The cryptocurrency market is riding a wave of bullish sentiment as Bitcoin’s price skyrockets, driven by the recent election of President-elect Donald Trump. Bitcoin, which often leads market rallies, surged from $69,000 on November 6 to breach the $100,000 milestone by early December.
According to Standard Chartered, institutional investors have been pivotal in fueling Bitcoin’s growth in 2024. In an early December report, the bank projected that Bitcoin’s price could double, reaching $200,000 by the end of 2025.
Despite this momentum, market observers note a shift in investor focus. Bitcoin’s market capitalisation has declined slightly as altcoins—cryptocurrencies other than Bitcoin—gain traction. Ahmed, a spokesperson for Gemini, highlighted the rising demand for stablecoins, whose combined market cap has climbed to $190 billion.
Stablecoins: A Growing Force
Stablecoins, digital currencies pegged to assets like fiat money or commodities, are driving adoption across the cryptocurrency sector. Triple-A’s Barbier revealed that over 560 million people worldwide are now digital currency users, with stablecoins playing a central role in this growth.
“Stablecoins are increasingly being used for payments and remittances due to their speed, cost-effectiveness, and transparency,” said Barbier. The total volume of stablecoin transactions reached an impressive $5.2 trillion in 2024, up from $3.7 trillion the previous year, according to Visa’s analysis.
Singapore has emerged as a key player in the stablecoin ecosystem. In 2024, the Monetary Authority of Singapore approved two issuers—StraitsX and Paxos—to launch stablecoins in the country. Lim, from DDEx, noted that this regulatory support is expected to catalyze the development of a robust stablecoin infrastructure in Singapore in the years to come.
Looking Ahead: Adoption and Innovation
The growing acceptance of stablecoins as legitimate cross-border payment solutions by major players like Visa, Mastercard, and Pay has further solidified their position in the digital financial landscape. As adoption continues to expand, stablecoins are set to dominate the payments ecosystem in 2025.
“Stablecoins are proving their worth in the financial system by providing practical solutions that meet the needs of users,” said Barbier.
With Bitcoin’s resurgence and the rise of altcoins and stablecoins, the cryptocurrency market appears poised for another landmark year. As innovation continues to shape the sector, the optimism surrounding digital assets shows no signs of slowing.
