#BNB
Summary
The crypto market performed robustly in 2024, despite not bringing explosive growth in new capital, companies within the crypto ecosystem demonstrated stronger sustainability. Looking ahead to 2025, Pantera Managing Partner Paul Veradittkit proposed eight key predictions covering the rise of RWA (on-chain real-world assets), the development of Bitcoin-Fi, the role of fintech as a crypto gateway, the revival of NFTs, and more. These predictions are based on current market trends and technological evolution, showcasing a bright future for crypto assets and infrastructure.
I. Market review and trend summary for 2024
In 2024, the overall market capitalization of the crypto market is expected to double, reaching $3.5 trillion. Among this, Bitcoin's market cap is about $1.9 trillion, while the total market cap of other cryptocurrencies is $1.6 trillion. Although the market did not experience significant shocks, its diversified nature enhanced its ability to cope with risks. Segmented fields such as payments, DeFi, gaming, ZK technology, infrastructure, and consumer applications all show sustained growth momentum.
Pantera's investment strategy in 2024 focuses on addressing key pain points within the ecosystem. For example:
Helika: Providing Web3 data analytics tools for crypto gaming.
Sahara AI: Integrating fragmented AI stacks to provide seamless user experiences for Web3 products.
Everclear: Standardizing the process of intent infrastructure by connecting stakeholders.
Nexus: A modular zkVM solution to meet the demand for ultra-scalable layers.
TON blockchain: Backed by Telegram's 950 million monthly active users, supporting user acquisition for consumer applications.
These investments reflect Pantera's focus on ecosystem sustainability and technological innovation.
II. Eight predictions for 2025
1. The proportion of RWA (on-chain real-world assets) will significantly increase
By the end of 2025, RWA (excluding stablecoins) is expected to account for 30% of the total locked value (TVL) on-chain, doubling from the current 15%. The growth of RWA is mainly reflected in the following aspects:
Acceleration of private credit: Improved infrastructure has made on-chain transfers of private credit more convenient, with asset value increasing by nearly $4 billion in 2024.
On-chain treasury bonds and commodities: On-chain treasury bonds currently value $2.67 billion and may attract more capital in the future.
More complex financial products: With the optimization of protocol infrastructure, products like stocks, ETFs, and bonds may be introduced on-chain.
These trends will drive RWA to become an important component of the crypto market.
2. The rise of Bitcoin-Fi
With the development of Bitcoin-native financial protocols (such as Babylon), it is expected that by 2025, 1% of Bitcoin will participate in Bitcoin-Fi. This growth benefits from the following factors:
Native protocols without bridging: Attract more users by reducing technical complexity.
High returns and rising Bitcoin prices: Stimulating investor interest.
Increased demand for BTC assets: Including new asset classes such as runes, ordinals, and BRC20.
The development of Bitcoin-Fi marks further maturation of the Bitcoin ecosystem.
3. Fintech as a gateway to cryptocurrency
Fintech companies (such as Venmo, Paypal, and Whatsapp) are becoming the primary entry points for users to access cryptocurrency. These platforms are characterized by neutrality and a large user base. For example:
Whatsapp: With 2.95 billion monthly active users, its built-in encryption feature Felix supports instant transfers.
Paypal and Venmo: Each with 500 million users and supporting cryptocurrency purchases.
Stripe and Robinhood: Further expanding cryptocurrency services through the acquisition of stablecoin companies and crypto exchanges.
The proliferation of fintech platforms may enable them to compete with traditional centralized exchanges in the field of crypto assets.
4. Unichain becomes the leader in L2 trading volume
Uniswap's trading volume and locked value continue to grow, driving the rise of its proprietary chain, Unichain. If Unichain captures half of Uniswap's trading volume, its volume will surpass that of the largest existing L2 networks (such as Arbitrum and Base), becoming a market leader.
5. The revival of NFTs and the expansion of application scenarios
The functionality of NFTs is gradually shifting from art and collectibles to practicality, primarily reflected in the following areas:
On-chain gaming: NFTs used for ownership and trading of gaming assets.
Identity and membership management: For example, Blackbird integrates NFTs into restaurant reward systems.
Tokenization of intellectual property: Story Protocol is dedicated to bringing global intellectual property on-chain, providing new revenue models for creators.
Brand collaborations: Luxury brand IWC launches member NFTs to unlock exclusive communities and events.
The flexibility and diverse use cases of NFTs will drive a new wave of growth in 2025.
6. Launch of the mainnet for the re-staking protocol
Re-staking protocols like Eigenlayer, Symbiotic, and Karak are expected to launch their mainnets in 2025. These protocols attract more network adoption by paying operators AVS and reducing fees. The potential of the re-staking market is enormous, which could become an emerging field worth billions of dollars.
7. Breakthrough in zkTLS technology
zkTLS leverages zero-knowledge proof technology to bring Web2 data onto the blockchain, promoting the diversification of on-chain services. For example:
Verifying data sources: Proving data comes from specific websites.
Privacy-preserving data oracles: Providing safer data inputs for on-chain services.
Although this technology is not yet fully mature, its potential is worth looking forward to.
8. Positive changes in the U.S. regulatory environment
In 2025, the U.S. regulatory environment may take a positive stance on cryptocurrencies for the first time:
Change of SEC Chair: Following Gary Gensler's resignation, a new leader may push for regulatory clarity.
Policy support: An expert team appointed by Trump is committed to developing a legal framework for cryptocurrency.
Taxation and asset class definitions: Clearer policies are expected to be introduced.
These changes may bring long-term benefits to the crypto industry.
III. Summary and Outlook
In 2025, the crypto market will continue to grow driven by infrastructure optimization, improved user experience, and a better regulatory environment. Pantera's predictions cover multiple areas from RWA to NFTs, showcasing the diversity and potential of the industry. Despite facing technological and market uncertainties, these trends provide clear directions for investors and developers.
In the coming years, competition in the crypto industry will become fiercer, and innovation will occur more frequently. Pantera's eight predictions paint a picture of a 2025 full of opportunities.
