Ten Key Blockchain Themes for Coinbase in 2025: Stablecoins as the Killer Application and Unresolved Challenges Post-Trump Administration
Recently, the US exchange group Coinbase released its 2025 outlook report, in which David Duong, the head of research, stated that the cryptocurrency market is heading towards a new peak of transformation and growth in 2025. As asset classes gradually mature, institutional adoption is rapidly increasing, and the application scenarios in various fields continue to expand. In the past year, the United States approved spot ETFs, and the tokenization of crypto financial products has grown rapidly. The stablecoin market has also achieved deep integration with the global payment framework.
Looking back, all these achievements did not come easily. However, rather than saying that these successes are the culmination of years of hard work, it is more accurate to say that they are just the beginning of a larger chapter. Particularly noteworthy is that the cryptocurrency market has proven its long-term value as an alternative asset class despite the interest rate hikes, regulatory pressures, and uncertainties of 2023.
Although the upward trend in the market continued in 2024, there were also some significant differences. The term “web3” gradually gave way to the more appropriate term “onchain”, and investment strategies shifted from narrative-driven to fundamental demand. More importantly, Bitcoin’s dominant position rose, and the innovation of decentralized finance broke through the possibilities of blockchain technology and laid the foundation for the establishment of a new financial ecosystem.
Looking ahead, the cryptocurrency ecosystem in 2025 is full of countless exciting developments. From a market perspective, we will witness the rise of decentralized peer-to-peer exchanges, prediction markets, and application innovations combining artificial intelligence (AI) with crypto wallets. At the same time, we also see enormous potential for stablecoins, payment solutions, and compliant on-chain capital formation to align with mainstream finance.
The following is a summary of the overall outlook in the report:
1. Post-Trump Era: Still Facing Inflation Challenges
The 2024 US presidential election, with Trump being re-elected, had a significant impact on the cryptocurrency market and drove up the price of Bitcoin. However, in 2025, the market’s attention shifted to the monetary policy of the Federal Reserve. While the Federal Reserve is slowly reducing inflation, it faces challenges in achieving full employment, and expansionary fiscal policies (such as tax cuts or tariffs) may exacerbate inflation pressures. Although the inflation rate has dropped to 2.7%, core inflation remains at 3.3%, exceeding the target value.
2. The Most Crypto-Friendly US Congress in History
The US Congress in 2025 may become one of the most supportive legislative bodies for cryptocurrencies. The support from both parties for clarifying crypto regulations shows that the United States is gradually transforming regulation from resistance to propulsion. Additionally, new policy proposals, including Bitcoin strategic reserves, may provide long-term support for the cryptocurrency market.
3. Cryptocurrency ETFs Expected to be Diversified
Since the approval of Bitcoin and Ethereum spot ETFs in the United States in 2024, the demand in the cryptocurrency market has rapidly increased, with net fund inflows reaching $30.7 billion, far exceeding the scale of previous ETF launches. The introduction of these products not only solidifies Bitcoin’s market dominance but also may drive the listing of more tokenized ETFs in the future, although this process comes with new challenges in terms of trading efficiency and risk management.
4. Stablecoins: Killer Applications in the Cryptocurrency Market
The stablecoin market grew by 48% in 2024, with a total market value of $193 billion, and is expected to reach nearly $3 trillion in the next five years. Stablecoins are gradually becoming the preferred choice for cross-border payments and commercial applications due to their fast and low-cost transaction characteristics. Additionally, the expansion of stablecoin infrastructure by large payment companies such as Visa and Stripe further accelerates their adoption.
5. Tokenization Revolution: The Future of Asset Digitization
In 2024, the tokenization of physical assets grew by over 60%, with a market size of $13.5 billion. Traditional financial institutions and asset management companies such as BlackRock and Franklin are gradually adopting tokenization technology to achieve cross-border settlement and 24/7 trading. Although this field faces challenges in terms of liquidity dispersion and regulation, its future potential cannot be ignored.
6. DeFi’s Recovery: From Lows to Stable Development
Decentralized finance (DeFi) has experienced a process of transitioning from high-risk returns to stable growth. With the gradual clarification of the regulatory environment in the United States, DeFi is expected to attract more institutional investors. Federal Reserve officials also recognize the potential of DeFi in payments and trading platforms, bringing more positive effects to the sector.
7. Telegram Trading Bots: Hidden Cryptocurrency Profit Centers
In 2024, Telegram trading bots became the hidden champions of the cryptocurrency industry, generating profits surpassing many DeFi protocols. Its user-friendly interface and convenient token trading functionality have attracted a large number of users and created substantial returns. Although transaction fees may decrease due to competition, this market will remain strong in 2025.
8. The Intersection of Artificial Intelligence and Cryptocurrencies
Artificial intelligence (AI) is bringing new breakthrough applications to the cryptocurrency market, including automated wallet control and social media interactions. Although the current investment focus is mainly on tokens related to AI concepts, sustainable value growth may occur in the infrastructure layer in the future.
9. Multi-Chain Future: Coexistence or Zero-Sum Game?
Although Ethereum is still the center of DeFi activities, emerging blockchains are challenging its position through low costs and high performance. The future development of the multi-chain ecosystem may rely on the differentiated advantages of each chain, while the progress of application chains and Layer 2 solutions further drives innovation in the overall blockchain field.
10. User Experience: Simplification is Key
Simplified user experience is crucial for the widespread adoption of cryptocurrency technology. Technological advancements, including account abstraction and cross-chain interoperability, are helping to lower user entry barriers. In the future, applications will focus more on attracting users through seamless interfaces to enhance user stickiness.
The report also includes updates on Bitcoin, Ethereum, Solana, tokenization, regulation, and Coinbase Ventures. For example, it specifically mentions the Pectra upgrade of Ethereum, which is expected to be launched in the first quarter of 2025 and is currently in the developer testing network phase. This upgrade covers numerous Ethereum Improvement Proposals (EIPs) aimed at further strengthening network performance, promoting the scalability of decentralized applications, and optimizing user experience.
For further interest, it is recommended to read the complete report.
Risk Warning
Cryptocurrency investment carries a high level of risk, and the price may fluctuate dramatically, potentially resulting in the loss of your entire investment. Please carefully assess the risks.
