Is Crypto a Good Investment in 2025?

How did the cryptocurrency market perform in 2024?

The cryptocurrency market reached new heights in 2024, with Bitcoin surpassing $100,000 for the first time, supported by the growing popularity of Bitcoin and Ethereum exchange-traded funds (ETFs).

Countries like El Salvador, Hong Kong, and the UAE increased crypto adoption, integrating digital assets into their economies. In the U.S., the Trump administration’s policies favored blockchain development, sparking optimism among investors.

Regulatory clarity emerged globally, with the EU’s MiCA regulations setting transparency and consumer protection standards in crypto services. This strengthened institutional confidence, with companies like BlackRock expanding crypto holdings.

Total market cap and volumes

The cryptocurrency market cap closed the year at around $3.3 trillion, showing significant growth from 2023’s 1.74 trillion, driven by increased trading activity, ETF approvals, and broader institutional participation.

Trading volumes totaled $18.4 trillion, with the top 10 centralized crypto exchanges contributing over $6.5 trillion in spot trading alone.

While the market fell short of 2021’s $26.2 trillion peak, 2024 marked a substantial recovery, with monthly trading averages nearly doubling from 2023’s $650 billion.

Regarding trade interface dominance, Binance led the market, handling 40% of all trades. Its annual trading volume reached $7.7 trillion, averaging $641 billion monthly.

Bitcoin, Ethereum, and Solana

The big three—Bitcoin, Ethereum, and Solana—delivered notable performances in 2024.

Bitcoin closed 2024 at $96,000, a slight decrease from its record-breaking $100,000 high, marking a 280% increase.

This growth was fueled by institutional adoption and the approval of several Bitcoin ETFs, which boosted investor confidence, with a 40% surge in November primarily credited to Republican success in Congress and Donald Trump’s triumph in the presidential race.

Ethereum (ETH) faced a challenging year due to the completion of its transition. It ended the year at $3,164, reflecting a 34% decline from its 2021 all-time high of $4,878.26. Despite this, Ethereum retains the crown as the number one platform for decentralized applications and smart contracts.

The fifth most valuable cryptocurrency, Solana (SOL), rose 117% and closed at $135.08. Blockchain upgrades and growing developer interest pushed Solana to an all-time high of $300 before it settled.

Altcoins

“Altcoins” refer to all cryptocurrencies with explosive growth potential other than Bitcoin, and they have grown significantly in popularity and value. The total market cap of altcoins, excluding the top 10 cryptocurrencies, averaged around $370 billion over the year.

Several of the best altcoins and tokens saw remarkable gains, making waves in the market. Virtuals Protocol, for example, is a launchpad that enables users to create, deploy, and tokenize AI agents. Its value increased by 21,198%, highlighting the kind of growth that also fuels interest in crypto affiliate marketing opportunities tied to emerging projects like this.

Similarly, Pepe, a meme-based token, gained 1,291%, reflecting the growing interest in meme-driven projects.

Other notable altcoins include Gigachad (GIGA) which saw a staggering 91,639.5% increase making it one of the top Solana meme coins, and Newton Project (NEW), which aims to build a new type of community economy—saw a remarkable increase of 28,074.1%.

DeFi

Decentralized finance (DeFi) grew rapidly in 2024.

According to Binance Research, the total value locked (TVL) in DeFi increased by 75.1% year-to-date (YTD) to $94.9 billion, up from $54.2 billion in January.

DeFi protocols offered services like lending, borrowing, staking, and decentralized exchanges (DEXs). As a crypto investment, this category attracted both retail and institutional investors. Interest was also shown in proof-of-stake coins.

DeFi provides financial services without traditional banks. Users have more control over their assets, with transparency at the core of every transaction, making this article an interesting read.

North America led DeFi growth, with the sector expected to reach a market size of $87.09 billion by 2030, according to Statista.

DeFi continues to reshape finance. Still, user penetration is projected at 0.69% by 2025, with a 2.5x growth increase compared to 2023.

Meme Coins

Dogecoin gained 296.72%, and Shiba Inu rose by 100.01%. Yet, Pepe was the standout, surging by 1,570% and becoming the top performer among coins with a market cap of over $5 billion, according to CoinMarketCap.

The memecoin market closed in 2024, valued at over $130 billion. Despite controversies, it continues to attract attention.

Solana and Base led the way in creating and adopting meme coins. Base hosted popular projects like Brett and Goose.run, while Solana saw high activity in new token emissions.

Retail investors also contributed significantly. Viral trends led to the daily creation of 40,000 to 50,000 tokens, spiking to 100,000 during periods of hype.

Unfortunately, the average liquid meme coin survives just 1.3 hours before trading activity slows. Most new coins fail to stay active. Of the 40,000 to 50,000 meme coins launched daily, only 1,000 secure a listing on a major exchange.

Memecoins are highly volatile, with only 5% reaching a market cap above $10 million. Many disappear quickly, reflecting their short lifespan and speculative nature.

These coins closely follow Bitcoin and Ethereum trends, with a 0.87 correlation. This raises the question: is crypto a good investment, even as demand and continuous innovation sustain their presence?

Will the cryptocurrency market continue to grow in 2025? 

The cryptocurrency market could grow in 2025. Growth is likely if regulations become clearer, economic conditions remain stable, and technology advances. These factors could provide a solid foundation for continued expansion.

Yet, challenges remain and it’s tough to pinpoint the best time to buy crypto. Regulatory hurdles, economic downturns, or slow technological progress could halt growth or lead to a market decline.

Volatility will still be a significant factor. Cryptocurrencies are highly sensitive to shifts in market sentiment, news, and global events. Expect unpredictable price changes, no matter the overall trend.

What banks are invested in cryptocurrencies?

2024 also saw some major banks venturing into cryptocurrency, signaling a shift toward digital currencies in traditional finance. 

JPMorgan Chase established a trading desk for institutional clients and launched JPM Coin, a blockchain-based payment system. Goldman Sachs introduced trading services and has invested in USDC, a leading stablecoin.

Bank of America is also researching cryptocurrency and exploring ways to integrate crypto into traditional banking operations. Meanwhile, Morgan Stanley enables wealth management clients to invest in cryptocurrency funds, expanding access to digital assets.

Fidelity Investments provides cryptocurrency investment custody and trading services for institutional clients, further solidifying its presence in the space.

Global banks are also introducing Bitcoin and Ethereum exchange-traded funds (ETFs), such as BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) and Fidelity Ethereum Fund (FETH).

Key crypto events to look out for in 2025

What blockchain sectors are investors focusing on?

Stablecoins have become one of the most significant growth areas for crypto investment. In 2024, their market capitalization reached $193 billion, a 48% increase.

The best stablecoins include USD Coin (USDC), Tether (USDT), and First Digital USD (FDUSD), all of which are 1:1-backed or pegged to the US dollar.

Analysts expect this to grow to $3 trillion in five years. They’ve already processed $27 trillion of transactions in 2024—three times more than in 2023. 

Stablecoins are now used for global payments, offering faster and cheaper options for everyone, from small entrepreneurs to large corporations. Investors see massive potential in this sector as it evolves beyond trading to global commerce and capital flows.

Momentum is building behind RWA tokenization, accelerating the debate on the merits of decentralized versus centralized blockchains. In 2024, tokenized assets grew by 60% to $13.5 billion. This includes real estate, corporate bonds, and even commodities. Tokenizing assets can improve financial transactions and reduce risk. 

Companies are already experimenting with tokenized assets as collateral for loans and derivatives.

Following the success of Bitcoin ETFs, institutional investors are now eyeing crypto ETFs. Approval for spot ETFs in tokens like XRP, SOL, and LTC could push the market even further.

Cryptocurrencies that rallied since January 2025

Several cryptocurrencies have outperformed expectations this year.

SUI, the token powering the Sui blockchain network, recorded a staggering 509% gain, making it one of the year’s best performers. Dogecoin, boosted by Elon Musk’s continued interest, surged 333%, reaching levels unseen since the pandemic.

XRP, Ripple’s token, climbed nearly 304%, benefitting from the company’s growing influence in cross-border payments. Stellar’s native token rose 233%, while Toncoin, Telegram’s blockchain currency, achieved a 155% gain.

Hedera’s token saw a 248% increase, outperforming other notable projects. Shiba Inu rose by 150%, continuing its meme coin momentum, while TRON registered a 155% rise. These surges highlight the diversity of opportunities within the crypto investment scene.

Is it too late to buy and hold cryptocurrencies?

Many blockchain projects are still in development, and some are nearing their final stages. If these projects capture market interest, they could see a price rally as investors see potential value.

Cryptocurrencies are a high-risk investment. The market is volatile, and you might not always be able to sell your holdings quickly. Always do your research (DYOR).

It’s not too late to start investing, especially with a long-term perspective. The more Bitcoin’s value increases, the faster it can grow. For example, you could double your money if Bitcoin reaches $50k and increases to $100k in two years. What if it rises to $400k in four years? You’d have 8x your investment.

Unlike fiat currency, which is printed in endless quantities and loses value, Bitcoin has a fixed supply of 21 million coins. This scarcity and growing adoption mean Bitcoin’s value may keep rising over time.

If you decide to invest, be prepared for short-term volatility but focus on the long term. A four- to five-year horizon could deliver substantial gains, making following proper crypto storage practices even more crucial.

Conclusion: Is crypto a good investment?

Cryptocurrencies could offer strong investment potential in 2025 but remain a high-risk option. Institutional interest continues to grow, with record-breaking capital flows into Bitcoin ETFs and blockchain projects. 

This shows increasing trust in digital assets as part of a diversified portfolio. However, challenges like market volatility and economic uncertainty persist. Emerging trends like AI-powered trading tools and central bank digital currencies (CBDCs) may reshape the market, providing opportunities and risks. 

For 2025, a crypto investment makes sense for those who research thoroughly, diversify, and prepare for market fluctuations. It’s essential to weigh risks and rewards carefully.

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