As the global financial market undergoes increasing changes, the cryptocurrency market has also reached a critical turning point. The report of "ARK Invest Big Ideas 2025" reveals the latest trends in three major areas: Bitcoin, Stablecoins, and Scaling Blockchains, indicating that cryptocurrency technology is redefining the financial system and accelerating the way global capital flows. From the growth in institutional adoption of Bitcoin, to the trading volume of Stablecoins surpassing traditional payment giants, to the advancements in blockchain technology, these transformations will drive the development of the digital economy forward.
Table of Contents
Bit: Institutional adoption accelerates, at least 30 million by 2030
ETF boom helps push Bit into the mainstream investment market
In 2024, the Bit market experienced a historic breakthrough. According to the ARK Invest report, the launch of the Bit spot ETF became an important event in the financial market. The Bit ETF attracted over $4 billion in inflows on its first trading day, setting the most successful ETF launch record in history, far exceeding the $1.2 billion inflows of the gold ETF in its first month in 2004.
This ETF boom has driven Bit prices to new highs and increased its acceptance among institutional investors. ARK predicts that as Bit's role as a fiat reserve asset is established, its market value will further increase.
Bitcoin's Halving and Long-term Value Growth
In 2024, Bitcoin will experience its fourth "halving" event, reducing its annual inflation rate to 0.9%, lower than the 1.8% long-term supply growth rate of gold. This supply mechanism highlights Bitcoin's value as "digital gold" and further attracts institutional capital inflows.
Additionally, Bitcoin's annual volatility has reached a historical low, while its risk-adjusted returns still outperform most traditional assets. According to ARK's analysis, the long-term holding ratio of Bitcoin has reached a new high, with the supply of Bitcoin untouched for over three years reaching a historical peak, indicating the market's confidence in its long-term value.
Active Bitcoin Transactions, Network Security at an All-time High
Bitcoin's daily trading volume has repeatedly reached new highs, particularly with the launch of the "Runes Protocol" driving an increase in on-chain transaction volume. Furthermore, despite the halving leading to a 50% reduction in miner revenue, Bitcoin's network hashrate (Hash Rate) has reached a historical high, indicating miners' long-term confidence in Bitcoin.
At Least $300,000 by 2030, $1.5 Million in Bull Market
ARK has divided Bitcoin into: bear, base, and bull market scenarios, to predict Bitcoin's price in 2030. Even in the worst-case scenario, it will reach $300,000:
Stablecoins: Surpassing Traditional Payment Systems, a New Force in Global Finance
Transaction Volume Exceeding Visa and Mastercard
ARK's report indicates that the market development momentum of stablecoins is remarkable. In 2024, the annual transaction volume of stablecoins will reach $15.6 trillion, far exceeding Visa ($13.1 trillion) and Mastercard ($7.8 trillion).
It is worth noting that although the number of stablecoin transactions only accounts for 0.41% and 0.72% of Visa and Mastercard's transaction volumes, respectively, the average value per transaction is higher, indicating that enterprises and institutions are increasingly relying on stablecoins for large-scale payments and capital flows.
Stablecoin Supply Rebounds, On-chain Activity Reaches New Highs
Although the total market capitalization of stablecoins shrank in 2023 due to a market downturn, the market rebounded rapidly in 2024, with the supply reaching $203 billion, accounting for 0.97% of the US M2 money supply. At the same time, the number of active addresses on stablecoin blockchains has surpassed 23 million, reaching a historical high.
Innovative Stablecoins Emerge, Represented by Ethena Labs
In addition to the two major traditional stablecoins, USDT (Tether) and USDC (Circle), new stablecoin projects are also rapidly emerging. Among them, Ethena Labs has accumulated $6 billion in locked value within 12 months, becoming one of the fastest-growing non-fiat-collateralized stablecoins. This project provides yields of up to 20%-30% through a "Delta-neutral strategy," demonstrating the market potential of innovative stablecoins.
Transformation of the International Monetary Landscape, Stablecoins Accelerating "Dollarization"
The report also points out that while some countries are reducing their dependence on the US dollar, the digital asset sector is experiencing a trend of "dollarization." Currently, US dollar-pegged stablecoins occupy more than 98% of the market, followed by gold-pegged (around 1%) and euro-pegged (around 0.5%) stablecoins. ARK predicts that more Asian currency-pegged stablecoins will emerge in the future, further driving the transformation of the global financial system.
Stablecoins to Reach 0.9% of Fiat Money Supply
ARK believes that the issuance of stablecoins will continue to increase, reaching 0.17% of the global M2 by 2030.
Blockchain Scaling Technologies: Driving Widespread Adoption of Crypto Applications
Layer 2 Solutions Becoming Mainstream
Blockchain scaling technologies are key to the development of the crypto industry. ARK's report emphasizes that Layer 2 solutions (such as Optimistic Rollups and ZK-Rollups) are rapidly maturing. The Layer 2 networks of Ethereum are currently processing more transactions than the mainnet, demonstrating the critical role of scaling solutions in reducing transaction costs and increasing speed.
Modular Blockchains and Cross-chain Technologies Emerging
The traditional single-blockchain architecture is no longer able to meet future demands, and therefore modular blockchains and cross-chain technologies are gradually becoming the focus of the market. ARK points out that modular blockchain solutions such as Celestia and EigenLayer provide more flexible scaling capabilities, while cross-chain protocols like Cosmos and Polkadot are working to break down the barriers between different blockchains and promote broader ecosystem integration.
Solana and Base are Capturing the Market
Among the 39,139 new crypto developers added in 2024, Solana led with 7,625 developers, surpassing the Ethereum mainnet. Base ranked sixth with 4,287 developers, surpassing Arbitrum and Starknet, becoming the leading Layer 2 solution on Ethereum.
Crypto Market Entering a New Era
The development of Bitcoin, stablecoins, and blockchain scaling technologies indicates that the crypto market is transitioning from speculative assets to becoming a core component of the global financial system. With the increase in institutional adoption, stablecoins becoming a mainstream payment method, and continuous advancements in blockchain technology, 2025 will be a critical year for the explosive growth of the crypto industry. Investors and enterprises should closely monitor these trends to seize the new opportunities in the digital economy.
Risk Disclaimer
Cryptocurrency investments carry a high degree of risk, and their prices may fluctuate dramatically. You may lose your entire principal. Please carefully evaluate the risks.
