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According to a recent report by Steno Research, Ethereum (ETH) is expected to overtake Bitcoin (BTC) in 2025. This outlook is driven by historical trends and the expected impact of favorable cryptocurrency regulations following Republican presidential candidate Donald Trump’s victory in the November election. .
Will 2025 be the year of Ethereum?
While the overall cryptocurrency market has soared to unprecedented levels this year — reaching an all-time high (ATH) with a total market capitalization of $3.9 trillion — Ethereum, the second-largest cryptocurrency, has lagged behind in terms of price performance.
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However, Steno’s research a report It suggests that Ethereum could finally achieve a new ATH in 2025, driven by increasing institutional investment and supportive regulatory developments. The report predicts that ETH can hiking To at least $8,000 next year.
Bitcoin is also expected to reach a new ATH of $150,000 in 2025, but Ethereum could more than double its current price of $3,400. Additionally, the ETH/BTC trading pair is expected to rise from 0.035 to 0.06 over the next 12 months.
The weekly chart below shows the underperformance of ETH against BTC since September 2022. However, the pair is now hovering near the crucial support level at 0.035, with expectations of a rebound to the 0.06 level, which was last seen in February 2024.
Steno Research’s optimistic forecast for Ethereum underscores the potential bullish momentum of altcoins in 2025. Mads Eberhardt, an analyst at Steno Research, stated:
This prediction is partly based on the argument that Donald Trump’s US presidential victory is more favorable to altcoins than Bitcoin.
The report adds that Bitcoin Dominance (BTC.D) – a metric used to measure the proportion of the total cryptocurrency market capitalization controlled by Bitcoin – is expected to decline to as much as 45% from its current level.
The following weekly chart shows BTC.D’s ongoing uptrend since September 2022, rising from a low of around 39% to a peak of 61%. However, recent price action indicates the formation of a lower high, indicating a potential sharp decline to around 45%.
DeFi activity will rebound in 2025
The report also predicts a return of decentralized finance (DeFi) activity within the Ethereum ecosystem in 2025. Specifically, the total value locked (TVL) in decentralized applications is expected to reach a new high of $300 billion next year.
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Renewed interest in DeFi could send altcoin prices soaring in 2025. In particular, ETH jump 10% after Trump won the election in November, as improved sentiment surrounding DeFi regulations boosted market confidence.
In addition, exchange-traded funds (ETFs) have attracted more robust inflows Enhance The bull case for ETH is heading into 2025. At press time, ETH is trading at $3,417, up 3% over the past 24 hours.
Featured image from Unsplash, charts from Tradingview.com
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