Coinbase Analysts Say We Have Great Hope for 2025, Showcased an Altcoin as a Star!

As Coinbase analysts approach the end of 2024, citing positive economic and political changes crypto para They are optimistic about the market.

Key factors include the recent US election results and the impact of increased memecoin activity on the Solana blockchain.

“Overall, we expect a supportive macro environment for crypto performance over the next 1-2 quarters, driven by encouraging US monetary policy and stronger US economic conditions,” said Coinbase Head of Institutional Research David Duong and Analyst David Han.

A major factor contributing to this outlook is the election of Donald Trump as the next US president. The Trump administration, which will take office on January 20, 2025, is expected to prioritize policies that can encourage economic expansion and risk-taking, potentially benefiting the crypto market. Increased deficit spending and more money supply could lead to increased demand for digital assets as investors seek returns in riskier markets, according to Coinbase analysts.

Crypto-friendly candidates have made gains across the political spectrum; The US House won by 263 pro-crypto candidates compared to 118 anti-crypto candidates, and the Senate won 18 pro-crypto members against 12. This shift has raised expectations for a more favorable regulatory environment for cryptocurrencies in the US next year.

In addition to political developments, analysts also noted Solana’s growing role as a “memecoin hub.” Over the past year, Solana has seen significant growth in memecoin trading, making on-chain trading protocols the third most profitable crypto sector after stablecoins and layer-1 networks. The success of pump.fun, a leading memecoin launch platform on Solana, has driven activity on the network, with over three million memecoins launched on the site to date.

“Memecoins have been the best-performing crypto sector by total market cap growth this year,” Coinbase analysts said, noting that most of that growth occurred in Solana. Network fees from Memecoin transactions currently account for more than 82% of Solana’s non-voting transaction fees.

Coinbase analysts expect a strong start for crypto markets in 2025, with the influence of these factors; According to analysts, favorable policies, economic conditions and network growth on blockchains such as Solana contribute to a promising environment for digital assets.

*This is not investment advice.