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Recent insights from Steno Research indicate that Ethereum (ETH) is on track to outperform Bitcoin (BTC) by the year 2025. This forecast is grounded in historical data and the expected influence of favorable cryptocurrency regulations anticipated following the election of Republican presidential candidate Donald Trump in November.
Will 2025 Be The Year Of Ethereum?
This year, the cryptocurrency market has experienced an unprecedented surge, with the total market cap reaching a remarkable all-time high of $3.9 trillion. Despite this, Ethereum, the second-largest cryptocurrency, has not matched the price performance of its peers.
Ethereum’s Path to a New All-Time High
According to Steno Research’s comprehensive report, Ethereum is poised to reach a new all-time high in 2025. This optimistic projection is fueled by increased institutional investments and favorable regulatory changes. The report projects that ETH could ascend to a minimum of $8,000 in the approaching year.
Bitcoin’s Prospective Growth
Bitcoin is also projected to achieve a new all-time high of $150,000 in 2025. However, Ethereum’s growth potential appears more significant, potentially more than doubling from its present price of $3,400. Additionally, the ETH/BTC trading pair is anticipated to rise from 0.035 to 0.06 within the next twelve months.
The weekly chart highlights Ethereum’s declining trajectory against Bitcoin since September 2022. Nevertheless, the pair is now nearing a critical support level at 0.035, with expectations of a rebound to the 0.06 mark, a level last observed in February 2024.
The Impact of a Trump Presidency on Cryptocurrencies
Steno Research’s optimistic outlook for Ethereum highlights a potential bullish trend for altcoins in 2025. Mads Eberhardt, an analyst at Steno Research, emphasized that Donald Trump’s U.S. presidential victory could be more advantageous for altcoins compared to Bitcoin.
Moreover, the report anticipates a decline in Bitcoin’s market dominance (BTC.D), which measures Bitcoin’s share of the total cryptocurrency market cap. This dominance is expected to slip to approximately 45% from its current level.
The weekly chart illustrates Bitcoin dominance’s steady uptrend since September 2022, rising from a low of around 39% to a peak of 61%. However, recent price actions suggest the formation of a lower high, indicating a potential sharp drop to around 45%.
DeFi Activity Set to Resurge in 2025
The report further predicts a rejuvenation in decentralized finance (DeFi) activity within Ethereum’s ecosystem by 2025. Specifically, the total value locked (TVL) in decentralized applications is projected to soar to a new high of $300 billion next year.
Renewed Interest in DeFi
The revival of interest in DeFi could potentially propel higher altcoin prices in 2025. Notably, ETH surged by 10% following Trump’s November election victory, as improved sentiment surrounding DeFi regulations bolstered market confidence.
Additionally, significant inflows driven by spot Ethereum exchange-traded funds (ETF) fortify the bullish outlook for ETH moving into 2025. As of the latest data, ETH is trading at $3,417, marking a 3% increase in the past 24 hours.
