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Q1 2025 Crypto Update

What happened in crypto and blockchain? Let’s take a look.

The first quarter of 2025 has been a pivotal period for the cryptocurrency industry, marked by significant developments that have reshaped the landscape. From groundbreaking regulatory initiatives to major corporate ventures, the crypto ecosystem has experienced a dynamic and transformative start to the year.

1. Establishment of the U.S. Strategic Bitcoin Reserve

In a landmark move, President Donald Trump signed an executive order on March 6, 2025, officially establishing a U.S. Strategic Bitcoin Reserve. This initiative aims to diversify the nation’s financial assets and position the United States as a leader in the digital currency space. The reserve will be primarily funded by Bitcoin assets already seized and held by the federal government, estimated to be around 200,000 BTC. This move underscores the administration’s commitment to integrating cryptocurrencies into the national financial framework.

2. Formation of the SEC Crypto Task Force

On March 21, 2025, the U.S. Securities and Exchange Commission (SEC) convened the inaugural meeting of its Crypto Task Force. Led by Republican SEC Commissioner Hester Peirce, the task force aims to explore the applicability of existing securities laws to digital assets and consider the need for new regulatory frameworks tailored to cryptocurrencies. This initiative reflects a shift towards a more accommodating regulatory environment under the current administration, aligning with President Trump’s pro-crypto stance.

3. Launch of Major Stablecoins by Prominent Financial Institutions

The stablecoin market witnessed notable expansions with significant players entering the arena:

  • World Liberty Financial’s USD1: Backed by Donald Trump and his sons, World Liberty Financial announced plans to introduce USD1, a stablecoin fully backed by U.S. treasuries, dollars, and cash equivalents. Aimed at facilitating secure cross-border transactions for institutional investors, USD1 is set to be issued on both the Ethereum network and Binance’s blockchain.
  • Fidelity Investments’ Stablecoin Initiative: Reflecting the growing mainstream interest in digital assets, Fidelity Investments disclosed that its digital asset division is testing a dollar-pegged stablecoin. While specific details and a launch timeline remain undisclosed, this move signifies Fidelity’s commitment to integrating cryptocurrency solutions into its financial services.

4. BlackRock’s Introduction of a Bitcoin ETP in Europe

BlackRock, the world’s largest asset manager, expanded its cryptocurrency offerings by launching its first Bitcoin exchange-traded product (ETP) in Europe. Domiciled in Switzerland and listed across major European exchanges, the ‘iShares Bitcoin ETP’ provides institutional and retail investors with regulated exposure to Bitcoin, marking a significant milestone in the mainstream adoption of digital assets.

5. Market Volatility and Investor Sentiment

The cryptocurrency market experienced considerable volatility during this quarter:

  • Market Downturn: The market faced one of its most challenging quarters, with Bitcoin’s price declining from $65,000 on January 1 to $42,000 by March 31, marking a 35.38% decrease. This downturn has been attributed to various factors, including profit-taking, regulatory uncertainties, and macroeconomic conditions.
  • Proliferation of Crypto Tokens: As of March 2025, the number of crypto tokens surpassed 37 million, with projections suggesting this figure could reach 100 million by year’s end. This exponential growth underscores both the innovation within the space and the challenges investors face in navigating an increasingly crowded market.

6. Argentina’s $LIBRA Cryptocurrency Scandal

In February 2025, Argentina faced a significant cryptocurrency scandal involving President Javier Milei’s promotion of a meme coin named $LIBRA. The coin’s value surged following Milei’s endorsement but subsequently plummeted, leading to allegations of a “rug pull” scam and substantial losses for investors. This incident has sparked political turmoil and raised concerns about the need for greater oversight in cryptocurrency promotions by public figures.

7. Legislative Developments and Industry Advocacy

The crypto industry has been proactive in shaping its regulatory future:

  • Congressional Engagement: A new congressional working group on cryptocurrency regulation has been established, reflecting the industry’s growing political influence and the government’s commitment to fostering a balanced regulatory environment.
  • State-Level Initiatives: Texas is considering legislation to incorporate Bitcoin into its state reserves, building on its leadership in Bitcoin mining and signaling a broader acceptance of cryptocurrencies at the state level.

8. Technological Innovations and Research

Advancements in technology continue to drive the crypto industry’s evolution:

  • AI Integration in Crypto Portfolio Management: Research has been conducted on leveraging large language models (LLMs) for automated cryptocurrency portfolio management. This approach aims to enhance investment strategies by utilizing AI to analyze multi-modal data and make informed decisions, reflecting the convergence of artificial intelligence and blockchain technology.

Conclusion

The first quarter of 2025 has been transformative for the cryptocurrency industry, characterized by significant regulatory advancements, institutional adoption, market fluctuations, and technological innovations. As governments and financial institutions continue to engage with digital assets, the crypto ecosystem is poised for further integration into the global financial system. However, incidents like Argentina’s $LIBRA scandal highlight the ongoing need for robust regulatory frameworks to protect investors and ensure the sustainable growth of the industry.

The Ten Best Crypto Investments for 2025

The cryptocurrency landscape is evolving at breakneck speed, making 2025 an exciting yet challenging year for investors. With blockchain technology continuing to expand its reach into financial services, gaming, supply chain management, and even artificial intelligence, the opportunities are vast. Whether you’re a seasoned crypto investor or just entering the space, understanding where to put your money can make all the difference. Here’s a detailed look at the 10 best crypto investments for 2025.

top ten crypto investments

1. Bitcoin (BTC)

Market Outlook: Despite the emergence of thousands of altcoins, Bitcoin remains the king of cryptocurrencies. As the most widely adopted and secure digital currency, it continues to be a safe haven for both institutional and retail investors.

Why Invest:

  • Deflationary asset with a capped supply of 21 million BTC.
  • Increasing adoption as “digital gold.”
  • Hedge against inflation.

Risks:

  • Regulatory scrutiny.
  • Energy concerns related to mining.

Verdict: Bitcoin remains a cornerstone of any balanced crypto portfolio.

2. Ethereum (ETH)

Market Outlook: Ethereum is the leading smart contract platform and the backbone of decentralized finance — known widely as “DeFi” — and NFTs.

Why Invest:

  • Successful transition to proof-of-stake (PoS) in 2022 with Ethereum 2.0.
  • Expanding Layer 2 ecosystem (e.g., Arbitrum, Optimism).
  • Massive developer community and continuous innovation.

Risks:

  • Competition from other smart contract platforms.
  • Scalability concerns.

Verdict: Ethereum’s dominance in DeFi and smart contracts makes it a solid long-term investment.

3. Solana (SOL)

Market Outlook: Known for its high throughput and low transaction fees, Solana has quickly risen to prominence as a top competitor to Ethereum.

Why Invest:

  • Lightning-fast transactions (65,000 TPS).
  • Strong ecosystem for DeFi and NFTs.
  • Backing from major investors and partnerships.

Risks:

  • Outages and technical vulnerabilities.
  • Centralization concerns.

Verdict: Solana’s performance improvements and growing ecosystem make it a compelling choice for 2025.

4. Polkadot (DOT)

Market Outlook: Polkadot aims to create an interconnected blockchain ecosystem where different chains can securely communicate with each other.

Why Invest:

  • Pioneering interoperability between blockchains.
  • Parachain auctions drive demand for DOT.
  • Strong backing from a passionate developer community.

Risks:

  • Complex technical design.
  • Intense competition in the interoperability space.

Verdict: If interoperability takes center stage in the crypto world, Polkadot is poised to thrive.

5. Cardano (ADA)

Market Outlook: Cardano is a peer-reviewed blockchain platform with a focus on sustainability, scalability, and security.

Why Invest:

  • Focus on academic research and rigorous testing.
  • Continuous upgrades (e.g., Hydra scaling solution).
  • Commitment to decentralization.

Risks:

  • Slower development pace compared to competitors.
  • Questions around adoption and ecosystem growth.

Verdict: Cardano is an appealing investment for those who prioritize research-backed innovation.

6. Chainlink (LINK)

Market Outlook: Chainlink is the leading decentralized oracle network, enabling smart contracts to interact with real-world data.

Why Invest:

  • Essential for DeFi, NFTs, and other blockchain applications.
  • Partnerships with industry leaders across finance and tech.
  • Expansion into staking and hybrid smart contracts.

Risks:

  • Dependence on broader blockchain adoption.
  • Increased competition in the oracle space.

Verdict: As a critical infrastructure piece, Chainlink’s role in the blockchain economy makes it indispensable.

7. Avalanche (AVAX)

Market Outlook: Avalanche has positioned itself as a fast, scalable smart contract platform with a strong emphasis on interoperability.

Why Invest:

  • High-speed transactions and low fees.
  • Subnet architecture allows for customizable blockchains.
  • Robust ecosystem growth in 2024.

Risks:

  • Competing with other Layer 1 solutions.
  • Potential regulatory challenges.

Verdict: Avalanche’s innovative approach to scalability positions it as a major contender in 2025.

8. Cosmos (ATOM)

Market Outlook: Cosmos is often referred to as the “Internet of Blockchains,” aiming to create an interconnected blockchain network.

Why Invest:

  • Unique focus on interoperability and cross-chain communication.
  • Strong developer ecosystem.
  • Introduction of liquid staking and new governance features.

Risks:

  • Competing with Polkadot for interoperability dominance.
  • Slower ecosystem growth compared to Ethereum and Solana.

Verdict: Cosmos remains a top choice for investors betting on a multi-chain future.

9. Arbitrum (ARB)

Market Outlook: As a leading Layer 2 solution for Ethereum, Arbitrum aims to improve scalability and reduce fees while maintaining Ethereum’s security.

Why Invest:

  • Rapid adoption by DeFi protocols and dApps.
  • Strong transaction volume and user growth.
  • Clear roadmap for further decentralization.

Risks:

  • Dependency on Ethereum’s performance.
  • Competition from other Layer 2 solutions.

Verdict: With its proven scalability improvements, Arbitrum is a solid bet for Ethereum believers.

10. Polygon (MATIC)

Market Outlook: Polygon has transformed from a simple Layer 2 solution to a comprehensive ecosystem for building scalable dApps.

Why Invest:

  • Strong ecosystem partnerships (e.g., Disney, Reddit).
  • zkEVM rollout enhances security and scalability.
  • Proven track record in onboarding major Web3 projects.

Risks:

  • Competition from newer Layer 2 solutions.
  • High reliance on Ethereum.

Verdict: Polygon’s consistent growth and innovation make it a top-tier investment for those looking to bet on Ethereum’s scaling solutions.

Final Thoughts

The crypto market in 2025 will likely be shaped by both technological advancements and regulatory developments. Bitcoin and Ethereum remain foundational investments, while platforms like Solana, Avalanche, and Arbitrum present high-growth opportunities. Projects focusing on interoperability, such as Polkadot and Cosmos, cater to the growing demand for seamless blockchain communication.

Before making any investments, it’s crucial to conduct thorough research, stay updated with market trends, and assess your risk tolerance. Diversifying your crypto portfolio across different use cases—from DeFi to interoperability—can help mitigate risk and maximize potential returns. As always, only invest what you can afford to lose and consider consulting with a financial advisor.

So You’ve Made A Little Money…

We check in on the 2024 Growth Portfolio as we get ready to wind down the year.

One of the fun things about crypto is having a Ron Popeil “set it and forget it” attitude. If you want, you can drop a little money here and there and not worry about it.

Dollar Cost Averaging — remember that? — has made some people some money; especially those who decided that a hundred bucks every month can get dropped into Bitcoin at a dirt-cheap price.

And That Brings Us to the Growth Portfolio

The idea behind our 2024 Growth Portfolio — and previous iterations, which you can read about here: 2023 Growth Portfolio and here: 2022 Growth Portfolio — was a mutual-fund-like approach to crypto investing. (It’s also hypothetical, so YMMV, DYOR, and don’t invest more than you can afford to lose.) Put simply, we took $10,000 and divided it equally between 10 different coins or tokens. Then, at the end of the year we can see whether we did okay, or not.

In order to actually achieve these numbers, you would have invested on exactly January 1, 2024 and you would have held all year. While it’s not the NVDA stock everyone loves, it is still not a bad sight at all.

First, ENS…

$ENS is Ethereum Name Service. It has done quite well in 2024, up 153%. Here’s a screener of its 2024 high.

However, ENS is known for a little craziness…here’s what its 2023 looked like..

And bear in mind its all time high was $83.40 in November 2021.

Next, SHIB…

Viral meme coin sensation, that $SHIB. Ups and downs. Same old song.

Some time in early 2024, it was at a low of a bunch of zeroes before the number 9, then it tripled. Like this.

Nice work if you can get it. $1000 is now nearly $2400.

The Big NARRATIVE Winner? Bitcoin. The Corn. BTC.

Your $1000 stake would have a little more than doubled, but the narrative win goes to BTC. Could be part the economy — no one knows (really) what’s (really) going on — could be a little of the election, could just be a general sense that now might be the time.

And it could be that psychological barrier of $100,000.

So close. So close and yet…so far.

Now, The Losers

We’re not going to focus too much on these; we’re trying to stay positive. However, after two years bringing up the rear, it’s probably time to ditch $JEWEL (DeFi Kingdoms) and $MAGIC (Treasure).

$SUSHI was the only other coin in the portfolio that was down; it remains a pretty good project and itself is a Top 400 coin.

What’s Next?

Well, we’ll keep an eye on these developments and will post again on the 2024 results in January. But, suffice it to say, some of the losers might get tossed out; there’s probably room for a couple of new entrants from near the bottom and near the top of the rankings.

As they say, stay tuned.

Up Only In 2024?

So far so good for the 2024 Growth Portfolio.

Here we are, on the way to another wacky crypto year. And things are looking…up.

If you’re new here, welcome! We write about crypto and trends and investments and the attempt to make sense of it all. We’ve been at it, off and on, for (checks notes) NEARLY SEVEN YEARS! (Here’s our very first post: 5 Things to Watch During the Tournament.)

And one of the things we do here is create hypothetical portfolios that you can use to hedge your bets. (DO YOUR OWN RESEARCH. NOT INVESTMENT ADVICE.) We’ve done so for a few years now and we have had some fun with it; our Growth Portfolios have been the most interesting to follow. 2022 was the first one and, after a few tweaks here and there, we’ve settled on a decent mix of Traditional Crypto (BTC, ETH), Platforms (AVAX), DeFi (SUSHI) and some others (see below). 2023 did pretty, pretty well.

How Bout 2024?

Some thoughts on what’s here…

Bitcoin Is Very Much Alive

Story time: Back in my high school speech team days, there was a competitor who was talking about the “Peace Corps” but pronouncing it “Peace Corpse.” When she yielded to questions, one smarty pants in the audience asked “Is the ‘Peace Corpse’ alive or dead?” Her response: “Oh it’s very much alive!”

Bitcoin, too, having been declared dead more often than…well, insert whatever thing here…is on a tear so far in 2024. Up 23.69%. We’ll take it.

If You Bought ENS, You’re Enjoying a Ride

Ethereum Name Service is rocking AND rolling, but last year it…didn’t really rock. Or roll. Unless rolling downhill is a thing.

Timing is everything, though: quite a few folks, we would surmise, just didn’t sell after it imploded, hoping for a return to glory. And, with an all-time high north of $83, it’s going to take a while to get back there.

What is $MAGIC and Why Is it the Leader?

We’ve written about MAGIC before. MAGIC could be part meme coin, part…something else. Honestly, it’s a gaming coin and that’s where we’re kinda…huh? So we don’t know enough about it and the Treasure.lol website — YES IT HAS A DOT-LOL DOMAIN — but we will admit the game looks cool and it was fun a couple years ago to watch it go from next to nothing to 6 bucks.

(Then we watched it go back down again. Sigh.)

But, lo and behold, it’s 2024 and it’s the leader among our portfolio, up 27 percent. Yay, MAGIC!

Anyway, There’s Your Portfolio

Again, do your own research. These are ideas, and some of them could eventually drag your portfolio down.

Go get ’em!

Who Needs an ETF When You Have a Growth Portfolio?

There was news this past week about a Bitcoin ETF. And now they’re everywhere, it seems. Alas, you could call up your people and get some Bitcoin ETF action in your IRA or investment account. Or you could just build what we call a “Growth Portfolio.”

So with this post, we’ve decided to take a look at the 2023 Growth Portfolio and get a sense of how it did.

Some thoughts on the above:

Bitcoin Is Halving a Moment

Deliberate play on words there. More on that in a second, but first, here’s as close as we can come to the 2023 chart.

In late October, BTC went above $30,000 — something it had done earlier in the year, too — and has yet to fall below that level. The ETF played a role in that, as rumors were rampant all year that the SEC would say it was okay.

But the “halving,” when the block rewards drop — they’re cut “in half” — is most likely the reason. Estimated to begin in April, if you wanted to bet on Bitcoin before it becomes less lucrative to mine, this is as good a time as any.

An Avalanche Snowball

Or, AVAX had a year, eh? Around the same time BTC was heading above 30K for good (at least for good for now), Avalanche was stuck below 10 bucks a piece. But then, an explosion of sorts…

Yes, that is darn near $50 each right around Christmas.

But here’s a caveat: all of these coins have a lot of ground to make back up. (Remember the ol’ axiom: If it drops 80%, it needs to go back up 5 times to get you back where you were.)

The Worst 2023 Performer? It’s Having a Moment in 2024

ENS is Ethereum Name Service. It’s the only coin in our portfolio that finished the year down (by 10.79%) but that was so 2023.

To be honest, we’re not sure why the above 2024 chart shows so much explosion for ENS, but we’ll take it.

What’s Next for the Growth Portfolio?

In the next week, we’ll update the portfolio with some ideas for 2024; probably a tweak or two (maybe with some help from AI). Stay tuned.