Asset management giant VanEck is predicting a large surge in decentralized finance (DeFi) trading volumes next year.
In a new report detailing its predictions for 2025, VanEck analysts say decentralized exchange (DEX) volumes will capture a fifth of centralized exchange (CEX) spot trading volumes.
“Despite record-high decentralized exchange (DEX) trading volumes, both in absolute terms and relative to centralized exchanges (CEXs), decentralized finance (DeFi) total value locked (TVL) remains 24% below its peak.
We anticipate that DEX trading volumes will surpass $4 trillion in 2025, capturing 20% of CEX spot trading volumes, driven by the proliferation of AI (artificial intelligence)-related tokens and new consumer-facing DApps (decentralized apps).
Additionally, the influx of tokenized securities and high-value assets will catalyze DeFi growth, providing fresh liquidity and broader utility. As a result, we project DeFi TVL to rebound to over $200 billion by year-end, reflecting the rising demand for decentralized financial infrastructure in an evolving digital economy.”
The analysts also forecast that the broader crypto bull market will persist through 2025, with a correction beginning sometime in the first quarter. Once the correction is finished, VanEck has bullish price targets for some of the top crypto assets by market cap.
“We believe the crypto bull market will persist through 2025, reaching its first peak in the first quarter. At the cycle’s apex, we project Bitcoin (BTC) to be valued at around $180,000, with Ethereum (ETH) trading above $6,000. Other prominent projects, such as Solana (SOL) and Sui (SUI), could exceed $500 and $10, respectively.
Following this first peak, we anticipate a 30% retracement in BTC, with altcoins facing sharper declines of up to 60% as the market consolidates during the summer. However, a recovery is likely in the fall, with major tokens regaining momentum and reclaiming previous all-time highs by the end of the year.”
The full VanEck report can be read here.
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The post VanEck Predicts $4,000,000,000,000 Explosion in DeFi Volumes for 2025 – Here’s Why appeared first on The Daily Hodl.