The year 2025 may be noted as the time when cryptocurrencies truly became mainstream.
Following an impressive first half of 2025, the crypto market faces high expectations for the remainder of the year. Various factors could influence crypto prices in the upcoming months, including potential interest rate reductions from the Federal Reserve and advancements in regulatory frameworks. Conversely, if economic conditions deteriorate and consumer confidence declines, a more cautious investment atmosphere could lead to setbacks for cryptocurrencies.
Bitcoin (BTC -1.43%) is expected to maintain its dominance in the latter half of 2025. However, any significant growth may lean towards cryptocurrencies that enhance stablecoins and decentralized finance (DeFi) development, setting the foundation for expansion this year and beyond. Here are three cryptocurrencies worth watching.
1. Ethereum
Ethereum (ETH -2.67%) seemed to lag behind Bitcoin in the early part of the year but has rebounded over the summer. As of September 1, Ethereum recorded a 65% rise over the past three months, significantly outperforming Bitcoin.
One major driver behind Ethereum’s jump is its status as the leading smart contract cryptocurrency. Smart contracts enable programmability on the blockchain, allowing users to create DeFi applications and stablecoins. As regulatory and institutional perspectives evolve, both sectors appear poised for expansion, potentially increasing project creation and the network’s value.
According to DefiLlama, Ethereum’s ecosystem holds approximately 60% of all funds tied up in DeFi applications, with nearly $90 billion in total value locked across over 1,500 protocols, solidifying its status as the DeFi leader.
Why Ethereum could boom
Increased engagement within the ecosystem and institutional interest in staking could act as significant catalysts for Ethereum in the latter half of the year.
2. Chainlink
Chainlink (LINK -2.46%) serves as a bridge between blockchain networks and real-world data. This “oracle platform” compiles and transmits information into cryptocurrency ecosystems, which is crucial for the operation of smart contracts.
For instance, if one borrows funds via a DeFi platform, the smart contract manages collateral and interest. If the collateral’s value declines significantly, it may trigger an automatic liquidation.
Why Chainlink could boom
With the ongoing growth in decentralized finance and interest in tokenization, Chainlink’s oracle network is well-positioned to benefit from this budding market.
3. Solana
Solana (SOL -1.54%) emerged as a significant player during the last crypto bull market, achieving over 9,000% gains in 2021. While such dramatic increases may not recur, it has proven to be more than a temporary project, hitting a new peak at the beginning of the year after the successful launch of $TRUMP on its platform.
Why Solana could boom
With anticipations that the SEC might soon approve a spot Solana ETF, combined with heightened demand for staking cryptocurrencies and expansion in stablecoins and DeFi, Solana is set to gain an advantage.
The Crypto Rally May Not Be Sustainable
The cryptocurrency market is evolving, yet it remains an emerging industry with many uncertainties. Prices can be highly susceptible to market sentiment, making short-term predictions challenging. Therefore, it’s advisable to limit crypto investments to a small portion of your overall portfolio.
Global events, technical malfunctions, or significant scams could lead to sudden price declines. Conversely, the market may continue to solidify gains and establish itself as a more mature asset class, albeit without the explosive growth seen in previous years.
These cryptocurrencies possess the potential to excel in the latter half of 2025. They are also well-equipped for long-term success and to weather future downturns in the crypto market. However, investors should be prepared for possible losses alongside any gains.
