As speculation continues to swirl regarding Bitcoin’s (BTC) future and the overall cryptocurrency market, asset management firm VanEck has unveiled some bullish predictions that fuel optimism for continued growth.
VanEck’s Bold Bitcoin Prediction: A Surge to $180,000
VanEck has put forth an exciting forecast, predicting that the current bull market in crypto will hit a “medium-term peak” by the first quarter of 2025. They believe that new all-time highs will be reached by the end of that year. Bitcoin, they estimate, could soar to around $180,000, while Ethereum (ETH) might exceed $6,000. In addition, they’re projecting Solana (SOL) to top $500 and Sui (SUI) to climb over $10.
The report also suggests that the United States will take steps to adopt Bitcoin as a strategic reserve asset, a promise made by President-elect Donald Trump, signaling a broader acceptance of cryptocurrency. This move is expected to encourage further adoption of digital currencies.
Anticipated Changes in Regulation and Adoption
With changes anticipated at the helm of the Securities and Exchange Commission (SEC), there is an expectation for approval of several spot crypto exchange-traded products (ETPs). This includes Ethereum ETPs with staking options and the capability for in-kind transactions for both Bitcoin and Ethereum.
According to the report, VanEck foresees a significant rise in the value of tokenized securities, predicting it to exceed $50 billion soon. This comes after a notable 61% increase to $12 billion this year.
Currently, most of these securities reside on permissioned chains. However, 2025 is predicted to be a significant year, especially as institutions like the Depository Trust & Clearing Corporation (DTCC) examine linking public and private blockchains.
On another front, stablecoins are poised to revolutionize payment systems, with daily settlement volumes potentially tripling to reach $300 billion by the end of 2025. Boosted by their growing use in global trade, remittances, and collaboration with major tech and payment networks, stablecoins could handle transaction volumes equivalent to 5% of DTCC’s daily operations.
DeFi Set to Shine and Reach Unprecedented Heights
The report from VanEck also contemplates the rise of one million new AI agents, these "digital workers" expected to autonomously handle tasks and make decisions. In doing so, they will boost on-chain activity by moving beyond decentralized finance (DeFi) into sectors like social media, gaming, and consumer apps.
Bitcoin’s Layer-2 solutions, VanEck forecasts, will have a total locked value (TVL) of 100,000 BTC, capitalizing on a remarkable 600% growth in 2024 that took TVL to 30,000 BTC. Additionally, Ethereum’s network expansions, particularly in its blob space, are anticipated to generate $1 billion in fees owing to rapid adoption of Layer-2 solutions, rollup optimizations, and high-fee utilities like tokenized assets and enterprise applications.
VanEck expects decentralized finance (DeFi) to achieve new all-time highs, with decentralized exchange (DEX) volumes soaring to $4 trillion and the total value locked in DeFi climbing to $200 billion. This anticipated growth would largely be driven by AI-related tokens, consumer-facing decentralized applications (dApps), and asset tokenization which enhance liquidity and adoption.
Non-Fungible Tokens and the Changing Landscape of dApps
The market for non-fungible tokens (NFTs) is set for a bounce back, with trading volumes projected to hit $30 billion in 2025. Despite recent downturns, standout projects like Pudgy Penguins and Miladys have continued to do well by fostering strong community connections and evolving into consumer brands.
Looking ahead, VanEck forecasts a closing of the performance gap between decentralized application (dApp) tokens and Layer-1 tokens. In 2024, Layer-1 blockchain tokens had outperformed dApp tokens by a factor of two. However, innovative dApps in areas like artificial intelligence and Decentralized Physical Infrastructure Networks (DePIN) are expected to change this performance dynamic.
As of now, Bitcoin, the market’s top crypto, has reclaimed the $101,820 mark, showing a 2% increase over 24 hours.
Featured image from DALL-E, chart from TradingView.com
