3 reasons why 2025 is set to be another blockbuster year for Bitcoin and the crypto sector

Summary

In 2024, cryptocurrency emerged as a significant force in global finance, driven by political support, AI advancements, and blockchain competition. Bitcoin surged 126% post-halving in April, supported by major Wall Street players and the launch of spot Bitcoin ETFs, which increased total assets under management from $27B to $109B. Pro-crypto candidates gained congressional seats, enhancing the potential for legislation like the BITCOIN Act, which proposes the U.S. purchasing 1 million BTC. Smart contract platforms faced intense competition, with Ethereum's growth lagging behind faster alternatives like Solana. Ethereum's modest 65% price increase contrasted with significant upgrades planned for 2025. The Web3 sector thrived, particularly through AI and real-world asset tokenization, with AI tokens rising 630% and RWA tokens gaining 570%. DeFi saw a resurgence, nearing a total value locked of $250 billion. Crypto gaming expanded dramatically, with unique active wallets increasing from 1.3 million to nearly 9 million. The momentum from 2024 is expected to continue into 2025.