cryptojournalist
Stablecoins and ETFs Leading the Way
Stablecoins and cryptocurrency ETFs are expected to drive significant growth in the crypto market in 2025, according to a Citi report. These trends gained momentum after the November 2024 U.S. presidential election.
Why It Matters
Stablecoins: The combined market cap of major stablecoins like Tether (USDT), USD Coin (USDC), and Dai (DAI) has grown by $25 billion since the election. Stablecoins are essential for decentralized finance (DeFi), serving as the main gateway for users.
ETFs: Crypto ETFs, particularly Bitcoin ETFs, have attracted substantial inflows. In November, Bitcoin ETFs surpassed $100 billion in net assets. Citi estimates that $1 billion in Bitcoin ETF inflows typically results in a 4.7% price increase.
Onchain Growth
Ethereum Activity: Activity on Ethereum and its scaling solutions is up 210% compared to 2023.
Wallet Growth: Both large and small crypto wallets have slightly increased since November 2024, indicating broader adoption.
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