Will Ethereum Beat Bitcoin in 2025?

Will Ethereum Beat Bitcoin in 2025? Report Projects Ethereum's Price at $8,000

A recent analysis by Steno Research indicates that Ethereum (ETH) is expected to surpass Bitcoin (BTC) in 2025. This prediction is based on past patterns and the expected effects of supportive bitcoin laws in the wake of Republican presidential candidate Donald Trump’s election victory in November.

Is 2025 Going to Be Ethereum's Year?

Ethereum, the second-largest cryptocurrency, has underperformed in terms of price performance, despite the fact that the entire cryptocurrency market reached previously unheard-of heights this year, culminating in an all-time high (ATH) total market worth of $3.9 trillion.

However, according to a forecast by Steno Research, with more institutional investment and favorable legislative changes, Ethereum may eventually reach a new all-time high in 2025. According to the research, ETH may reach at least $8,000 in the coming year.

Ethereum might more than quadruple from its current price of $3,400, while Bitcoin is predicted to reach a new all-time high of $150,000 in 2025. Furthermore, throughout the next 12 months, it is anticipated that the ETH/BTC trading pair would increase from 0.035 to 0.06.

Since September 2022, ETH’s performance vs BTC has been falling, as seen in the weekly chart below. The pair is currently trading close to a critical support level around 0.035, though, and a recovery to the 0.06 level—last observed in February 2024—is anticipated.

The upbeat prediction for Ethereum by Steno Research highlights a possible favorable trend for altcoins in 2025. Steno Research analyst Mads Eberhardt said:

This anticipation stems in part from the claim that altcoins, rather than Bitcoin, will benefit more from Donald Trump’s election as president of the United States.

According to the analysis, Bitcoin dominance (BTC.D), a measure of the percentage of the entire cryptocurrency market cap that BTC commands, is predicted to drop from its current level to as low as 45%.

The weekly chart that follows shows how BTC.D has been steadily increasing since September 2022, going from a low of about 39% to a high of 61%. Recent market movement, however, indicates that a lower high has developed, indicating a possible steep collapse to about 45%.

In 2025, DeFi Activity Will Increase

In addition, the paper projects that in 2025, decentralized financial (DeFi) activities inside Ethereum’s ecosystem would rebound. In particular, it is anticipated that the total value locked (TVL) in decentralized applications would reach a record-breaking $300 billion in the upcoming year.

In 2025, renewed interest in DeFi might propel cryptocurrency values further higher. Notably, after Trump won the election in November, ETH surged 10% as market confidence was bolstered by increased attitude over DeFi rules.

Furthermore, the optimistic argument for Ethereum as it moves into 2025 is reinforced by significant inflows drawn by spot Ethereum exchange-traded funds (ETF). ETH is currently trading at $3,417, up 3% over the previous day.

Frequently Asked Question

What is the basis of the prediction that Ethereum will surpass Bitcoin in 2025?

The prediction is based on Steno Research’s analysis, which highlights factors like institutional investment, favorable legislative changes, and expected growth in decentralized finance (DeFi) activities. The forecast also considers historical market trends and potential impacts from Donald Trump’s election as U.S. president.

What is the projected price for Ethereum in 2025?

According to the analysis, Ethereum could reach a price of $8,000 in 2025, which would more than double its current value of $3,400.

How does Ethereum's projected growth compare to Bitcoin's in 2025?

Bitcoin is predicted to reach a new all-time high of $150,000 in 2025. However, the ETH/BTC trading pair is expected to rise significantly, from its current 0.035 level to 0.06, indicating stronger relative performance for Ethereum.

Why is Ethereum expected to benefit more from Donald Trump's presidency?

Steno Research suggests that altcoins, including Ethereum, will gain more from Trump’s presidency due to potential regulatory changes favoring decentralized finance (DeFi) and broader altcoin adoption.

What role does DeFi play in Ethereum's anticipated success in 2025?

DeFi is expected to be a major growth driver for Ethereum in 2025. The total value locked (TVL) in Ethereum’s decentralized applications could reach a record $300 billion, fueled by increased interest and regulatory clarity around DeFi activities. This resurgence in DeFi is likely to boost Ethereum’s price and market position.