PakGazette – Ethereum is poised for strong performance in 2025, potentially outperforming , according to analysts at Compass Point Research.
In their latest Blockchain and Cryptocurrency newsletter, they highlight the key factors that could drive Bitcoin’s growth over the next year.
Since the recent Trump/Republican elections, both Bitcoin (BTC) and Ethereum (ETH) have seen significant gains, with BTC up around 44% to $100,000 and ETH up 38% to $3,600.
Despite these gains, Compass Point points to the recent 13% year-end drop in BTC, which caused a temporary drop in miner stocks.
However, they expect a “strong upward recovery in hash prices over the next six months,” as Bitcoin prices outpace the network’s hash rate growth.
The report emphasizes Ethereum’s potential to recover in 2025. “We continue to believe that Ethereum (ETH) will have a recovery year in 2025, with opportunities to go long which is currently trading at $0.037 and is down almost 70% to BTC since the merger with PoS in September 2022,” the company said.
Compass Point analysts believe the recovery year will be driven by looser regulations and greater clarity around smart contracts and decentralized computing platforms.
They foresee significant growth in the Ethereum ecosystem, including decentralized finance (DeFi), Layer 2 networks, stablecoins, and staking.
Companies like Coinbase (NASDAQ:) and digital galaxy (TSX:) will benefit from the monetization of Ethereum’s growth.
“We believe that ETH will be one of the main beneficiaries of the relaxation and clarity of regulations that will lead to the integration of decentralized computing platforms and ecosystems of smart contracts such as DeFi, Layer-2 networks, Stablecoin, Stake, etc., which we consider COIN (Buy, $295 PT) and GLXY (Buy, C$33) as beneficiaries of the monetization of Ethereum’s growth would make it more valuable and BTC’s dominance would decrease,” Compass concluded. Point.
