Why The 2025 Crypto Bull Run Will Change Everything We Know!

"The drop in Bitcoin dominance since July suggests most of the remaining growth would come from altcoins."

"How much capital do you think would flow out of stable coins like USDT and USDC into the mega bank stable coin? We reckon it will be quite a bit, especially if crypto investors start to question the stability of stable coin issuers like Tether and Circle. Not only that, but it's easy to forget just how much more accessible a banker stable coin would be compared to a cryptostable coin. Chances are they would make it possible to mint and redeem their stable coin from directly within millions of bank accounts. Now, for context, only select institutions can mint and redeem USDT at Tether or USDC at Circle. If banks start launching their own stable coins that offer easier issuance and redemption, the supply of these stable coins would eventually outpace USDT and USDC because of the structural difference."

"And this would mean a total crypto market cap of around $9 trillion for the current cycle with a conservative top target of around $6 trillion."

"Now, this pertains to the current cycle, which could peak later this year or early next year if history repeats."

"Logically, there will be more borrowing against ETH and BTC in DeFi. In turn, this means there will be more cryptonnative liquidity being created and flowing into the rest of the crypto market. Notably, most DeFi borrowing is done by borrowing USDC against ETH and BTC. And it is now easier than ever to move this USDC between chains thanks to circles CCTP and other interoperability solutions offered in DeFi."

"And this means that crypto rallies in this cycle are likely to be shorter than 2021 and even be shorter than 2017."

"let's wrap things up by looking at how crypto's market structure could change between now and the next cycle, which will likely occur sometime in 2029."

"It's not far-fetched to assert that traders will take advantage of the inevitable bare market to try and acquire as much of crypto's infrastructure as possible so that they can be the beneficiaries of the next cycle. In fact, with each passing day, it looks more and more likely that this will happen."

"Today, most people trade crypto on exchanges like Binance using stable coins like USDT. In the next cycle, most people could be trading crypto on exchanges like the NASDAQ using a shared stable coin issued by a mega bank. In this sense, you could say that the next cycle will be a digital asset cycle rather than a crypto cycle."

"The bad news is that the change in the crypto market structure could result in most cryptos dying off for good since many of the crypto exchanges that offer them could just disappear. The good news is that dozens, if not hundreds of cryptos will still be around, and there will probably be entirely new asset classes to speculate on, like a tokenized RWA launched by startups that are eerily similar to altcoins."