Stablecoin adoption, ETFs to propel crypto performance in 2025: Citi
According to a recent Citi research report, continued adoption of stablecoins and cryptocurrency exchange-traded funds (ETFs) will drive digital asset performance in 2025. Following President-elect Donald Trump’s victory in the November elections, crypto ETF inflows and stablecoin usage surged, suggesting a robust crypto ecosystem. Citi emphasized that ETF inflows exert a considerable impact on price movements, attributing approximately 46% of Bitcoin's price variance to these inflows. Additionally, stablecoin market caps rose over $25 billion post-election, highlighting their importance for decentralized finance (DeFi). Onchain activity has also seen growth, with Ethereum network activity increasing by 210% compared to 2023 averages. The report suggests that surging institutional inflows could significantly benefit Bitcoin’s price going forward.
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