Author: HASHED
Compiled by: Deep Tide TechFlow
Hashed has established and strictly enforced internal policies and procedures aimed at identifying and effectively managing conflicts of interest associated with investment activities. This content is for reference only and does not constitute legal, business, investment, or tax advice. Furthermore, any securities or digital assets mentioned are for illustrative purposes only and do not constitute investment advice or an invitation to provide investment consulting services.
Introduction by Simon Kim: Hashed 2025 Investment Proposition and Outlook on US Cryptocurrency Policy
Currently, we are at a critical moment where technological innovation intertwines with policy change. I am pleased to introduce our two important reports: (Hashed 2025 Investment Proposition: Global Blockchain Applications Centered on Asia) and a special report (2025 Trump Second Term: The Future of US Cryptocurrency Industry Policy).
The blockchain industry is at a turning point, with increasingly improved infrastructure, gradual institutional participation, and unprecedented opportunities emerging. Our investment outlook for 2025 is based on witnessing technological innovation, industry challenges, and cyclical development of market maturity over the years in the global market.
In recent years, our strategic direction has been validated by several key trends: blockchain infrastructure has become more stable and reliable, the stablecoin ecosystem continues to expand, and high-performance networks are gradually fulfilling their promises of convenience and efficiency. These advancements, coupled with increased institutional investment and the expansion of the global digital economy, have paved the way for the large-scale application of blockchain technology.
We have divided our investment propositions into three parts:
Reviewing 2024 investment propositions: Providing readers with transparent insights into industry growth and market dynamics through real data analysis.
Vision and strategy focus: Clearly defining our attention to high-growth markets and emerging opportunities.
Priority investment areas: Explained by our investment team on how to build a more inclusive and efficient blockchain ecosystem.
In addition, Hashed's open research team has specifically analyzed the potential policy directions regarding crypto assets that the US may take during Trump's second term in 2025. This report explores key topics, from stablecoin legislation to industry regulation, which may reshape the global market landscape. In the context of an increasingly interconnected global blockchain, understanding these policy directions is crucial for industry development.
Through these two reports, we aim to provide unique perspectives for our partners to help them understand the potential impacts of policy changes on market dynamics and investment opportunities. We believe that this combined view of market insights and policy analysis will provide significant references for strategic decision-making in 2025 and beyond.
We sincerely invite you to read these two reports and look forward to your feedback and suggestions.
Hashed 2025 Investment Proposition: Centered on Asia, Leading Global Blockchain Applications
Hashed has been committed to driving blockchain into the golden age—a phase of widespread adoption driven by practical applications and global participation. We believe that Asia, with its highly digitalized society, rapidly growing economy, and open attitude towards new technologies, will play a central role in this transformation. From stablecoins becoming pillars of the financial system to the gradual maturation of efficient and scalable blockchain technology, the entire ecosystem is now ready for real-world applications. We predict that 2025 will mark the starting point for the large-scale application of blockchain, with Asia leading this trend and promoting a more equitable and transparent implementation of distributed ledger technology globally.
Part One 2024 Investment Propositions: Data Reveals the Real Story
We reviewed the investment propositions for 2024 through data analysis, exploring the alignment and differences between actual market performance and expectations. By outlining key trends, important developments, and lessons learned, we gained a deeper understanding of the latest dynamics in the Web3 industry.
2024 Key Area 1: Infrastructure Development for Large-Scale Blockchain Applications
In 2024, the construction of blockchain infrastructure further matures, focusing on enhancing scalability and user experience. Progress in stablecoins and scalability solutions indicates that specialized technologies are significantly improving the efficiency and user participation of blockchain applications. Although some expectations have not been fully realized or have presented differently, the overall trend is clear: 2024 is a crucial year for blockchain to move towards large-scale application.
Theories written at the end of 2023 about 2024:
Specialized stablecoins will enter niche markets (such as B2B payments), challenging the dominance of USDT and USDC by providing targeted services.
2024 Review:
The trading volume, number of users, and number of transactions for stablecoins have significantly increased, with monthly active addresses rising from 10 million in 2022 to 25 million in 2024, an increase of 150%. This growth is unrelated to market volatility and demonstrates strong market demand.
Theories written at the end of 2023 about 2024:
Layer 3 Rollups will address the computational scalability issues of high-performance decentralized applications, particularly optimizing user experience in gaming and social scenarios.
2024 Review:
New types of blockchains have achieved breakthroughs in usability and scalability. For example, the game-focused Layer 3 chain B3 reached 1.8 million active accounts and 110 million operations in just four months, growing seven times faster than Ethereum in its early days.
2024 Key Area 2: Consumer-facing products maturing
With further optimization of payment channels and infrastructure, we are optimistic about products that combine AI and blockchain, transparent intellectual property management ecosystems, and the rise of fully on-chain economies. These trends are not only our observations but also a shared recognition among institutions and individual users in the industry. Social data also validates the correctness of this direction, further enhancing our confidence in future developments.
Theories written at the end of 2023 about 2024:
The combination of AI and blockchain will enhance smart contract functionality, data privacy protection, and drive the development of decentralized AI ecosystems, improving decision-making and ownership management.
2024 Review:
In 2024, "AI" became a hot topic of interest among users. According to Kaito data, narratives related to AI accounted for 45% in November, becoming the dominant trend in the crypto field.
2024 Key Area 3: Integration of Traditional Finance and Blockchain
In 2024, the tokenization of real-world assets (RWAs) and the advancement of new Bitcoin token standards (such as Ordinals, BRC-20) are driving deep integration between traditional finance and blockchain. RWAs have attracted billions of dollars of institutional capital, with giants like BlackRock and Franklin Templeton leading this trend. Meanwhile, Bitcoin has unlocked new functions akin to DeFi through new token standards, accounting for about 60% of network activity, further solidifying its role beyond just a store of value.
Theories written at the end of 2023 about 2024:
The tokenization of real assets and securities will become a bridge between traditional finance and blockchain, focusing on compliance and infrastructure development.
2024 Review:
The tokenization of RWAs has attracted billions of dollars of institutional liquidity, with institutions like BlackRock and Franklin Templeton accelerating this trend and planning to continue through 2025.
Theories written at the end of 2023 about 2024:
Ordinals and BRC-20 standards on Bitcoin will expand their functionalities through data inscription and tokenization, creating new opportunities akin to DeFi.
2024 Review:
Since 2023, new standards such as Ordinals and Runes have driven significant growth in Bitcoin network activity, currently accounting for about 60% of transaction volume.
Part Two Asia: The Intersection of Belief and Opportunity
Beyond the noise and hype, we delve into why Asia can continue to lead Web3 innovation. From user base to developer ecosystem, Asia's unique advantages make it a core region for blockchain development, and the opportunities cannot be overlooked.
Hashed firmly believes that the golden age of blockchain will not belong solely to a select few in developed countries, but is a global opportunity, especially as a large number of users in Asia will become the main force. They will participate in various economic and non-economic activities on a fair and transparent global distributed ledger. Based on this vision, we have always regarded the Asian consumer market as a strategic priority and made investment layouts in the early stages.
In 2021, we seemed to be on the threshold of the golden age of blockchain. Bitcoin reached an all-time high, and Ethereum's DeFi and NFT ecosystems flourished, driving rapid market capitalization growth. The rise of altcoins marked typical signs of a bull market. By August 2021, users from emerging markets in Asia flocked into the blockchain space. Although these regions lacked cryptocurrency experts, users were enthusiastic about the technology. P2E (play-to-earn) games like Axie Infinity captured global attention, and the dream of mass adoption seemed within reach. However, with skyrocketing transaction fees and network congestion, Ethereum gradually became a luxury, while other high-throughput “Ethereum killers” exposed chain-level issues. The growth of Asian users eventually stabilized, with narratives shifting from frenzy to calm.
However, reality has not met expectations. The surge in activity has also led to a sharp increase in transaction fees, resulting in network congestion and turning Ethereum from a public resource into a luxury. Meanwhile, so-called “Ethereum killers,” despite promoting high throughput, frequently encounter chain-level issues. The initial influx of a large number of Asian users seemed promising, but ultimately stabilized. Before institutional participation, macroeconomic challenges and multiple market upheavals suppressed retail-driven growth. This wave of enthusiasm ultimately ended, leaving us with the narrative of the last cycle.
During the subsequent year-long crypto winter—characterized by significant declines in market indicators and a prolonged bear market—one thing remained "stable": stablecoins. Ironically, in this industry that champions decentralization, the most popular are fiat-backed stablecoins. Even with rising interest rates and decoupling from overall market trends, the use of stablecoins remains strong. This phenomenon is attributed to the fact that despite slow and costly development of financial and information infrastructure on the blockchain, users continue to rely on stablecoins for real on-chain value transfer. This indicates that the vision of on-chain value transfer initially proposed by Bitcoin is gradually maturing through its integration with fiat currencies.
At the institutional level, the approval of cryptocurrency ETFs has opened doors for institutional capital to enter the blockchain realm.
During this period, as the fundamentals of stablecoins continued to solidify, a new wave of high-performance blockchain competitors emerged. These platforms have found a balance between integrity, decentralization, usability, and commercial viability. After being stress-tested through the bear market, the surviving blockchain networks have become more robust. Meanwhile, Ethereum's dominance in key metrics has begun to fragment, with more activity shifting to L2 solutions (which Ethereum was originally designed for) and the rapidly developing monolithic blockchain ecosystems. Unlike the previous cycle, which was constrained by high transaction fees, the current blockchain ecosystem provides a more accessible environment for the masses, promoting broader user participation.
This change coincides with the deep application of stablecoin payment networks as a key financial pillar and the formal establishment of high-performance blockchains as ecosystem-level infrastructure. At the institutional level, the approval of major cryptocurrency ETFs has opened doors for institutional investment and accelerated its integration with the mainstream financial system. Unlike the previous speculative frenzy, this time institutional interest is more serious, with more companies exploring blockchain applications in infrastructure and consumer-facing solutions.
In this revival, Asia's performance stands out. Ordinary users are returning to a market with more robust infrastructure, diverse application scenarios, and more efficient value transfer mechanisms. Meanwhile, major governments and enterprises in regions such as the Middle East, Japan, Hong Kong, and Southeast Asia are starting to take blockchain technology seriously, marking their shift from speculative interest to strategic layout. Asia's advantage stems from its unique combination of conditions: high mobile device penetration, a tech-savvy demographic, and a rapidly developing digital economy. Additionally, the cultural preference for gamification and collective participation aligns perfectly with new consumer-facing application scenarios in blockchain.
We believe this is not merely a simple replay of past cycles but a transformative phase that lays the foundation for a globally distributed ledger supporting large-scale applications. Asia has a large, young, and digitally native population, giving it a unique advantage in leading this transformation. With an open attitude towards innovation and an active consumer market, Asia will continue to be a core driver of blockchain's future development, accelerating the global transition to decentralized systems.
Part Three 2025: Key Actions
The investment team conducted an in-depth analysis of future trends based on market signals and ecosystem dynamics. We identified key value drivers and growth directions, proposing core trends that will shape the next wave of Web3 adoption.
Reshaping currency: Stablecoins entering traditional markets
Author: Simon Kim
In the second quarter of 2024, the trading volume of stablecoins surpassed Visa for the first time, marking its application range expanding from cryptocurrency exchanges and DeFi to B2C and B2B financial sectors. In South Korea, stablecoins now account for 10% of trade settlements, demonstrating a shift from the gray area to a regulated financial system.
Behind this trend is the integration of stablecoins into payment systems by traditional financial institutions to enhance efficiency, reduce payment costs, and accelerate cross-border transactions. Even SWIFT is exploring the integration of stablecoins into existing payment infrastructures, indicating that the global payment system is moving towards real-time settlement.
In addition to payments, stablecoins have also created new opportunities in the lending market. By leveraging the interest rate differentials between high and low-interest countries, stablecoins serve as stable collateral, facilitating cross-border capital flows and enhancing global financial efficiency. At the same time, they also provide more financial service opportunities for the unbanked.
These trends create significant investment opportunities for blockchain infrastructure and application development. While technological scalability and security enhancements remain urgent, long-term market growth will increasingly depend on regulatory adaptation and the development of institutional frameworks.
Unlimited Creators: How Autonomous Digital Entities Disrupt Attention-Driven Social Media
Author: Ryan Kim
Although Web3 social platforms have yet to surpass traditional giants like X.com (formerly Twitter) or TikTok, a revolution led by autonomous digital creators is brewing. These smart creators can generate a continuous stream of high-quality content around the clock, breaking the limitations of human creativity.
Looking back at the development of social media, from Facebook's friend networks to TikTok's algorithmic recommendations, platforms have continually evolved to capture user attention. The next phase will be dominated by smart entities that transform user attention into real economic value through their integration with smart contracts. Through this mechanism, profits can be redistributed to token holders, building a self-reinforcing attention economy.
This model transitions Web3 social from a traditional speculative model to a true economic engine, making creativity and attention vital components of the value ecosystem and potentially shaking the current dominance of centralized platforms.
New Paradigm of AI: Decentralized Intelligence
Author: Baek Kim
Currently, centralized computing systems are facing bottlenecks. Opaque governance, data monopolies, and worsening privacy issues necessitate a disruption of traditional frameworks. Decentralized intelligence offers a new solution by sharing power, ownership, and participation through distributed networks.
The core characteristics of this model include:
Data Sovereignty: Users have complete control over their own data.
Collaborative Governance: Avoiding single points of failure through distributed decision-making mechanisms.
Transparent Incentives: Ensuring participants receive fair returns.
By shifting from closed proprietary systems to open decentralized frameworks, this new model redefines the management of computing resources, enhancing trust and efficiency while embedding accountability mechanisms into the core of the digital ecosystem, making innovation more inclusive.
Data Gold Rush: The $20 trillion opportunity hidden in high-quality data
Author: Jun Park
Each leap in technological advancement is accompanied by breakthroughs in key scarce resources:
In the early 2010s, the lack of models was addressed through architectures like AlexNet and CNN.
In the late 2010s, bottlenecks in computing power gradually eased with the emergence of large-scale foundational models.
Today, the key to the next generation of technological breakthroughs lies in high-quality data, an underutilized resource that will become the core fuel for future innovation.
Traditional systems often hoard data within closed proprietary frameworks, leading to a significant amount of data resources being underutilized. Blockchain technology provides a new means to unlock this hidden value:
Ownership and source tracking: Ensuring data contributors have control over their data and receive due recognition.
Privacy-preserving access: Safely using sensitive datasets while protecting data privacy.
Incentive alignment: Rewarding data-sharing behavior through transparent economic models.
For example, Zettablock provides solutions for specific fields through a decentralized data layer, while Story Protocol focuses on source tracking for creative assets. These blockchain-driven frameworks demonstrate how to empower various industries. By unlocking access to non-public data, blockchain-based ecosystems can not only drive innovation but also provide customized solutions for a global market valued at $20 trillion, covering multiple sectors from finance to healthcare.
Liberating ordinary users: Consumer-centric applications driving large-scale adoption of blockchain
Author: Edward Tan
The next wave of growth for blockchain technology will be driven by consumer-centric applications that will make the use of crypto technology as simple and smooth as traditional applications. Just as crypto games attracted millions of users, on-chain services for users are expected to become a key entry point for blockchain into the mainstream market.
By redesigning familiar user processes and integrating efficiency and transparency, blockchain applications can fundamentally change everyday interactions. For example, Modhaus transforms ordinary transactions into personalized experiences by tokenizing fan consumption behavior in the entertainment industry, directly facilitating deep interaction between fans and idols. Similarly, mobile interfaces designed for DeFi protocols can simplify user operations, making it easy for ordinary consumers to use decentralized exchanges (DEXs), money markets, and other tools, thus lowering the entry barrier.
To break the monopoly of centralized giants over the ordinary user market, blockchain teams need to focus on user accessibility and guided experiences. By designing applications that closely align with users' lifestyles, consumer products based on blockchain are expected to drive large-scale adoption and build a sustainable consumer ecosystem.
Social on-chain: Integrating instant messaging platforms with decentralized ecosystems
Author: SJ Baek
With 900 million monthly active users, Telegram and its blockchain TON showcase the immense potential of driving large-scale Web3 adoption through mature social platforms. Its growth momentum primarily comes from click-based and hyper-casual games, such as Notcoin, which have attracted tens of millions of users to engage in on-chain interactions. Similarly, Line and Kakao, with over 200 million monthly active users, are attracting developers through the Kaia platform to promote the development of social, gaming, decentralized finance (DeFi), and real-world assets (RWA) projects, bringing more users into the Web3 ecosystem.
Compared to WeChat's centralized ecosystem, the open application ecosystem of Telegram and TON is still in its early stages. This ecosystem is characterized by rapid user growth, but lower user activity and retention rates. However, validated vertical application areas (such as vertical social platforms, mid- to heavy-weight games, short video content, and social finance) offer great potential for on-chain user growth and revenue enhancement, while also helping to extend user lifecycles.
As an open platform, Telegram and TON's operational teams are relatively small, leading to deficiencies in key infrastructure such as social data platforms, application distribution channels, and technical support. Addressing these gaps and enhancing platform scalability requires building a middleware layer supported by specialized teams or mature applications to improve these functions and promote further ecosystem development.
Transformation of Transactions: Revitalizing High-Growth Assets and Traditional Systems
Author: Dan Park
Blockchain-driven markets are transforming high-growth assets and traditional industries by creating efficient, transparent platforms that address long-unmet needs and systemic inefficiencies.
High-growth assets: As demand for emerging resources grows rapidly, the blockchain market is providing trading platforms for these assets. For instance, GAIB focuses on trading computing resources to meet the fast-growing needs of decentralized AI and cloud computing. At the same time, markets for unconventional assets (like urban air rights) are also releasing liquidity. These assets are typically traded frequently but are fragmented in the market; through blockchain technology, not only are the trading processes simplified, but opportunities for more participation and innovation are also provided.
Modernizing traditional infrastructure: Some traditional industries are also modernizing through blockchain technology. Tokenization systems can simplify processes and enhance industry transparency. For example, multiple platforms are optimizing USD-backed stablecoin ecosystems or introducing real-time data sharing features for stock and commodity trading networks. These improvements not only enhance the efficiency of global trade but also allow more people to participate in markets that have traditionally been hard to enter.
These blockchain markets are not just mediums for trading; they are significant engines driving long-term product-market fit (PMF) for blockchain technology. By changing the way industries operate, these platforms open doors to new opportunities for more people while injecting new vitality into traditional systems.