Crypto Industry Set for a Breakout Year: Growing Mainstream Recognition and Regulatory Clarity

The global cryptocurrency market is gearing up for a transformative year in 2025, with increasing mainstream adoption and institutional participation driven by clearer regulatory frameworks and rising valuations.

Investor confidence surged in late 2024 after Bitcoin hit an all-time high of $108,300 on Dec. 17, shortly after Donald Trump’s re-election as U.S. president. Industry experts believe that regulatory clarity from the new administration could propel crypto to new milestones in the coming year, including a rise in institutional engagement and a record-breaking number of global crypto investors.

Regulatory Progress to Drive a New Wave of Crypto Adoption

In 2024, significant regulatory advancements were made in major markets, setting the stage for broader crypto adoption.

Europe’s landmark Markets in Crypto-Assets Regulation (MiCA), the first comprehensive legal framework for digital assets, went into full effect on Dec. 30. This framework provides clear guidelines for crypto service providers and is expected to boost investor confidence across the region.

Meanwhile, Singapore is rapidly establishing itself as a key crypto hub in Asia. The country’s “risk-adjusted” regulatory approach has doubled the number of digital asset licenses issued in 2024. With 1,600 blockchain patents, over 2,400 industry-related jobs, and 81 crypto exchanges, Singapore is punching well above its weight for a nation with fewer than six million residents.

These regulatory efforts will likely encourage both retail and institutional investors to enter the crypto market, says Jonathan Levin, CEO of blockchain analytics firm Chainalysis.

“We anticipate increased adoption from institutional and retail investors in 2025, as these regulations bring much-needed clarity,” Levin added. He added that regulatory improvements would enhance trust, improve market integrity, and strengthen consumer protections, making the crypto space more attractive to a wider audience.

Levin predicts that the combination of regulatory clarity and market growth will push the number of daily crypto users to a new all-time high, potentially leading to a surge in institutional crypto products like exchange-traded funds (ETFs).

Crypto Ownership Could Triple in Two Years

As of mid-2024, there were an estimated 560 million crypto holders, accounting for 6.8% of the global population, according to the 2024 Cryptocurrency Ownership Report by Triple-A.

Pavlo Denysiuk, CEO of crypto payments platform Lunu, believes that number could triple within the next two years as adoption continues to accelerate. Speaking at NFT Fest 2024, Denysiuk highlighted the growing use of crypto in payments as a major driver of this growth.

“We’re seeing more adoption across the board, especially in payments,” Denysiuk said. “With regulatory clarity, it becomes easier for businesses and individuals to enter the crypto ecosystem.”

What’s Next for Crypto in 2025?

As regulatory frameworks mature and institutions continue to embrace digital assets, the crypto market is set to achieve new heights in 2025. Stablecoins, cross-border payments, and blockchain-based financial products will likely be in the spotlight, paving the way for even broader use of cryptocurrencies globally.

With the number of crypto holders expected to rise significantly, the industry is on the verge of becoming a mainstream financial force. As Denysiuk notes, “The next two years will see a pivotal shift, moving crypto from a niche investment to a widely accepted financial tool.”