Despite recent price drops in major cryptocurrencies, a new report from Gemini suggests several factors could fuel crypto expansion over the next few years.

The report, shared with crypto.news, highlights a positive outlook for the crypto market driven by easing monetary policies, improving regulations, and potential consumer applications.

Shifting Monetary Policy Creates Opportunity

One key factor is the shift in global monetary policy. Tight policies are loosening, with central banks like the ECB and Bank of Canada cutting rates. This could weaken the US dollar, potentially boosting crypto prices.

Similar conditions in early 2019 led to a crypto market upswing, and the report suggests these trends could repeat.

Regulation and Politics Turning Crypto-Friendly

The US political landscape is also shifting towards crypto-friendly legislation. Bipartisan support is growing, with potential Republican victories in upcoming elections expected to lead to more favorable regulations. Even Democrats are embracing crypto, with presumptive nominee Kamala Harris seeking advice from tech experts.

This political shift, combined with industry advocacy and widespread adoption, points towards a more supportive regulatory environment that could attract more institutional and retail investors. Gemini research shows 73% of US crypto owners consider a candidate's stance on crypto when voting.

Infrastructure Growth Paves the Way for Applications

While concerns exist about infrastructure development outpacing user applications, the report argues this could lead to successful consumer applications in the future. The rise of prediction markets like Polymarket and the growth of stablecoins illustrate this potential.

Stablecoins, in particular, are experiencing rapid growth and integration with layer 2 solutions on Ethereum. These stablecoins could play a crucial role in global payment networks, leveraging the expanding blockspace.

Overall, Gemini's report paints a positive picture for the future of crypto. Easing monetary policy, improving regulations, and the potential for new applications could all contribute to continued growth in the crypto market.