Ethereum Expected to Outperform Bitcoin with $8,000 Price in 2025
Steno Research reports that Ethereum (ETH) is expected to outperform Bitcoin (BTC) in 2025, influenced by historical trends and favorable cryptocurrency regulations anticipated after Donald Trump's potential presidential victory in November.
Will 2025 Be The Year Of Ethereum?
Despite the cryptocurrency market reaching an all-time high (ATH) of $3.9 trillion, Ethereum has not performed as well in price terms. Steno Research indicates that ETH could reach a new ATH in 2025, potentially climbing to at least $8,000 due to increased institutional investments and supportive regulations. In comparison, Bitcoin is projected to hit an ATH of $150,000, with Ethereum's price expected to more than double from its current level of $3,400. The ETH/BTC trading pair is predicted to rise from 0.035 to 0.06 within the next year.
The weekly chart below shows ETH's declining performance against BTC since September 2022, currently near a support level at 0.035, with expectations for a rebound to 0.06, last seen in February 2024.
Mads Eberhardt of Steno Research notes that Trump's presidency may favor altcoins over Bitcoin. The report also predicts Bitcoin dominance (BTC.D) will decrease from around 61% to approximately 45%. The following chart illustrates BTC.D's uptrend since September 2022 but recent activity suggests a potential decline.
DeFi Activity To Rebound In 2025
The report forecasts a resurgence in decentralized finance (DeFi) activity within Ethereum’s ecosystem, predicting total value locked (TVL) in decentralized applications to reach $300 billion in 2025. Renewed interest in DeFi is expected to drive higher altcoin prices. Following Trump's election victory, ETH experienced a 10% increase as market sentiment improved regarding DeFi regulations.
Additionally, strong inflows from spot Ethereum exchange-traded funds (ETFs) further bolster the bullish outlook for ETH heading into 2025. Currently, ETH is trading at $3,417, reflecting a 3% increase in the past 24 hours.
