Top 5 Cryptocurrency Trends to Watch This Year
The year 2024 marked a turning point for cryptocurrencies. This year saw more than 617 million crypto users worldwide. It was also the year Bitcoin broke the $100,000 mark for the first time in history. Now, based on these success stories and many others, we can predict a strong 2025 for these digital assets. Let’s dive into the key crypto trends to watch this year.
More Cryptocurrency Users and Traders
The number of cryptocurrency investors is skyrocketing. According to Statista, there are over 860 million users globally, while Binance predicts this figure could soon surpass 1 billion. Remarkably, in 2020, there were only 66 million crypto owners, so it’s evident that these coins will shake up the online payments sector.
This growth is reshaping the online payments landscape. With more investors entering the market, businesses have to integrate cryptocurrency into their payment systems. Leading global brands like Microsoft and ExpressVPN are already processing Bitcoin payments. Crypto acceptance is even more widespread in online gaming. Today, most new sweepstakes casinos allow gamers to purchase tokens using dozens of cryptos. These sites are taking advantage of blockchain technology to offer seamless, secure, and borderless payment options.
Below are a few reasons why you should use cryptos in 2025:
- Crypto transactions are available around the clock.
- Payments are faster and cheaper than traditional payments.
- Crypto transactions cannot be edited or reversed.
- Accepting these coins can break geographical barriers.
Stronger AI-Cryptocurrency Relationship
You have probably heard a few things about AI-driven meme coins. For those who don’t know, these are digital currencies developed by AI technologies to transform viral memes into crypto coins with real value. Dogecoin is arguably the most popular AI crypto, created from an online joke between two Aussies. Today, this coin has a market capitalization of $47 billion. Shiba Inu and Pepe Coin are other examples that could thrive this year.
Crypto traders will benefit immensely from this tech trend by leveraging AI trading bots. These automated tools use AI and ML (Machine Learning) algorithms to analyze crypto market data and provide actionable recommendations. Some advanced trading bots can also auto-execute trades. It’s a great way to make factual and non-emotional trading decisions.
More Spot ETFs to be Approved
The stars aligned perfectly for Bitcoin last year. This coin’s value broke the glass ceiling after the approval of Bitcoin ETFs by the SEC in January, with Ethereum ETFs approved a few months later. ETFs (exchange-traded funds) are crypto-related assets that brokerage firms offer on traditional exchanges. Approved ETFs lead to increased investor confidence and higher coin values.
The new year could see more crypto spot ETFs make their way into Wall Street. The election of Donald Trump, a public supporter of cryptos, into the White House paves the way for this to happen. In addition, SEC Chair (Gary Gensler), a harsh critic of cryptos, will step down later in January 2025. Let’s just say the crypto ETF path should be smoother under the new regime.
Crypto Theft is on the Rise
More people are investing in cryptos, which is undoubtedly a good thing. However, crypto theft and heists will continue to be a significant challenge for this industry in 2025. We witnessed some crypto heists worth billions of dollars last year, with some cases going undocumented. The threat could be higher in 2025, with attackers keen to use technologies like AI to become more innovative.
Research published by iDenfy.com reveals that attackers stole $739 million worth of cryptos in Q1 of 2024. The report further adds that phishing attacks and private key compromises were the main reasons behind this staggering number. Another study by Chain Analysis reveals that the number of stolen cryptos increased by 21.07% between 2023 and 2024.
These numbers suggest the need to be vigilant and proactively protect your cryptos. Here’s what you can do to stay safe:
- Leverage hardware wallets whenever possible.
- Create strong crypto wallet passwords.
- Use 2FA and Multi-Factor authentication.
- Withdraw your digital assets as soon as possible.
- Don’t trade or use your coins on untrusted platforms.
Green Cryptocurrencies to Get More Attention
The environmental impact of cryptos has come under sharp criticism lately. This problem is attributed to a process called cryptocurrency mining or proof of work. It’s an energy-intensive process that requires miners to solve complex algorithms using high computational power. For instance, UN scientists found that 67% of energy used to mine cryptos is from fossil fuels.
Thankfully, the industry is moving swiftly to embrace eco-friendly crypto-mining processes. This year, more green cryptocurrencies could rise to make an environmental difference. These digital coins focus mainly on environmental sustainability, reducing energy consumption by nearly 99.9%.
Below are some green cryptos to watch in 2025:
- Cardano
- ICP (Internet Computer)
- Solana
- Green Bitcoin
- Algorand
Conclusion
These are our top 5 crypto predictions for 2025. We also expect stable coin assets to increase and more worldwide regulation for this blockchain technology. All in all, the crypto industry could write its biggest success story yet in 2025. Don’t miss out on this trend.