Digital Assets Expected to Continue Strong Performance in 2025 per Industry Experts
The year 2024 has been a whirlwind for the digital asset market, and industry players are feeling optimistic about what 2025 has in store. The recent bullish sentiment in the crypto market is expected to continue into the new year, driven by factors like US President-elect Donald Trump’s election win. Despite some ongoing challenges, such as interoperability issues, experts believe that the future looks bright for digital assets.
Saad Ahmed, who leads Gemini’s Asia business, suggests that developments in the US often influence regulatory changes in other markets, including Asia-Pacific regions like Singapore and Hong Kong. This could lead to more innovation in financial products and improved regulatory frameworks to boost adoption.
The appointment of a pro-crypto US president could also help more established players enter the global ecosystem, opening up opportunities for cross-border collaboration and the tokenization of assets. With regulatory clarity improving in the US, experts like Lim Wee Kian of DBS Digital Exchange anticipate significant growth and collaboration in the industry.
Looking ahead to 2025, Lasanka Perera, CEO of Independent Reserve Singapore, describes 2024 as a phenomenal year for digital assets, with the global cryptocurrency market capitalization surpassing US$3.63 trillion. Bitcoin, which has been leading market rallies, saw a significant price increase, hitting over US$100,000 after Trump’s election win.
Institutional investors are showing a growing interest in Bitcoin, with forecasts suggesting that its price could reach US$200,000 by the end of 2025. Regulatory changes in the US, such as Senator Cynthia Lummis’s proposal for the Federal Reserve to accumulate one million bitcoins, could have a major impact on Bitcoin’s demand and price, potentially influencing other nations to follow suit.
Despite Bitcoin’s market cap decrease, investor interest in altcoins and stablecoins is on the rise. Stablecoins have seen a surge in demand, exceeding a total market cap of US$190 billion. These cryptocurrencies, pegged to the value of other assets, are gaining popularity due to their practical use cases in payments and remittances.
Stablecoins and payments are expected to take the spotlight in 2025, with increased acceptance from major players like Visa, Mastercard, and PayPal. Tokenization of real-world assets, such as currencies, commodities, and bonds, is also on the rise, providing more efficient ways to digitize and trade tangible assets.
In Singapore, initiatives like Project Gua are paving the way for the tokenization of privately held shares, allowing high-net-worth individuals and institutional investors to access previously limited asset classes. As we head into 2025, the future of digital assets looks bright, with innovation, collaboration, and regulatory changes driving the industry forward.
