CoinShares has released its predictions for the cryptocurrency market in 2025, highlighting key trends that could shape the industry. The investment firm expects significant changes in U.S. crypto regulation under the Donald Trump administration. Analysts foresee a shift in focus towards Bitcoin (BTC), with altcoins poised to outperform in the near term. Additionally, the emergence of Bitcoin-yielding companies and the continued rise of Ethereum’s Layer 2 solutions are expected to dominate the crypto landscape.
Donald Trump Administration to Influence Crypto Regulation
CoinShares analysts predict that the U.S. will experience a major overhaul in crypto regulation under the Trump administration in 2025. The firm expects that regulatory clarity and support for Bitcoin miners will create a more favorable environment for digital assets. These changes could lead to stronger growth for BTC, as the U.S. adapts to policies that are more welcoming to the crypto industry.
However, CoinShares’ Max Shannon notes that despite BTC’s continued strength, altcoins are likely to outperform in the coming year. The firm believes that miners who focus solely on Bitcoin will see better returns compared to those diversifying into other revenue streams. This trend points to the possibility of altcoins gaining more traction, as investors diversify their portfolios beyond Bitcoin.
Bitcoin Yield Strategies Gain Momentum in 2025
CoinShares has also highlighted the rise of Bitcoin-yielding companies as a key trend to watch in 2025. Several businesses are now adopting Bitcoin as a treasury asset, seeking to generate yields from their holdings. CoinShares’ Satish Patel identifies three major strategies for BTC yield generation: growing Bitcoin holdings relative to company shares, engaging in yield farming, and leveraging derivatives for income generation.
Companies like MicroStrategy, which holds over 420,000 BTC, are setting the stage for others to follow suit. These companies are adopting Bitcoin as a financial strategy, positioning themselves to benefit from both Bitcoin’s value appreciation and its potential to generate returns. This trend is expected to gain momentum as more companies, including names like Block, Marathon Digital, and Metaplanet, accumulate BTC and experiment with yield-generation strategies.
As more businesses start accepting crypto payments, including major players like Amazon, Shopify, and Nike, BTC is increasingly seen as both a store of value and a tool for generating passive income. Patel believes that this trend will continue to expand, with more companies potentially incorporating Bitcoin into their treasuries in 2025.
Ethereum’s Layer 2 Adoption Set for Growth
The prediction also points to Ethereum’s continued growth, particularly in its Layer 2 solutions. Ethereum’s Layer 2 scaling technology, which helps increase transaction speed and reduce fees, is expected to drive further adoption in 2025. Analyst Luke Nolan believes that the institutionalization of Layer 2 chains, demonstrated by companies like Kraken and Sony, will push demand for Ethereum services to new heights.
Nolan adds that Layer 2 adoption will increase the demand for Ethereum’s underlying infrastructure, leading to higher transaction fees and greater network usage. Furthermore, with the upcoming Pectra upgrade, Ethereum is expected to achieve new efficiencies in 2025. However, the network will still face challenges in balancing usability with value accrual as the ecosystem evolves.