According to a recent report by Steno Research, Ethereum (ETH) is set to outperform Bitcoin (BTC) in 2025. This forecast is based on historical trends and expected impact from favorable cryptocurrency regulations following the victory of Republican presidential candidate Donald Trump in the November election. .
Will 2025 be the year of Ethereum?
While the overall cryptocurrency market soared to unprecedented heights this year – reaching an all-time total market cap (ATH) of $3.9 trillion – Ethereum, the second largest cryptocurrency, has lag behind in terms of price performance.
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However, Steno Research report suggests that Ethereum could finally achieve a new ATH in 2025, driven by increased institutional investment and supportive regulatory developments. The report predicts that ETH climb to at least $8,000 in the next year.
Bitcoin is also expected to hit a new high of $150,000 in 2025, but Ethereum could more than double from its current price of $3,400. Furthermore, the ETH/BTC trading pair is expected to rise from 0.035 to 0.06 within the next 12 months.
The weekly chart below shows the downward performance of ETH against BTC since September 2022. However, the pair is now approaching a crucial support level at 0.035, with an expected rebound to level 0.06, last seen in February 2024.
Steno Research's optimistic forecast for Ethereum confirms a possible bullish momentum for altcoins in 2025. Mads Eberhardt, an analyst at Steno Research, said:
This expectation is partly based on the argument that the US presidential victory of Donald Trump is more favorable for altcoins than for Bitcoin.
The report says that Bitcoin's (BTC.D) dominance – a metric used to measure the proportion of the total crypto market cap that BTC commands – is expected to fall as low as 45% from its current level his
The following weekly chart shows the steady rise of BTC.D since September 2022, rising from a low of about 39% to a peak of 61%. However, recent price action indicates that a lower high has been formed, indicating a possible sharp decline to around 45%.
DeFi activity to go back in 2025
The report predicts a further revival of decentralized finance (DeFi) activity within the Ethereum ecosystem in 2025. In particular, the total value locked (TVL) in applications is expected to reach decentralized a new high of $300 billion next year.
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Renewed interest in DeFi could drive altcoin prices higher in 2025. In particular, ETH jump 10% after Trump's election victory in November, as improved sentiment around DeFi regulations boosted market confidence.
In addition, strong inflows have been attracted by spot Ethereum exchange-traded funds (ETF) longer. strengthen the bullish case for ETH going to 2025. At press time, ETH is trading at $3,417, up 3% in the past 24 hours.
Featured image from Unsplash, charts from Tradingview.com
