DWF Labs Projects $190 Billion Crypto Liquidation by 2025

DWF Labs announced on December 23 that by 2025, over $190 billion in liquidation cleared market leverage, transitioning the crypto sector towards a more stability-focused structure.

This shift indicates a maturing crypto market, with significant growth in asset-backed structures, stablecoins, and real-world assets, moving beyond speculative phases towards mainstream financial integration.

$190B in Liquidations to Reshape Crypto Market by 2025

DWF Labs has issued a forecast stating that over $190 billion in liquidations will clear excessive leverage in the crypto market by 2025. This aligns with the firm’s stance on transitioning the market, emphasizing a shift from speculation to asset backing.

The crypto market’s supply of stablecoins has grown by over 50% year-on-year, with over $200 billion already allocated to interest-bearing stablecoins. This underscores the transformation of crypto from a mere payment tool to a form of asset management, providing more stability in the market.

The market’s response includes an increase in on-chain Real World Assets (RWA), which expanded from around $4 billion to $18 billion. Also, the proportion of derivative trading between decentralized and centralized exchanges has quadrupled, signifying the market’s move towards a more credible financial infrastructure.

Bitcoin Surges Past $88K Amid Market Changes

Did you know? The supply of stablecoins in crypto markets has grown by over 50% year-on-year. This remarkable expansion highlights a significant shift from crypto being a simple transaction medium to a viable asset management tool.

The current price of Bitcoin stands at $88,452.79, with a market cap of $1.77 trillion, representing 58.99% market dominance, according to CoinMarketCap. The 24-hour trading volume reached $35.98 billion, although experiencing a 0.77% dip over the same period. Other recent price changes include a 3.11% increase over seven days.

Coincu research suggests that the shift towards an asset-backed market could encourage financial sectors to engage more deeply with crypto assets. Regulatory frameworks may enhance stability and investor protection, thus facilitating broader acceptance.