In a recent report by Galaxy Research, Mike Novogratz’s Galaxy has predicted that the price of Ethereum (ETH) will soar above $5,500 by the year 2025. This bullish outlook is fueled by expectations of a friendlier regulatory environment for the decentralized finance (DeFi) sector. With traditional capital markets likely to experiment with public blockchains within regulatory sandboxes, Ethereum is poised to benefit from increased adoption and usage. Additionally, the Ether price typically performs well in the first quarter, and many market participants anticipate this seasonal trend to continue.
During the 2021 bull run, Ethereum outperformed due to the rising popularity of non-fungible tokens (NFTs), and Galaxy predicts that the NFT sector will see a resurgence in the coming year. Furthermore, the DeFi sector is expected to enter what Galaxy terms the “dividend era” in 2025, with on-chain applications distributing more value to users and holders. This shift could have a significant impact on the overall value and utility of Ethereum in the years to come.
While Ethereum is predicted to outperform Bitcoin in 2025, the report also projects a bullish trajectory for the leading cryptocurrency. Galaxy Research anticipates that Bitcoin could reach $185,000 in 2022 and surpass the $150,000 mark in the first half of 2025. The firm attributes this growth to a combination of institutional, corporate, and nation-state adoption, which is expected to drive Bitcoin to new heights by 2025.
Galaxy Research also forecasts that the ETH/BTC ratio could potentially reach 0.06 by 2025, with Ethereum significantly outperforming Bitcoin. However, the report suggests that prior to this, the ratio might briefly dip below 0.03. With these projections in mind, investors and cryptocurrency enthusiasts are keeping a close eye on developments within the DeFi and NFT sectors, as well as the broader regulatory landscape, to gauge the potential impact on the price and performance of Ethereum and Bitcoin in the coming years.
