Written by: Lei, Golden Finance
2025 is considered a pivotal year for the maturation and normalization of the crypto industry. A series of significant events and technological breakthroughs will push the market into a new phase while having a profound impact on the global financial system. Here are eight major events in the crypto industry to watch in 2025, along with their background and implications.
1. Trump's New Government Team Takes Office: A Turning Point for Crypto Market Regulation
Trump's second term is expected to bring a new direction to U.S. financial regulation, particularly in the policymaking of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The new leadership may adopt a more open and flexible regulatory attitude, promoting market development.
Background
1. Advancement by CFTC
More Commodity-type Crypto Assets Included in Regulatory Scope: The CFTC may classify more mainstream crypto assets (such as Solana and Polygon) as commodities, clarifying their regulatory framework.
Promoting the Expansion of the Crypto Derivatives Market: The CFTC may accelerate the approval of more crypto futures and options trading, providing institutional investors with broader hedging tools.
Global Cooperation: Strengthening cooperation with regulatory agencies in other countries to promote compliance and standardization of cross-border transactions.
2. Transformation of the SEC
Expansion of Spot ETFs: Following the approval of Bitcoin and Ethereum spot ETFs, more mainstream asset ETFs (such as Solana and Hedera) may be approved, further driving capital inflows.
Implementation of Stablecoin Regulatory Framework: Stablecoins may be included in the 'payment tool' framework, facilitating the integration of mainstream payment and settlement systems.
3. Joint Action of CFTC and SEC
Launch of a Unified Classification Standard for Crypto Assets.
Facilitating smoother entry of institutional funds into the crypto market.
Impact
Increased Market Transparency: A clear regulatory framework will reduce market uncertainty and attract massive institutional capital inflows.
Industry Restructuring: Stricter compliance requirements may eliminate some small and medium-sized projects, leading the market towards a more centralized and mature direction.
2. Ethereum Dencun Upgrade and Pectra Technological Innovation
Ethereum will undergo several technological upgrades in 2025, including the full implementation of Danksharding and an upgrade called 'Pectra'. These technological improvements will significantly enhance Ethereum's scalability and user experience.
Background
Account Abstraction (EIP-7702): Simplifying user operations to support complex decentralized applications (DApp).
Zero-Knowledge Proof Support (EIP-2537): Enhancing privacy and scalability.
Validator Staking Cap Increase (EIP-7251): Improving network efficiency and facilitating institutional participation in staking.
Data Availability Sampling (PeerDAS): Reducing Layer-2 transaction costs and promoting ecosystem expansion.
Impact
Attracting more developers and users into the Ethereum ecosystem.
Promoting further development of decentralized finance (DeFi) and the NFT market.
3. Implementation of Global Stablecoin Regulatory Framework
In 2025, the G20 is expected to complete a unified regulatory framework for global stablecoins, which will have a significant impact on the issuance, reserve requirements, and cross-border payment applications of stablecoins.
Background
Funding Dynamics: In 2024, funding in the stablecoin sector reached $1.86 billion, with Stripe acquiring Bridge Network for $1.1 billion.
Traditional Institutions Entering the Market: PayPal's PYUSD market cap has exceeded $1 billion, promoting the integration of stablecoin payments with traditional payments.
Regional Regulation: The EU's MiCA regulations and Hong Kong's stablecoin sandbox plan will be fully implemented in 2025.
Impact
International Payments Accelerate Popularity: Stablecoins will play an important role in high-inflation regions and international trade.
Market Size Expansion: The market value of stablecoins is expected to exceed $400 billion, becoming the fastest-growing sector in the crypto space.
4. Deep Integration of AI and Blockchain
The combination of Artificial Intelligence (AI) and blockchain is leading technological innovation, especially in the fields of AI wallets, decentralized AI agents, and AI training networks. In 2025, this fusion will give rise to multiple new technologies and applications.
Background
1. Decentralized Autonomous Chatbots (DACs): Blockchain-based AI chatbots can autonomously manage assets and complete complex tasks.
2. AI Wallet: AI agents will support autonomous investment and payment functions.
3. Authentication and Privacy Protection: The combination of AI technology and blockchain ensures the authenticity and privacy of interactions.
4. AI Agent: Virtual, as a new generation of AI and blockchain protocol, promotes the application of AI in the metaverse and Web3 through rapid deployment, autonomous agents, and plug-and-play infrastructure, attracting widespread community participation and investment support. Meanwhile, Eliza, as the world's first chatbot, laid the theoretical foundation for human-computer interaction, providing important inspiration and historical accumulation for the logic and functions of modern AI agents.
5. Tech Giants like Google and Apple Launch AI Agent Products. Decentralized AI Networks (like Fetch.ai) Become Market Hotspots.
Impact
The combination of AI and blockchain helps lower the technological threshold of Web3, enhances user privacy and security, and promotes the integrated development of the virtual and real economies. By 2025, this fusion is expected to give rise to more mainstream applications and technological breakthroughs, leading the industry towards maturity.
5. Global Expansion of Bitcoin and Ethereum ETFs
The approval of spot Bitcoin and Ethereum ETFs has brought capital inflows and mainstream recognition to the crypto market, and in 2025, more assets may enter the ETF space.
Background
Capital Inflows: As of December 2024, the management scale of Bitcoin ETFs has exceeded $100 billion.
Expansion to Other Assets: Several institutions have submitted applications for Solana ETFs, including Bitwise, VanEck, 21Shares, and Canary Capital. These applications were mainly submitted in November 2024, with the final approval deadline expected in early August 2025. At the same time, institutions like Canary Capital and Bitwise have submitted applications for spot XRP ETFs to the SEC.
Impact
Acceleration of Mainstream Adoption: The popularization of ETFs will enhance liquidity and transparency in the market.
More Institutional Participation: Traditional institutional capital will flood in.
6. Breakthroughs in Real-World Asset (RWA) Tokenization
Real-world asset tokenization (RWA) achieved significant results in 2024, and the market size may further expand in 2025.
Background
2024 Locked Amount: The total market value of RWA has reached $60 billion.
Major Projects: Ondo Finance, Maple Finance, and Centrifuge are pushing for assets to be on-chain.
Stablecoin Market Cap: As of March 2024, stablecoins, as the largest segment of RWA, have a market cap exceeding $150 billion.
Tokenized Financial Products: Institutions like BlackRock, Franklin Templeton, and Ondo Finance have launched their own tokenized financial products.
Impact
Market Size Breakthrough: The locked amount of RWA is expected to exceed $200 billion.
More Asset Categories: Tokenization of assets including stocks, real estate, and commodities will accelerate.
7. NFT Renaissance
NFTs (Non-Fungible Tokens) are gradually transforming from initial art collectibles and speculative tools into more practical on-chain tools. By 2025, with the development of blockchain technology and the expansion of the Web3 ecosystem, the potential of NFTs in practical applications will be more widely explored.
Background
Practicality Becomes the Core Driver: NFTs are no longer limited to collectible value but are gradually integrated into practical application scenarios, such as on-chain identity (DID), in-game assets, memberships, and consumer rewards.
Emerging Markets and Cross-Industry Collaboration: Projects like Sofamon combine NFTs with the emoji market to realize the economic value development of digital identities and on-chain wearable devices.
Technological and Industry Support: NFTs demonstrated higher technological flexibility in 2024, being used for marking, transferring, and evaluating digital and real assets.
Impact
Promoting the Maturation of the Web3 Ecosystem: The practical application of NFTs injects new vitality into the Web3 ecosystem through the integration of identity management, membership rights, and cross-industry innovative applications.
Reshaping Brand and Consumer Relationships: The participation of traditional brands (like IWC) indicates that NFTs have become an important tool for brands to redefine user experience and brand loyalty.
Promoting the Protection and Monetization of Intellectual Property: Projects like Story Protocol demonstrate that NFTs can be an important tool for protecting intellectual property, especially in combating counterfeit products and empowering creators.
Accelerating the Integration of On-Chain and Off-Chain Economies: Through the tokenization and evaluation capabilities of NFTs, the connection between crypto assets and the real economy will become tighter, providing higher transparency and liquidity for capital markets.
The Activity and Normalization of Investment Markets: The NFT market in 2025 will be more regulated, with NFTs no longer being mere speculative tools but asset classes supported by long-term value.
8. DeFi 2.0: Enhancements in Capital Efficiency and Compliance
DeFi protocols will further develop in 2025 by enhancing capital efficiency, introducing on-chain credit, and integrating RWA.
Background
DeFi protocols significantly enhanced capital efficiency in 2024 by optimizing funding utilization through innovative mechanisms. Traditional DeFi protocols (such as Aave and Compound) rely on high collateralization rates, resulting in low capital efficiency, while emerging protocols adopt a Protocol-Owned Liquidity (POL) model, reducing reliance on external capital by holding liquidity pool assets or introducing locking mechanisms. For example, Balancer and Curve's 'liquidity locking rewards' significantly improved liquidity stability.
The introduction of on-chain credit is an important direction for DeFi development in 2024, evaluating credit through users' on-chain behavior (such as transaction and repayment records), thereby reducing collateral requirements and releasing more capital liquidity. For instance, credit scoring protocols like Arcx and Spectral have begun to be applied on multiple lending platforms, while mainstream protocols like Aave and Maple Finance are testing low-collateral or no-collateral lending models, bringing new paths for capital release in the DeFi space.
The integration of real-world assets (RWA) is another highlight of DeFi development in 2024, enhancing capital efficiency by tokenizing traditional assets such as bonds, real estate, and receivables. For example, MakerDAO has added U.S. Treasury bonds and corporate bonds as collateral, resulting in a supply increase of its Dai stablecoin by over 20%. Additionally, Ondo Finance focuses on the tokenization of U.S. Treasury bonds, with its locked amount exceeding $600 million.
Hyperliquid's innovative token standards HIP-1 and HIP-2 enhance the practicality and liquidity of tokens. HIP-1 allows users to create fungible tokens directly tied to on-chain spot order books, elevating tokens to specialized financial instruments. Compared to the ERC-20 standard, it ensures instant tradability and high performance, specifically designed for financial assets.
Impact
Increased Capital Efficiency: POL and dynamic lending rates will attract more capital inflows, pushing the total value locked in DeFi to exceed $300 billion in 2025.
On-chain credit reshapes lending: The popularization of on-chain credit reduces collateral thresholds, promoting a doubling of low-collateral lending scale, attracting more users and capital participation.
RWA tokenization expands asset categories.
Compliance and Institutional Participation Accelerate: The introduction of compliance frameworks attracts institutional funds, promoting diversified development in DeFi and reinforcing its deep integration with traditional finance.
Summary
2025 will be a year of maturation and diversification for the crypto industry. These significant events and trends will jointly promote market normalization, technological innovation, and mainstream adoption, while attracting more traditional institutions and retail users, accelerating the deep integration of the crypto industry with the global financial system.
