The crypto market has come a long way since Bitcoin first made headlines over a decade ago. Once the domain of a few tech wizards, it is now attracting everyday investors who want to benefit from this digital money revolution.
If you are looking for a long-term investment in this space, you need to know and understand what the future of crypto in the next 5 years could look like. To do this, you must understand past, ongoing, and expected developments in the crypto market.
In this guide, we will thoroughly analyze the crypto environment, including exploring its future in the next five years, to help you get the most out of your crypto investments.
What have been the biggest crypto market developments so far?
Before we delve into the future of crypto in the next 5 years, it is crucial to understand the biggest crypto market developments so far.
The NFT boom
NFTs (non-fungible tokens) are a relatively new kind of digital asset offering innovative ownership and distribution models. Cryptocurrencies are fungible tokens, but NFTs are non-fungible, which means each unit is entirely unique from one another.
NFTs use blockchain networks like Ethereum to enable users to view the ownership of a particular digital asset all the way back to its origin. NFTs gained popularity in 2017 following the launch of CryptoKitties, an Ethereum-based decentralized application (dApp) that allows users to breed and collect digital cats.
In 2021, however, NFTs really took off due to a significant surge in interest from collectors and artists alike. At the time, more than $40 billion was reportedly spent on blockchain-recorded digital assets and artwork, making them as valuable as the global art market itself.
Next year, however, the NFT market collapsed following the crash of the wider cryptocurrency sector. The NFT market now seems to be solidifying as users slowly realize the true potential of this digital asset beyond just speculation and quick flips.
The rise of altcoins and meme coins
Altcoins, or alternative coins, refer to any cryptocurrency that’s not Bitcoin. On the other hand, meme coins are a type of altcoin that are usually created for fun and named after internet memes.
Bitcoin has largely dominated the crypto market since the start of the crypto frenzy. However, altcoins and meme coins are now on the rise, signaling a shift in investor focus. If we look at the total crypto market cap numbers, Bitcoin’s dominance has dipped from an all-time high of 61.33% to 59.57% despite the rise in BTC’s value.
Though altcoins and meme coins are gaining, their overall value is still well below the peak in November 2021, suggesting further upside for altcoins. Ethereum (ETH), Tether USD (USDT), Solana (SOL) and BNB (BNB) are some of the best Bitcoin alternatives, while Dogecoin, Floki, Shiba Inu, and SNEK are a few of the hottest meme coins currently.
If the current surge in Bitcoin stabilizes, which is largely expected, there are very good chances of investors diverting their money into altcoins in search of higher gains, setting the stage for another altcoin rally.
The adoption of web3
Web 2.0 is the current iteration of the Internet and has played a primary role in revolutionizing the global landscape. However, it is dominated by a few major tech companies, raising privacy concerns for users.
Such concerns have accelerated the adoption of Web 3.0, which uses blockchain to give users more control over their data. In addition to decentralization, the next-gen internet has several use cases.
One use case of blockchain for Web3 is Smart Contracts, which allow users to own and control assets online digitally. Smart Contracts ensure quick, easy, and low-cost exchange of digital assets in the form of tokens.
Web3 use cases are not limited to the exchange of assets; rather, they will be useful in supply chain management, digital ID, healthcare, and the insurance sector as well.
Recognizing the immense potential of Web3, investors, venture capitalists, and established companies are making huge investments in the technology. In fact, monthly active crypto developers have more than tripled since 2018, which is in line with the user interest spike in Web3.
Regulatory changes
Regulations surrounding cryptocurrencies have witnessed drastic changes in the past decade or so.
Though some countries have banned cryptocurrencies outright, others are making adjustments to their regulatory frameworks to accommodate them. Increased regulations surrounding cryptocurrencies may limit their scope, but more importantly, they offer needed stability and investor protection.
One of the biggest regulatory changes was the approval of crypto ETFs, including Bitcoin ETFs, by the US Securities and Exchange Commission (SEC). Hong Kong also is making efforts to become a crypto trading hub.
Last year, the European Union (EU) introduced the first-ever comprehensive cryptocurrency regulations, the Markets in Crypto-Assets Regulation (MiCA). Currently, the European Security and Markets Authority is taking public opinion on the regulation.
Bitcoin halving
Bitcoin halving is a crypto event that takes place about every four years. The event reduces the mining block reward by 50%, thereby reducing the Bitcoin supply entering the market. The drop in supply is usually accompanied by an increase in price as halving makes Bitcoin scarcer.
There have been four Bitcoin halving events since 2009 – first in November 2012 (reducing block reward to 25 BTC), second in July 2016 (reducing block reward to 12.5 BTC), third in May 2020 (reducing block reward to 6.25 BTC), and fourth in April this year (reducing block reward to 3.125 BTC).
The next Bitcoin halving event is expected in 2028, when the block reward will reduce to 1.625 BTC. As of May 2024, there were around 19.7 million BTC in circulation, and this means about 1.3 million are left to be released via mining rewards.
The Bitcoin halving event is expected to continue until 2140 (or 29 halvings left as of 2024), when the proposed limit of 21 million BTCs is theoretically reached.
What will the crypto market look like in 5 years?
Now that you have an idea of the current crypto landscape, let’s try to predict its future in the next five years.
Further regulatory developments
Regulatory developments surrounding crypto have come a long way, and as crypto adoption penetrates further, we are likely to witness sea changes in crypto legalities in the next five years. Governments worldwide are very likely to develop comprehensive frameworks to manage digital assets, with the objective of protecting consumers and fostering innovation.
Regulatory clarity will definitely boost the adoption of cryptocurrencies, especially among institutional investors. Still, it may also limit the very features that blockchain is known for, such as privacy and anonymity.
For instance, the US Congress is considering the Digital Asset Market Structure Bill. The bill aims to create specific categories of digital assets with the ultimate objective of coming up with clear regulations and apt regulatory authority for each category.
In addition to specific regulations, governments worldwide will also extend anti-money laundering (AML) regulations to account for decentralized ecosystems. Moreover, we could also see the introduction of global crypto standards in the next five years. Since crypto assets are borderless, domestic regulations alone won’t be sufficient to protect users.
Mass institutional adoption
In recent years, the crypto industry has witnessed a significant adoption among institutional investors, ranging from hedge funds to multinational corporations. Big companies, including Microsoft (NASDAQ:MSFT), AMC, Tesla (NASDAQ:TSLA), AT&T, and PayPal (NASDAQ:PYPL), already use cryptocurrencies for their financial transactions.
This trend is unlikely to slow down; rather, the adoption will accelerate as more businesses recognize the potential of digital assets as a store of value and legitimate investment vehicle.
This mass institutional adoption will be driven by a number of factors, including growing confidence in technology, regulation clarity, enhanced infrastructure, and a potential hedge against inflation.
Many big Wall Street banks are already working with Visa (NYSE:V) and Mastercard (NYSE:MA) to tokenize their asset. Citi analysts estimate the value of such initiatives to grow into a $5 trillion market by 2030. Sovereign wealth funds are also showing interest in digital currencies.
BlackRock (NYSE:BLK) believes asset tokenization is the “next generation for markets.” The investment company is now executing the second stage of its plan—a crypto-based revolution in financial markets—by launching a tokenized private equity fund.
Crypto ETFs
Crypto ETFs, especially Bitcoin ETFs, have gained significant popularity in recent years, and the trend is unlikely to slow down anytime soon. As of August this year, 10 new funds approved by U.S. regulators collected about $52 billion in investments, according to TrackInsight data.
Going forward, more investment is expected to flow into Bitcoin ETFs, considering Morgan Stanley (NYSE:MS) has decided to allow its 15,000-strong network of financial advisers to recommend two of the new Bitcoin ETFs: the Fidelity Wise (LON:WISEa) Origin Bitcoin Fund (NYSE:FBTC) and the iShares Bitcoin Trust (NASDAQ:IBIT).
Retail investors dominate the current investment in crypto ETFs. In the next five years, however, institutional investors are likely to invest heavily in crypto ETFs as digital assets become more stable and gain acceptance from regulatory authorities.
When we talk about crypto ETFs, we mainly refer to Bitcoin ETFs. However, in the next five years, ETFs of other popular cryptocurrencies, especially Ethereum, will likely go mainstream. According to the data from TrackInsight, the assets in the ether group totaled nearly $7 billion just a month after their July 23 launch.
Technological advancements
Crypto is already a technology marvel, and innovation in blockchain technology and its application will further drive up its adoption in the next five years. Potential developments will be seen in many areas, but one area that will really excel is Decentralized Finance (DeFi).
Technological advancements in DeFi will primarily revolutionize three key areas: savings, lending, and borrowing. These developments will mainly benefit developing countries, where traditional banking services are still hard to access.
Another area that will definitely witness significant technological advancements is Central Bank Digital Currencies (CBDCs). It is largely expected that many of the world’s most influential central banks, including the US Federal Reserve, the European Central Bank, and the Bank of England, will come up with CBDCs, which are similar to traditional fiat money but operate on the blockchain.
Layer-2 solutions will also witness drastic tech advancements, especially if Ethereum remains the top choice for the smart contract ecosystem. Better Layer-2 solutions will help address Ethereum’s scalability issues and significantly reduce fees.
Bitcoin in 5 years – Our predictions
Bitcoin has been the past and present of the crypto industry, and will undoubtedly remain the crypto future as well. Thus, for any crypto investor, it is very important to know the future of Bitcoin in the next 5 years.
Bitcoin halving (again)
Bitcoin halving is a big event for crypto investors as it usually results in bull runs. The first three halving events (2012, 2016, and 2020) led to an extended bull run lasting more than a year, and each created a new all-time high.
However, the last halving event, which took place in April 2024, didn’t immediately see the bull run until Donald Trump’s re-election in November. Experts are of the opinion that the bull run could continue next year. Standard Chartered’s Bitcoin forecast of $250,000 for 2025 backs the bull run theory, and if that happens, it would make Bitcoin the most valuable US-listed company.
The next halving event would take place in 2028, and this will likely inspire another rally in Bitcoin’s price. Many analysts expect Bitcoin price to hit $1 million by the time of next halving. For this to happen, the digital asset needs to generate an annual return of 75% by 2028.
A 75% return isn’t out of the question when it comes to Bitcoin. The BTC has generated annualized returns of 230% between 2011 and 2021 and about 150% last year. Moreover, with more money pouring from Bitcoin ETFs, it won’t be a surprise if we witness a super bull rally in the next five years or so.
Technical improvements
Technological improvements and innovations will primarily drive crypto adoption in the next five years. We will likely see Bitcoin’s scalability issues addressed going ahead, making it fit for microtransactions and high-frequency trading.
Additionally, we may also see significant efficiency gains for Ethereum as it transitions to Proof of Stake and subsequent upgrades, such as sharding. Technological improvements, such as projects focusing on zero-knowledge proofs (ZKPs), will further enhance privacy while maintaining transparency.
Technological improvements will also be seen in artificial intelligence (AI) and blockchain integration, leading to further automation of complex processes, such as smart contract execution.
Web3 gaming will also gain widespread popularity. Combining blockchain technology with immersive gameplay, Web3’s play-to-earn (P2E) models will revolutionize gaming by allowing players to earn crypto rewards and easily trade in-game assets.
Interoperability is another area that is likely to see massive technological upgrades in the next five years. The upgrades will allow different blockchains to communicate and share data without requiring centralized intermediaries. Interoperability will also be a key part of Web 3.0, especially in strengthening the DeFi ecosystem.
Bitcoin price prediction 2030
Bitcoin is currently trading at around $95,000, and it is expected to go higher. The world’s most popular crypto is witnessing a bull run—triggered by Trump’s re-election—that was due since the last halving event in April 2024.
Crypto adoption will only increase going ahead, and this could mean more stability for Bitcoin. Ark Invest CEO Cathie Wood, who has been a crypto bull for years, has given several price targets for Bitcoin over the years, including a high of $3.8 million by the year 2030.
Additionally, Wood gave a bear case, base case, and bull case for the year 2030 of $258,500, $682,000, and $1,480,000, respectively. Wood reiterated her price targets in a recent CNBC interview, adding that Ark Invest was early to invest in Bitcoin. She also noted that Ark was the first public asset manager to gain exposure to Bitcoin in 2015 at $250.
Besides Wood, most other analysts are also bullish on Bitcoin, expecting a significant (but less than Wood’s prediction) price hike by 2030.
Other cryptos that could explode before 2030
Bitcoin price has already skyrocketed since it was introduced in 2009, putting it out of the reach of many retail investors. There are, however, a host of other cryptocurrencies that may make you rich. the status of the next Bitcoin. Some of these are detailed below.
Pepe Unchained ($PEPU): A meme coin with real-world applications
Pepe Unchained takes the growing trend of meme coins further by turning it into a Layer-2 blockchain on Ethereum. Inspired by the popular “Pepe the Frog” meme, Pepe Unchained aims to make transactions cheaper and faster by processing them off the main Ethereum chain.
Moreover, Pepe Unchained is not a crypto that you just hold while waiting for its price to increase. The coin has plenty of applications, including staking, NFT minting, and a play-to-earn (P2E) game. Such alignment with trending areas makes Pepe Unchained more attractive to investors looking for a meme coin with real-world applications.
Source: Pepe Unchained
In addition to Pepe Unchained’s business model, its timing to hit the market is another reason why this new coin could witness remarkable growth in the coming years. The global NFT market is estimated to grow from $3 billion in 2022 to over $13.6 billion by 2027.
Such growth in the NFT market and the increasing popularity of P2E games make the field set for Pepe Unchained to thrive. The coin has just wrapped up what was the most successful presale in meme coin history, raising an unprecedented $74 million.
Crypto All Stars ($STARS): Bringing meme coins under one roof
Crypto All Stars is a revolutionary meme coin project that aims to bring popular meme coins, such as PEPE, Dogecoin, Milady, Brett, and more, under one roof.
This new project has introduced a staking platform called the MemeVault, which allows users to stake different meme coins in one place. The MemeVault can also work with different blockchain networks.
Source: Crypto All-Stars
Users earn the project’s native token, $STARS, in return for staking meme coins. Another distinguishing feature is its exclusive staking benefits, such as the 3x rewards for $STARS holders and early access to staking for presale participants.
Crypto All Stars is currently in presale stage and has already raised $7 million. The project is estimated to surpass $10 million before launch later this month. The project is developed on the Ethereum network and uses the ERC-1155 standard to ensure the handling of multiple tokens.
Flockerz (FLOCK): A meme coin with a focus on community involvement
Flockerz is a meme coin unlike most others on the market. The project distinguishes itself by focusing on community involvement using a new Vote-to-Earn decentralized autonomous organization (DAO), which ensures investor participation in shaping the coin’s future.
The new features allow community members to vote on key matters, including marketing plans and goals. Members also earn rewards for community involvement.
Such a feature addresses a common issue with meme projects, where control rests with a small group of developers. Flockerz, on the other hand, breaks this tradition by allocating power to investors.
In addition to community involvement, the project is internally strong as well. Flockerz’s smart contracts have been audited by SolidProof and Coinsult, suggesting the highest level of security among new meme coins.
Flockerz is an early-stage Ethereum-based project that has raised more than $4 million during its presale phase.
Wall Street Pepe (WEPE): A token combining meme with Wall Street utility
Frog-themed crypto tokens are growing popular among investors, with PEPE having massively captured the market’s attention since it launched in 2023, raising over $3.5m in its presale.
Now, a new frog-themed token, Wall Street Pepe, could potentially threaten PEPE. Wall Street Pepe mixes the famous Pepe meme with a Wall Street theme. This, along with WEPE’s unique theme and passive income potential, is catching the attention of investors worldwide.
Unlike most other meme coins, WEPE offers real utility. Token holders get access to pro-level trading insights, signals, strategies, and alpha calls, with an objective to put smaller investors on par with professionals.
Wall Street Pepe also has a VIP group for trading tips from experienced traders. The project even rewards active community members with WEPE tokens for sharing successful tips and joining trading competitions.
Catslap (SLAP): A meme coin with a unique Slap-to-Earn game
Cat-themed meme coins, such as Popcat, have been the rage this year. Now, a new cat-themed token, Catslap, is taking the crypto world by storm. This Ethereum-based meme coin features an aggressive feline that likes to “slap” anything that gets in its way.
Catslap’s community on Telegram and X has already exploded. The token is not just popular among retail investors and ‘Slap-to-Earn’ players, but professional traders and big trading firms are showing keen interest in Catslap as well.
Source: CatSlap
Users are rewarded for simply clicking in the project’s play-to-earn game. Interested users just need to head to Catslap’s website, connect their wallet, and start slapping their chosen character. Players can choose three slap victim characters.
Though users can slap without connecting their wallets, such slaps won’t count toward their personal score. However, ranking players on the Slapometer are eligible for significant rewards.
Adding to Catslap’s credibility is its 10-year team vesting rule, which means the team can’t manipulate market dynamics. The token earned a MEXC listing earlier this month.
Crypto in the next 5 years – Our verdict
It is almost certain that crypto’s future in the next five years is bright. Cryptocurrencies are not just a passing trend; rather, they are here to stay and will become a daily part of our financial lives.
Additionally, regulatory clarity surrounding cryptocurrencies, especially focusing on investor protection and money laundering, have the potential to pave the way for the mass adoption of digital assets.
Technical innovations, such as interoperability solutions, DeFi, and the tokenization of real-world assets, will also play a key role in accelerating the adoption of cryptocurrencies.