2025 is expected to be a promising year for the cryptocurrency industry, following significant growth in sectors such as over-the-counter (OTC) and stablecoin transactions in 2024.

OTC Trading Volume Sees Substantial Growth

According to Finery Markets experts, OTC trading volume experienced a staggering 106% year-on-year growth in 2024. This surge can be attributed to rising stablecoin demand and increased crypto-to-crypto transitions, particularly during the second half of 2024 and in Q4.

The Q4 trading activity significantly outpaced all other quarters. Q2, benefiting from the successful BTC ETF launches, was the only other quarter to achieve triple-digit growth at 110%. Q1 and Q3 followed with 80% and 78% growth rates, respectively.

Stablecoin Demand on the Rise

Transactions with stablecoins – tokens pegged to fiat currencies like U.S. dollars – grew 147% year-over-year. In Q4, stablecoins jumped 191% year-over-year due to post-election sentiment.

Tether retained its dominance in the $210 billion stablecoin market, with its market cap peaking at $140 billion in mid-December for the first time ever. Circle’s USD Coin also recovered to a $45 billion market cap, approaching its $56 billion peak before the bank run in early 2023.

2025 Crypto Outlook

Finery Markets agrees with the broader bullish sentiment for 2025, forecasting that institutional adoption of decentralized finance protocols may gain momentum if regulators provide clear guidelines for the sector.

Potential growth areas include:

  • Tokenized real-world assets gaining traction, improving global liquidity and introducing 24/7 trading to traditional markets.
  • Corporations offering crypto-based loans, encouraged by the success of Bitcoin and Ethereum exchange-traded funds.
  • A global shift toward BTC reserves could push countries and organizations to rethink past “zero exposure strategies.”

Spot Bitcoin ETFs on Wall Street now manage over $100 billion in investor assets. Pro-crypto sentiment in the U.S. politics and economy opens an opportunity for re-emergence of a more favorable environment for the digital assets industry.

Challenges Ahead

Finery Markets also pointed to potential challenges in Europe, noting that smaller centralized exchanges could face liquidity issues. The bloc’s new MiCA regulatory framework may push these platforms to adopt broker-dealer models and seek new partnerships to ensure compliance.

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