Which cryptocurrency sectors will explode next year? Coinbase delivers its predictions for 2025

How will the cryptocurrency market perform in the next 12 months? The year is coming to an end, and as we gather with our loved ones to forget about the charts for a few days, the markets already have a direction. Many companies choose this time to publish their analyses, giving us an almost inexhaustible source for identifying future trends.

The 6 sectors that will change the world of crypto

What will the crypto world be like next year? Coinbase, the 2nd largest cryptocurrency exchange platform in the world, wanted to answer the question in a lengthy report published on December 18. DeFi, decentralized identity, DePin, layer 2… Everything is scrutinized. We have read this report and provide you with a condensed summary here.

According to Coinbase, after 4 tumultuous years marked by a clash between the cryptocurrency industry and the Securities and Exchange Commission (SEC), the future looks bright: “ the cryptocurrency market is ready for a radical transformation “. The year 2024 alone has witnessed this paradigm shift:

Spot ETFs were approved in the United States, tokenization of financial products increased dramatically, and stablecoins saw massive growth and greater integration into the global payments landscape.

???? What is tokenization?

First thing Coinbase notes are the changes “ macroeconomic »: the decisions of the United States Federal Reserve (FED), the Congress which is mainly pro-crypto, the arrival of ETFs and institutions, DeFi which is reborn from its ashes, stablecoins which stand out as THE crypto-killer app that we have been waiting for so much, and finally the tokenization revolution.

These 6 points represent the most important changes for the crypto ecosystem. The decisions of the Fed, in the first place, will determine the amount of liquidity that will flow into the market. Then, the congress will help define the legal framework which is so lacking across the Atlantic. Then the ETFs, which are the gateway for institutional investors, will make it possible to change the paradigm of crypto, as assets but also in terms of value.

DeFi, despite its major problems during the previous cycle like the Terra Luna affair returns with more security while retaining the disruptive advantages of this form of finance : « The DeFi may soon expand its reach beyond its primarily cryptocurrency-focused user base and begin to engage more with traditional finance (TradFi). »

Stablecoins have established themselves as the use case game changer of the blockchain, the use case that concerns the whole world by providing a concrete, simple and financially interesting solution: Coinbase analysts estimate that stablecoins will be worth 3,000 billion dollars within 5 years, or 14% of the dollar's M2 money supply.

Finally, tokenization, which is to classic assets what stablecoins are to the dollar, will weigh between 2 and 30 trillion dollars within 5 yearsjust that. The tokenization of the world, which is the new word we use instead of “ blockchainisation ”, is running. Likewise, in 2025, no longer say “ on the blockchain »: say “ on-chain “. This change in vocabulary goes with democratization and the desire to move from an inter-personal “ cyberpunk » to real technology global, accessible to all and easy to use.

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Tomorrow's trends according to Coinbase

The Coinbase report also discusses trading bots, incorporated directly into Telegram, which allow users to invest in memecoins through the messaging interface without even creating a wallet : everything is done automatically.

This way d’onboarder of users is a success of 2024: trading bots on Telegram are the most profitable blockchain applications after stablecoins and native layer 1 fees, ahead of DeFi protocols like Aave or MakerDAO (Sky).

The other key sectors for 2025 are predictive markets, such as Polymarket or Kalshi, gaming, decentralization of DePin infrastructures as well as artificial intelligence, although in the latter case Coinbase emphasizes that no transcendent use has yet stood out.

Finally, many chapters are still being written: layer 2, custom blockchains, improving the user experience, the app interface where you connect with your wallet or even decentralized identity .

These last points no longer concern blockchain and crypto as we know them, but really the future of the internet in a world where our wallet becomes an identity and where all interactions are on the blockchain. Or rather, on-chain.

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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital

Cryptocurrency expert, Marc-Antoine began his journey in Web 3 alongside David Prinçay (current president of Binance ) in the French Cryptocurrency Club. Since then, it is by writing articles in the best-known crypto media in France that he has spread the good word. If you've read an article about crypto, there's a good chance you've read one of his articles. NFT, Blockchain, Web 3, DeFi, there is not a sector that is foreign to it. And don't ask him what the next coin to buy is: it's a maximalist Bitcoin (yes, no one is perfect).

Marc-Antoine Poletti

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