Framework Co-Founder 2025 Outlook: The Federal Reserve will continue cutting rates, and capital will keep flowing into ETH ETFs
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Framework Co-Founder 2025 Outlook: The Federal Reserve will continue cutting rates, and capital will keep flowing into ETH ETFs
The altcoin market is about to enter a sustained altseason.
Navigating Web3 tides with focused insightsAuthor: Vance Spencer
Translation: TechFlow
Macroeconomics:
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Four of the G7 nations—France, Germany, Canada, and possibly the UK rejoining soon—are undergoing government transitions due to budget crises. One of these countries is expected to experience a bond auction failure in 2025. By the end of 2025, most G7 countries will be governed by conservative administrations.
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Trump will establish a new global monetary framework similar to the 1985 Plaza Accord. This framework will drive a gradual but significant depreciation of the U.S. dollar, encouraging manufacturing repatriation to America while channeling liquidity into U.S. markets and high-risk asset classes such as cryptocurrencies.
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Inflation is projected to remain between 2.5% and 3.3%. In response to weakening labor market conditions, the Federal Reserve will substantially cut interest rates.
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Major global armed conflicts are expected to conclude in the first half of 2025, ushering in an era of optimism centered on peace and security.
United States:
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The S&P 500 (SPX) is expected to rise to 7,500 points, with artificial intelligence (AI) finally delivering on its promise and driving economic growth.
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At least one major U.S. city—possibly Chicago—will face bankruptcy.
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Decentralized autonomous government entities (DOGE) will operate with exceptional efficiency, saving the federal budget $2–3 trillion and enabling the U.S. to achieve 0% fiscal deficit. This model will be adopted by other G7 nations and U.S. local governments.
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Against the backdrop of a 0% deficit, U.S. interest rates will decline significantly.
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Trump’s approval rating will reach the highest level ever recorded for a U.S. president.
Crypto:
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Inflows into Ethereum (ETH) and Bitcoin ETFs will reach parity in the second half of 2025, with daily inflows hitting $1 billion each, driven largely by the launch of combined ETF products.
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The altcoin market will enter a sustained "alt season," with emerging blockchain ecosystems like Berachain standing out due to high levels of attention and adoption.
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The convergence of gaming and artificial intelligence (AI) will become the largest user-facing vertical in terms of MAUs/DAUs, fueled by AI's transformative impact on gameplay and interactivity.
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Energy DePin protocols, led by Glow and Daylight, will generate fee revenues comparable to blue-chip DeFi projects. These protocols use blockchain technology to optimize energy distribution and trading.
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Memecoins will be segmented into multiple categories—including flash memecoins, AI-driven memecoins, factory-produced memecoins, and large-cap memecoins—leading to increased market fragmentation but continued fierce competition.
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Total fees generated by decentralized finance (DeFi) will exceed $10 billion in 2025, while stablecoin supply is projected to reach $500 billion by year-end.
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Tokenization of assets held by major banks will begin, significantly reducing resource waste within the U.S. financial system and improving efficiency.
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Launches of ETFs for cryptocurrencies beyond Bitcoin and Ethereum will be delayed until 2026.
Culture:
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An increasing number of people will turn toward religious faith or spiritual pursuits, likely as a response to modern societal stress.
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As artificial intelligence (AI) begins automating content creation and programming, top creators on Instagram, TikTok, Twitter, and OnlyFans, along with software developers, will reach the peak of their careers globally.
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Elon Musk will become the world’s first trillionaire, propelled by successful ventures across multiple industries.
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Fetterman will emerge as the clear frontrunner for the Democratic presidential nomination in 2028, setting up a contest against Republican candidate JD Vance.
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