Asset management giant VanEck predicts a big increase in decentralized finance (DeFi) trading volumes next year.
In a new report detailing forecasts for 2025, VanEck analysts say decentralized exchange volumes (DEX) will represent a fifth of on-site centralized exchange volumes (CEX).
“Despite record high trading volumes on decentralized exchanges (DEX), both in absolute terms and relative to centralized exchanges (CEXs), the total value of decentralized finance (DeFi) (TVL) remains 24% below its peak.
We expect DEX trading volumes to exceed $4 trillion and capture 20% of CEX spot trading volumes by 2025, driven by the proliferation of AI (artificial intelligence)-related tokens and new consumer-facing DApps (decentralized apps) .
Furthermore, the influx of tokenized securities and high-value assets will catalyze the growth of DeFi, creating new liquidity and broader utility. As a result, we expect DeFi TVL to recover to over $200 billion by the end of the year, reflecting rising demand for decentralized financial infrastructure in an evolving digital economy.”
The analysts also predict that the broader crypto bull market will continue until 2025, with a correction starting sometime in the first quarter. Once the correction is over, VanEck has bullish price targets on some of the top crypto assets by market cap.
“We believe the crypto bull market will last until 2025 and reach its first peak in the first quarter. At the peak of the cycle, we expect Bitcoin (BTC) to be around $180,000, while Ethereum (ETH) will trade above $6,000. Other prominent projects, such as Solana (SOL) and Sui (SUI), could exceed $500 and $10, respectively.
After this initial peak, we expect a 30% retracement in BTC, with altcoins facing sharper declines of up to 60% as the market consolidates over the summer. However, a recovery is likely in the fall, with major tokens regaining strength and regaining previous record highs by the end of the year.”
The full VanEck report can be read here.
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