both houses of Congress will provide a tailwind for the cryptocurrency market.

For these reasons, Coinbase has positioned 2025 as a "critical year," predicting that the industry will experience significant growth as the regulatory and technological environment evolves, allowing it to reach its full potential. He then stated that "this could determine the long-term trajectory of the cryptocurrency industry for decades to come," emphasizing that this will be a year that will determine the future of the industry.

Reference: Report
Image: Shutterstock

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