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Ethereum To Outperform Bitcoin In 2025? Report Predicts $8,000 ETH Price

According to a recent report by Steno Research, Ethereum (ETH) is poised to outperform Bitcoin (BTC) in 2025. This outlook is attributed to historical trends and the anticipated impact of favorable cryptocurrency regulations following Republican presidential candidate Donald Trump’s victory in the November election.

Will 2025 Be The Year Of Ethereum?

While the overall cryptocurrency market surged to unprecedented heights this year – reaching an all-time high (ATH) total market cap of $3.9 trillion – Ethereum, the second-largest cryptocurrency, has lagged behind in terms of price performance.

However, Steno Research’s report suggests Ethereum could finally achieve a new ATH in 2025, driven by increased institutional investment and supportive regulatory developments. The report predicts that ETH could climb to at least $8,000 in the upcoming year.

Bitcoin is also expected to hit a new ATH of $150,000 in 2025, but Ethereum may more than double from its current price of $3,400. Additionally, the ETH/BTC trading pair is forecasted to rise from 0.035 to 0.06 within the next 12 months.

The weekly chart below illustrates ETH’s declining performance against BTC since September 2022. However, the pair is now hovering near a crucial support level at 0.035, with expectations of a rebound to the 0.06 level, which was last seen in February 2024.

Steno Research’s optimistic forecast for Ethereum underscores a potential bullish momentum for altcoins in 2025. Mads Eberhardt, an analyst at Steno Research, stated:

This expectation is partly based on the argument that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin.

The report adds that Bitcoin dominance (BTC.D) – a metric used to gauge the proportion of the total crypto market cap commanded by BTC – is expected to tumble to as low as 45% from its current level. 

The following weekly chart demonstrates BTC.D’s sustained uptrend since September 2022, rising from a low of around 39% to a peak of 61%. However, recent price action suggests a lower high has been formed, signaling a potential sharp decline to around 45%.

DeFi Activity To Rebound In 2025

The report further predicts a resurgence in decentralized finance (DeFi) activity within Ethereum’s ecosystem in 2025. Specifically, the total value locked (TVL) in decentralized applications is expected to hit a new high of $300 billion next year.

Renewed interest in DeFi could further drive higher altcoin prices in 2025. Notably, ETH jumped 10% following Trump’s November election victory, as improved sentiment surrounding DeFi regulations boosted market confidence.

In addition, strong inflows attracted by spot Ethereum exchange-traded funds (ETF) further strengthen the bullish case for ETH heading into 2025. At press time, ETH trades at $3,417, up 3% in the past 24 hours.

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