Watch: Regulation, rise of meme coins as key crypto narratives in the next two years
In December 2024, Bitcoin, the world’s cryptocurrency, hit the much-anticipated threshold of $100,000. BTC’s price now sits below the $100,000 mark. But for Steno Research, 2025 is yet to be a landmark year for cryptocurrencies, forecasting Bitcoin and Ether to reach record highs of over $150,000 and $8,000, respectively.
Regulation, rise of meme coins as key crypto narratives in the next two years. (Source: 8457.me)
According to the research note, this optimistic outlook is attributed to a favourable regulatory environment, a supportive macroeconomic landscape with declining interest rates and increased liquidity, and the historically strong performance following Bitcoin halvings. The research note also highlights growing confidence in an imminent altcoin season, signalling broader market opportunities.
Francisco Javier Fernandez de la Fuente, co-founder and head of research at Thebit Research, forecasted a meme coin cycle as a key trend for 2025. He described the rise of meme coins as a reaction to the high valuations of DeFi tokens, which often undergo price discovery in private markets.
“What people want is to have fun and bet on small assets with a lot of upside,” he said during a panel discussion. Fernandez also acknowledged the casino-like allure of meme coins, contrasting them with DeFi and stablecoins, which he identified as the crypto market’s only sectors with a “real and fundamental product-market fit.”
Regulation’s growing influence
Albert Feng, COO of ZBX Crypto Exchange, highlighted during the discussion the increasing role of regulation in shaping the industry. He pointed to frameworks like the EU’s regulation, which aim to bring systematic oversight to the rapidly evolving crypto space.
“From a regulated exchange perspective, it’s our responsibility to assist Web 2 and Web 2.5 entities in entering the Web 3 world in a compliant manner,” Feng stated. He also emphasised the importance of bridging gaps between decentralised innovation and regulatory frameworks to ensure the crypto market’s sustainable growth.
According to its website, MICA establishes uniform market rules across the EU for crypto-assets not currently regulated by existing financial services legislation. It introduces key provisions for issuers and traders of crypto-assets, including asset-reference tokens and e-money tokens, focusing on transparency, disclosure, authorisation, and transaction supervision.
The role of meme coins in the market
Despite their risks, meme coins continue to capture market attention, with assets like Dogecoin experiencing explosive growth. During the same panel, Torben Friis, Managing Director of Match Liquidity DMCC highlighted Dogecoin’s recent 150 percent surge amid rumours of its potential adoption as a payment method in the United States.
However, Fernandez was sceptical about meme coins transitioning into practical use cases. “They’ll remain tools for speculation and fun. People find DeFi boring, and stocks are similar. Meme coins are exciting and promise quick wealth,” he said, adding that they could even divert capital from traditional markets like equities and gambling.
Balancing innovation and compliance
Feng concluded by underscoring the need for harmony between regulatory requirements and market innovation. “As long as a project has a valid community, ensures longevity, and complies with AML and other regulations, we’re eager to explore it within our offerings,” he said.
As crypto enters 2025, the industry stands at a crossroads. Meme coins highlight the market’s appetite for speculative and entertaining assets, while DeFi and stablecoins offer enduring utility. Meanwhile, regulatory bodies face the challenge of keeping pace with an industry defined by rapid innovation. The evolving balance between fun, risk, and compliance will undoubtedly shape the narrative for years to come.
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