This is the second part of the article on market outlook from Delphi Digital; here’s the first part.
The market outlook spotlights what might shape the crypto market in 2025. The report paints an exciting picture of the market’s next moves, from stablecoin growth to Solana’s rise. A market outlook will help us understand what is in store for us in the future.
Stablecoin Growth and Credit Expansion
Credit expansion and economic revival are likely to accelerate as stablecoins grow. Another primary problem we face today is excessive crypto market tokenization. Tokens are in millions and include 4 million pump.fun in the market in November 2024 within Solana. In the meantime, the total market cap of the crypto space has only tripled since the last cycle.
This growth is far below the results of previous cycles. In 2017, it increased by 18 folds; in 2020, it increased by 10 folds; compared to these milestones, the current growth rate seems slow.
The missing ingredients? Stablecoin growth and credit expansion. These two elements finally return, thanks to lower interest rates and friendlier regulations. As stablecoins regain their role in trading and collateral, they’ll drive market recovery.
Institutional Capital is Coming
Investors are no longer spectators in the situation. Although the SEC did not approve spot Bitcoin ETFs, it has allowed traditional capital to enter the crypto market. However, investors prefer more developed prospects. They focus more on Ethereum and Solana.
According to Delphi, the rally will include everything protocol-related. However, sound projects support this movement. These include DeFi assets and emerging sectors like AI and DePIN. But, not every token will experience such a significant increase in demand. Data on trading activities also shows substantial disparities in the performance of institutional traders. They primarily buy and sell options from Deribit and Aevo.
The Solana Comeback
Solana has taken everybody’s spotlight because it has all the attributes of a blockchain giant. Certain matters emerged from FTX to Solana while highlighting the elevated growth rates in 2024. It ranks among the few networks that compete with Ethereum thanks to the daily activity of developers in AI, memecoins, and UX.
Conclusion
Delphi’s market Outlook 2025 signals a maturing crypto market split into two groups: One for trading cryptos, the second for purchasing it akin to the shares of a company. Such evolution indicates that the wild western days in the market have already passed, and a civilized structured market is emerging. Stablecoins, institutional money, and Solana’s overall efficiency, innovation, and scalability make the next chapter of crypto seem bright.
Disclaimer
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