TechFlow news, December 27 — According to Cointelegraph, a latest research report from Citigroup indicates that continued adoption of stablecoins and cryptocurrency ETFs will be the primary drivers of digital asset performance in 2025. The report highlights that after Donald Trump won the U.S. presidential election in November, three key cryptocurrency market indicators—ETF fund inflows, on-chain activity, and stablecoin usage—all saw significant increases, a trend expected to continue into the new year.
Citigroup analysis shows that in 2024, Bitcoin ETF fund inflows had a notable impact on BTC prices, with every $1 billion in inflows bringing an average price increase of approximately 4.7%, explaining around 46% of Bitcoin's price volatility. Regarding stablecoins, the market capitalization of the three major stablecoins (USDT, USDC, and DAI) grew significantly following the election, increasing by more than $25 billion collectively. Citigroup believes this trend is particularly beneficial for the DeFi ecosystem, as stablecoins serve as a critical gateway to decentralized finance.
