Franklin Templeton’s Outlook on Regulation, AI, and DePIN

The cryptocurrency market had an extraordinary year in 2024. Bitcoin (BTC) led the charge, propelling the industry to nearly $4 trillion in valuation before a market correction. Earlier in the year, Bitcoin hit the long-awaited $100,000 milestone, eventually settling at about $92,700 in the final hours of the year during the mid-London session.

Bitcoin’s price surge and the crypto market’s broader growth were driven by increased mainstream adoption, particularly from institutional giants like MicroStrategy Inc. (NASDAQ: MSTR) and Metaplanet Inc. (Tokyo: 3350). A game-changing moment in 2024 was the U.S. approval of spot Bitcoin ETFs, leading to the purchase of Bitcoin worth over $106 billion in just one year.

This development unleashed a wave of institutional interest.

Franklin Templeton’s Prediction for 2025

Franklin Templeton Digital Assets predicts that 2025 will mark a significant shift in the cryptocurrency industry. Instead of speculative trading, the focus is expected to move toward real-world applications, positioning digital assets as a vital part of global finance and operations.

To prepare for this change, Franklin Templeton advises stakeholders to monitor three key areas:

1. Regulatory Changes: Keeping up with evolving laws and compliance requirements.
2. Institutional Moves: Watching how major players adapt and invest.
3. AI-Crypto Integration: Understanding the synergy between blockchain and artificial intelligence.

Why Trump’s Re-election Matters

The re-election of Donald Trump as U.S. President is anticipated to accelerate cryptocurrency adoption. Franklin Templeton foresees Trump’s policies, coupled with the appointment of Paul Atkins as the new chair of the U.S. Securities and Exchange Commission (SEC), bringing more regulatory clarity. This progress is likely to support the growth of innovative crypto products, including tokenized securities.

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One of the most promising areas in the crypto space is the Decentralized Physical Infrastructure Network (DePIN). Currently valued at around $29 billion, with a daily trading volume averaging $2.18 billion, DePIN exemplifies how decentralized networks can transform industries reliant on physical infrastructure.

With regulatory clarity on the horizon and promising sectors like DePIN emerging, stakeholders have strong reasons to remain optimistic.

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