According to a recent report by Steno Research, Ethereum (ETH) is projected to surpass Bitcoin (BTC) in performance by 2025. This forecast is based on historical trends and the expected impact of cryptocurrency regulations following Donald Trump’s presidential victory.
Analysis: Ethereum’s Potential in 2025
Ethereum, despite being the second-largest cryptocurrency, has not shown significant price growth compared to the overall market’s ATH of $3.9 trillion. However, Steno Research’s report indicates that Ethereum could reach a new ATH in 2025, supported by increased institutional investments and positive regulatory developments, potentially reaching $8,000.
While Bitcoin is also expected to hit a new ATH of $150,000, Ethereum’s price is predicted to more than double from its current level of $3,400. Additionally, the ETH/BTC trading pair is forecasted to rise from 0.035 to 0.06 within the next year.
Analyst Mads Eberhardt from Steno Research attributes the optimistic outlook for Ethereum in 2025 to the potential benefits of a Trump presidency on altcoins. The report also predicts a decrease in Bitcoin dominance (BTC.D) from the current level to as low as 45%.
The upcoming year is expected to bring a revival in decentralized finance (DeFi) activity within Ethereum’s ecosystem, with the total value locked (TVL) projected to reach $300 billion. This resurgence in DeFi could contribute to a rise in altcoin prices.