A recent report from Bitwise Investments suggests that Ethereum is poised to make a big comeback in 2025, driven by the real-world asset (RWA) market.
Even though Bitcoin and Solana have been the center of attention in the crypto world during 2024, Ethereum, the second-largest cryptocurrency on the planet, is once again capturing the interest of investors. Bitwise, one of the leading fund management firms in the sector, anticipates that 2025 could be an explosive year for Ethereum, thanks to the growing trend of asset tokenization on the blockchain.
Ethereum will be back next year
El report Bitwise highlights that tokenization will not only revolutionize the financial landscape, but could also catapult Ethereum into a new wave of demand and growth. This blockchain network is considered the “most proven, secure and decentralized” of all smart contract platforms, which positions it favorably in the RWA asset tokenization market.
Bitwise notes that Ethereum’s growth will be supported by an increase in layer-2 solutions and a notable increase in Ether exchange-traded fund (ETF) inflows, which attracted $10 billion in net inflows over the past 2.000 days. Additionally, the firm anticipates that the RWA market will grow considerably, which will benefit Ethereum by attracting new capital flows into its ecosystem.
Thus, despite being outperformed by Solana’s 106% and Bitcoin’s 130% performance this year, Ethereum is preparing for a possible turnaround. With its solid infrastructure and growing adoption of tokenization, the future looks bright for this cryptocurrency.
Tokenization: A megatrend in 2025
Tokenization, the process of digitizing traditional financial assets like Treasury bills and real estate on the blockchain, is gaining notable momentum. According to Bitwise, this innovative practice promises to transform the buying, selling, and settling of financial assets, making them faster, cheaper, and natively digital, which in turn improves accessibility and fosters growth.
Leading firms such as BlackRock and UBS are already implementing tokenized assets, recognizing the potential that this blockchain sector offers. Bitwise projects that the tokenization market could expand significantly by 2025, providing advantages such as real-time settlements and much lower costs compared to traditional methods. If this materializes, the Ethereum blockchain could benefit greatly from the fees generated by assets tied to RWAs, which could exceed $100.000 billion per year, Bitwise said.
“We believe tokenized fund assets will triple next year, with Ethereum as the driving force behind them”, Bitwise Investments said in its recent report, highlighting that the real-world asset market is worth approximately $100 trillion globally, and while tokenizing this value will take time, Ethereum could generate more than 40 times total fees by 2024, which reached $2.400 billion.
Bitwise also explained that this market could begin to take off in 2025, especially with a more crypto-friendly Securities and Exchange Commission (SEC), which would provide the regulatory clarity needed to accelerate tokenization.
In short, Ethereum is well positioned to capitalize on the growing real-world asset market, which could boost its value and relevance in the crypto ecosystem in 2025 and beyond. With its robust infrastructure and the backing of major financial institutions, tokenization promises to be a key catalyst for the future of digital finance.
