As we step into the new year, crypto industry observers are making predictions about the trends that will shape the future of cryptocurrency in 2025. From advanced artificial intelligence (AI) powered trading bots to a potential United States-listed Solana exchange-traded fund (ETF), there are several factors that could contribute to the growth and development of the crypto market.
US-Listed Solana ETF: A Potential Price Catalyst
One of the most significant predictions for 2025 is the launch of a US-listed Solana ETF. Several companies, including asset management giants VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, are vying to offer an approved Solana (SOL) ETF. The leading monolithic blockchain network, Solana has a market capitalization of $91 billion, which is four times smaller than Ether’s $403 billion. This means that Solana needs to capture less investment for more upside momentum.
Crypto investors see an approved Solana ETF as a potential price catalyst, and some say it may not even be priced in. Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio, noted:
Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in.
The spot Solana ETFs are currently under review by the United States Securities and Exchange Commission (SEC), with a deadline for a preliminary decision by the end of January 2025. The deadline for Grayscale’s Solana ETF application is Jan. 23, while the four other applicants expect a preliminary decision by Jan. 25, 45 days after the SEC formally accepted the ETF application for review in November.
AI-Powered Crypto Scams and Hacking Threats
While AI-powered trading bots may be seen as a positive development for the crypto market, hackers fueled by advanced AI tech are expected to see another banner year of thefts and exploits. In 2024, crypto hackers stole $2.3 billion worth of value, marking a 40% increase compared to 2023, according to a report shared by onchain security firm Cyvers.
Total annual funds loss per attack vector
: 2023 : 2024
—————————————:——–:——–
Phishing attacks : $1.2B : $1.8B
Smart contract vulnerabilities : $500M : $700M
Exchange hacks : $300M : $400M
The report highlights the growing threat of hacking in the crypto market, with phishing attacks and smart contract vulnerabilities being the most common types of attacks.
AI-Powered Trading Bots: The Future of Crypto Trading
AI-powered trading bots have already been used to analyze and replicate human trading behavior, offering users 24/7 market access despite carrying significant trading and security risks. An AI agent is a more advanced form of software than the crypto trading bots, as they can adapt and evolve over time, learning from new market dynamics.
Donald Trump’s upcoming presidential inauguration is also seen as a significant growth catalyst for the crypto space, and it is associated with expectations of more innovation-friendly crypto regulation. Industry participants also expect to see more institutional and governmental crypto adoption, driven by the excitement around a potential Bitcoin reserve act in the US, which would deploy BTC as a financial savings technology.
Regulatory Clarity and Crypto-Based ETFs
Investors are hoping to see more regulatory clarity and crypto-based ETFs after Jan. 20, when future SEC chair Paul Atkins will replace Gary Gensler, reigniting hopes that the regulator may drop its legal case against Ripple Labs.
Conclusion
As we look ahead to 2025, it’s clear that the crypto market is expected to undergo significant changes and developments. From AI-powered trading bots to US-listed Solana ETFs, there are several factors that could contribute to the growth and development of the crypto market. However, hackers fueled by advanced AI tech remain a significant threat to the crypto market, highlighting the need for increased security measures and regulatory oversight.
Honorable Mentions
While the above trends only scratch the surface of all the exciting crypto predictions, they illustrate the rapidly changing dynamics of the cryptocurrency industry. Some honorable mentions include:
- Donald Trump’s upcoming presidential inauguration as a growth catalyst for the crypto space
- More institutional and governmental crypto adoption driven by the excitement around a potential Bitcoin reserve act in the US
- Regulatory clarity and crypto-based ETFs after Jan. 20, when future SEC chair Paul Atkins will replace Gary Gensler
Subscribe to Our Newsletter
Stay up-to-date with the latest developments in the crypto market by subscribing to our newsletter. Delivered every Friday, our newsletter breaks down the latest DeFi developments, offers sharp analysis, and uncovers new financial opportunities to help you make smart decisions with confidence.
Subscribe by clicking on the link below: