According to a recent research note by Steno Research, the cryptocurrency market is poised for its best year ever in 2025. With Bitcoin (BTC) and Ether (ETH) expected to crush all-time highs, this year promises to be a remarkable one for crypto enthusiasts.
Bullish Projections for BTC and ETH
Steno Research predicts that BTC’s spot price will surpass $150,000, while ETH is expected to reach $8,000. These projections are based on several factors, including:
- An unprecedentedly favorable regulatory environment for cryptocurrencies
- A supportive macroeconomic climate marked by declining interest rates and improved liquidity
- The historically strong post-Bitcoin-halving performance
- Institutional adoption reaching unparalleled levels, bolstered by significant inflows into U.S.-based Bitcoin and Ethereum ETFs
Institutional Adoption and ETF Inflows
Steno expects BTC and ETH exchange-traded funds (ETFs) to see net inflows of $48 billion and $28.5 billion, respectively, in 2025. This is a significant increase from previous years, indicating growing institutional interest in cryptocurrencies.
Altcoin Season: A Broader Market Trend
Ether is expected to perform especially well in 2025, significantly outperforming Bitcoin. According to Steno, the ETH/BTC ratio will hit at least 0.06 by the end of 2025, nearly double the current level of around 0.035. This will usher in a broader alternative cryptocurrency — or ‘altcoin’ — season in 2025.
Bitcoin Dominance and Altcoin Season
Bitcoin dominance measures BTC’s percentage of crypto’s total market capitalization. Steno predicts that Bitcoin dominance will drop from its current levels of nearly 57% to around 45%. This decrease in dominance will create opportunities for altcoins, such as Ethereum and Solana, to shine.
Onchain Activity and Decentralized Finance
Steno’s prediction is partly based on the argument that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin. Trump’s presidency encourages more robust onchain activity, which benefits altcoins such as Ethereum and Solana significantly.
The total value locked (TVL) in decentralized applications is forecasted to hit $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. This growth will be driven by the increasing adoption of decentralized finance (DeFi) protocols and the growing popularity of altcoins.
Similar Optimism from Grayscale
Others, including asset manager Grayscale, are similarly optimistic about the crypto market in 2025. In December, Grayscale added several DeFi applications, including two on Solana, to its list of the top 20 tokens to watch in the first quarter of 2025.
Grayscale cited the warming US policy environment as a key factor. Trump has promised to appoint industry-friendly leaders to key regulatory agencies and make the US "the world’s crypto capital."
A New Era for Cryptocurrencies
The crypto market is on the cusp of a new era, driven by favorable regulatory environments, growing institutional adoption, and increasing demand for decentralized finance protocols. As the market continues to evolve, one thing is certain: 2025 will be an exciting year for crypto enthusiasts.
Related Articles
- Grayscale adds AI launchpads, Solana DeFi apps to Q1 2025 top tokens
- Ether is poised to perform especially well in 2025, significantly outperforming Bitcoin
- The total value locked (TVL) in decentralized applications is forecasted to hit $300 billion in 2025
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