Have you ever heard of the story of Laszlo Haynes? On one lovely Saturday in May 2010, this infamous programmer traded 10,000 bitcoins for two large pizzas, and this went down in history as the first known real-world Bitcoin transaction. One bitcoin was only worth $41 back then, but now that same transaction would be worth over 1.5 billion Australian dollars. That’s how much growth the crypto industry has seen, and it is still growing.
In fact, the total global crypto market cap was valued at over $3 trillion by the end of last year, which was a big increase from 2023. As people have gotten more access to knowledge about crypto, it has become easier for them to embrace it. Like in Australia, more investors are making better crypto decisions because they now understand how to predict the changes in XRP price AUD based on market demand, global trends, and so much more. As the markets continue to fluctuate, let’s take a look at whether crypto will continue its overall upward trend or potentially slow down a bit this year.
Why crypto is still going strong
Higher adoption rates
You can tell that crypto is no longer just for the tech-savvy guys or blockchain enthusiasts. Discussions about digital assets and market trends are becoming more common everywhere, including convenience stores or even salons. This is because more people have now accepted crypto as a legitimate investment option, just like stocks and real estate.
Actually, big financial institutions such as BlackRock (NYSE:BLK), Fidelity and more have launched crypto investment products like Bitcoin ETFs to make it easier for investors to gain crypto exposure. Banks like ANZ and ING have also integrated crypto services in order to allow their customers to make crypto transactions smoothly. Such friendly systems might be why more Aussies want to invest in digital assets, with 60% of them saying they are familiar with how cryptocurrencies work.
More countries are also taking crypto more seriously by setting clearer crypto regulations in order to create a safer and more controlled crypto space for investors. Take the UAE, for example, which has managed to create a crypto-friendly environment. And El Salvador? Imagine that they were the first country to make Bitcoin legal money. With more transparent regulations, more businesses are accepting crypto as payment for our day-to-day life activities.
Blockchain innovation
Blockchain technology is literally the foundation of the crypto industry, and as the tech advances, so does the industry. Its decentralized nature is what makes the crypto transactions secure and transparent. Thanks to it, decentralized finance (DeFi), whose revenue is expected to reach US$ 376.9 million this year, was born.
DeFi basically offers traditional finance services like lending and borrowing without needing a middleman. This has made it possible for you to make crypto transactions directly through a crypto platform without having to go through a bank.
Through blockchain, we also have NFTs that allow you to buy, sell and trade unique digital assets on the blockchain. This has helped push the crypto market forward value-wise by influencing the demand for digital currencies. Just think about it – as more people regularly buy and sell NFTs, the number of cryptocurrencies being used is going up because that is what they are using to pay for the NFTs. In fact, by March 2024, OpenSea had over 1 million active buyers and sellers of NFTs on the platform.
Better tools
Today, we have a lot of apps and websites that have made crypto quite accessible. Thanks to tech, the platforms are equipped with tools that can help any investor, from beginners to more experienced ones, to understand what goes on in the market and make smarter moves.
And it seems to be working because more people are continually joining the crypto space. As a matter of fact, over one million Bitcoin wallets are holding more than one BTC presently.
A few challenges
There is no denying the fact that crypto has really grown over the years, but the hurdles cannot also be ignored. Have you ever come across the phrase, ‘money has wings.’ It seems as though crypto took that quite literally because of its high volatility, where assets can soar or plummet with little warning.
The factors that affect crypto prices are very unpredictable, thus making it both a thrilling and risky investment. And that is why stable coins are rising because they offer crypto benefits but with reduced volatility.
Regulation is another hurdle that, unfortunately, acts as a double sword. While other countries are streamlining their regulatory framework to make themselves crypto-friendly environments, others are tightening their restrictions to ensure nothing crypto infiltrates their traditional financial systems. With extremely strict regulations or even bans in some cases, the momentum of crypto could possibly slow down.
Matters of security cannot be ignored. Sadly, crypto platforms have become a major target for cybercriminals because of their value, losing about $2.2 billion to hacks in 2024 alone. Platforms are aware of this and are really beefing up their security systems to protect their customers.
Many innovations and tech have truly sustained the crypto industry’s growth. Whether or not it continues to expand in 2025 will depend on how well it navigates the present challenges and the ever-changing market.