Cryptocurrency market trends february 2025
The U.S. spot Bitcoin ETPs will collectively cross $250bn AUM in 2025. In 2024, the Bitcoin ETPs collectively took in more than $36bn in net inflows, making them the best ETP launch as a cohort in history https://reddog6.com/. Many of the world’s major hedge funds bought the Bitcoin ETPs, including Millennium, Tudor, and D.E. Shaw, while the State of Wisconsin Investment Board (SWIB) bought a position, according to 13F filings. After just 1 year, the Bitcoin ETPs are only 19% away ($24bn) from flipping the AUM of all the U.S. physical gold ETPs. -Alex Thorn
This year was marked by two major uplifts: the launch of spot-based Bitcoin ETPs in the United States, and the election of Donald Trump for a second, non-consecutive presidential term. Between those events, the market ranged in volatile, indecisive sideways chop for 237 days. While these events served as both catalysts and backdrops for the market in 2024, 2025 will see an expansion of market breadth and narratives. Without further ado, below are some of Galaxy Research’s crypto market predictions for 2025.
DeFi will enter its “dividend era” as onchain applications distribute at least $1 billion of nominal value to users and token holders from treasury funds and revenue sharing. As DeFi regulation becomes more defined, value sharing by onchain applications will expand. Applications like Ethena and Aave have already initiated discussions or passed proposals to implement their fee switches—the infrastructure enabling value distribution to users. Other protocols that previously rejected such mechanisms, including Uniswap and Lido, may reconsider their stance due to regulatory clarity and competitive dynamics. The combination of an accommodative regulatory environment and increased onchain activity suggests protocols will likely conduct buybacks and direct revenue sharing at higher rates than previously observed. -Zack Pokorny
Best cryptocurrency to invest in 2025
Solana is a blockchain platform that focuses on scalability and speed. It was created by former Qualcomm engineers and launched in 2020. The platform can process up to 50,000 transactions per second, making it one of the fastest blockchains in the market.
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Solana has positioned itself as one of the fastest and most scalable blockchain networks, offering ultra-low transaction fees and high-speed processing. Its DeFi and NFT ecosystems continue to thrive, with new projects launching on the Solana blockchain regularly.
The Binance token (BNB) is a native digital asset of the Binance ecosystem. It plays many roles in the Binance ecosystem, from using transaction fees on the exchange to creating liquidity for projects doing an IEO – Initial Exchange Offerings. The more people who are participating in trading and investing through the Binance exchange, the more demand there will be for this token.
Ethereum remains the most widely used smart contract and DeFi platform, with continuous upgrades improving scalability and reducing gas fees. Its strong developer community and institutional backing ensure it remains a top blockchain for innovation.
Avalanche (AVAX) is a high-performance blockchain platform designed to facilitate decentralized applications (dApps) and enterprise solutions with remarkable speed and scalability. Launched in 2020, Avalanche utilizes a unique consensus mechanism known as Avalanche Consensus, which enables near-instant transaction finality and supports thousands of transactions per second. This impressive capability positions Avalanche as a strong competitor to established platforms like Ethereum, appealing to developers and investors alike.
Cryptocurrency market analysis february 2025
In contrast to the grim revelations about market liquidations, Bitcoin continues to show remarkable strength and resilience. With its price soaring to $98,039 and a market cap surpassing $2 trillion, Bitcoin has significantly outperformed top altcoins by a 15% margin last year. Analyst Percival predicts a potential rise to $150K, provided the market cap reaches $3 trillion.
Following January’s turbulence, February appears relatively quiet in terms of major financial events. However, Bitcoin has historically performed exceptionally well in February, with a strong tendency toward upward movement. Could this relatively quiet February present an opportunity for the market to build wealth under the radar?
However, it is crucial to recognize that stability in the crypto market is often a relative term. Compared to the wild fluctuations of previous years, a period of consolidation might seem calm. Yet, even during these periods, significant price movements can occur, and individual altcoins can experience substantial volatility.
The Bank of England’s current rate stands at 4.75%, which mainstream analysts consider overly restrictive. The Monetary Policy Committee (MPC) may need to accelerate its rate-cutting cycle to prevent prolonged economic stagnation. Market consensus expects a 25 basis point cut at this meeting.
A recent Binance Research, quoted by Crypto Street reveals an in-depth analysis of January’s market trends, key narratives, and sector-specific developments that could influence the markets in February.