The 2025 Crypto Prophecies
2025 will be a defining year for crypto, moon or rekted.
While altcoins are gearing up for a breakout, the market will see a local top in early 2025.
Dropping my 6 crypto prophecies in 2025 🧵👇
2025 Predictions
1. The US Will Become Crypto-Friendly
The tides are shifting in the US, and 2025 could mark a major turning point for crypto adoption in the country. Here’s why I believe the US will become more crypto-friendly:
Pro-Crypto Leadership: Donald Trump’s recent pro-crypto stance is evident through his World Liberty DeFi project, which has been acquiring key coins like ETH, AAVE, and LINK.
Key Appointments: David Sacks, a crypto advocate, is now the White House AI & Crypto Czar.
Supportive Congress: ~300 pro-crypto candidates secured seats this year.
Notable Investments: Vice President-Elect JD Vance owns up to $500k in Bitcoin.
These developments could make the US a haven for crypto projects and innovation in the years ahead.
2. A Massive Altseason in Q1 or Q2 2025
The signs of a coming altseason are clear. While BTC dominance remains close to annual highs, every previous bull cycle has seen a significant drop in dominance before altcoins surged.
Predicted Hot Sectors:
AI-powered crypto projects
Real-world assets (RWAs)
Memecoins
Select utility tokens
The next few months could be a golden opportunity for altcoin holders as capital flows diversify.
3. Hyperliquid to Break into the Top 6 L1 Ecosystems
Hyperliquid has made waves in 2024, and it’s poised for an even bigger year ahead. Key milestones from this year include:
$15 billion 24-hour trading volume on its perpetual DEX.
HYPE token reaching $35 billion FDV without centralized exchange listings.
A $10 billion peak valuation for its airdrop rewards.
The major catalyst for 2025 is the launch of HyperEVM L1, a high-throughput, EVM-compatible blockchain. Already, teams like Solv Protocol, Ethena, and Anzean Finance have announced plans to launch on it. Expect significant momentum once HyperEVM L1 goes live in Q1.
4. Bitcoin on National Reserves
Could a country follow El Salvador’s lead in 2025? Signs point to yes. Several nations, including the US, Russia, Poland, and Brazil, have hinted at adding Bitcoin to their reserves:
U.S. Senator Cynthia Lummis proposed acquiring 1M BTC as a strategic reserve over the next five years.
It seems likely that at least one major country will announce a formal BTC reserve next year, further legitimizing Bitcoin as a global asset.
5. Bitcoin’s Cycle Top in 2025
While we all hope for endless gains, history suggests otherwise. Bitcoin has consistently peaked in the year following its halving. Despite growing institutional adoption, whales who bought BTC at $16k-$20k will eventually look to take profits.
My plan? Gradual selling. Better to lock in gains early than risk being caught on the wrong side of the cycle.
6. The L1 Rotation Trend Returns
In 2021, the L1 rotation narrative brought massive gains as ecosystems like Solana, Luna, and Avalanche took off. The trend is resurfacing, with new blockchains like Berachain and Monad set to launch in 2025.
The resurgence of L1 ecosystems could create opportunities reminiscent of the SoLunAvax rotations of the past.
Narrative Overview
Catalysts for the Dip
FOMC Announcement (Dec 18): A 25bps rate cut, though expected, came with the indication of slowing rate cuts in 2025. This was perceived as a short-term risk-off signal, impacting both equities and crypto markets.
MicroStrategy’s Limited Buy: A $500M BTC purchase early in the week left the market vulnerable later.
BTC dominance surged from 56% to a peak of 60% as altcoins struggled, though the market seems to be finding its footing near $90K support.
$HYPE: A 10x Success Story
HyperLiquid’s $HYPE token has been a standout performer, skyrocketing 10x from launch with minimal drawdown.
FDV Growth: $3B → $35B
Ecosystem Highlights: $PURR surged from $150M to $400M, $HFUN went from $50M to $300M, and $PIP saw notable strength.
Despite some FUD about a potential attack from North Korea, the HyperLiquid ecosystem remains robust and one of the strongest narratives in the market.
AI Agents: The Narrative Stays Hot
AI tokens continue to dominate as one of the strongest market sectors. Key players include:
$VIRTUAL: Climbed from $2B to $3B FDV in just two weeks.
$AI16Z: Touched a $1B market cap.
$GAME: $40M → $250M in two weeks.
$GRIFFAIN: $40M → $400M.
$FAI: $20M → $200M.
Expect more from this space as AI continues to captivate investor attention.
$FARTCOIN Breaks $1B Market Cap
What began as an AI memecoin has turned into a viral sensation:
Massive Growth: From $200M to $1.3B market cap, fueled by a Binance Futures listing.
Media Engagement: The absurdity of its success has generated significant traditional media coverage.
Volatility: After a sharp post-listing selloff to $600M, it rebounded strongly to $850M.
Fartcoin remains a memetic powerhouse.
Trump-Adjacent DeFi Coins
A pocket of strength emerged from Trump-affiliated coins and projects:
$AAVE, $LINK, $ENA: Surged after WorldLibertyFi, Trump’s RWA project, announced holdings (+35%, +90%, and +30%, respectively).
Ethena Collaboration: WorldLibertyFi partnered with Ethena, driving additional bullish momentum.
$SCR (Scroll): Benefitted from its expected exclusive hosting on Scroll Mainnet.
$SUI: Strong Rebound
SUI’s recovery after the December 20 market bottom was swift:
Price Action: $3.5 → $4.9 in less than a day.
Market Context: $4.9 remains a critical resistance level.
FDV Milestone: Nearly $50B, positioning it just behind Solana.
The SUI/SOL ratio has surged +525% since summer, though some mean reversion could be expected as SOL seeks a rebound.
Altcoin Market Highlights
The broader altcoin market has seen a mix of pumps and retracements:
$MOCA: Binance Futures listing drove a 4x price surge in 15 minutes, followed by a -70% retracement and recovery.
$USUAL: A new CEX token tied to USD0 stablecoin, launched December 18, and quickly 2x’d post-listing.
$PENGU: Pudgy Penguins airdropped $PENGU to holders, starting at $5B FDV before stabilizing around $3B.
$UXLINK: Popular among Korean traders, it has seen sharp +140% growth in 10 days but exhibits volatile, inorganic price action.
$LOFI: A Sui-based memecoin, $40M → $240M mcap, though with signs of inorganic action akin to $BRETT.