These significant events and trends will jointly promote the standardization, technological innovation, and mainstreaming of the market, accelerating the deep integration of the crypto industry with the global financial system.
2025 is considered a pivotal year for the maturation and standardization of the crypto industry. A series of significant events and technological breakthroughs will push the market into a new phase, while having far-reaching implications for the global financial system. Below are eight major events in the crypto industry to watch in 2025, along with their background and impact.
One, Trump's new government team takes office: A turning point for crypto market regulation
Trump's second term is expected to bring new directions for U.S. financial regulation, particularly in policy-making at the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The new leadership may adopt a more open and flexible regulatory approach, promoting market development.
Background
1. CFTC's promotion
More commodity-like crypto assets will come under regulatory scrutiny: The CFTC may classify more mainstream crypto assets (such as Solana and Polygon) as commodities, clarifying their regulatory framework.
Driving the expansion of the crypto derivatives market: The CFTC may accelerate the approval of more crypto futures and options trading, providing institutional investors with a broader range of hedging tools.
Global Cooperation: Strengthening cooperation with regulatory agencies in other countries to promote compliance and standardization of cross-border transactions.
2. SEC's Shift
Expansion of spot ETFs: Following the approval of Bitcoin and Ethereum spot ETFs, more ETFs for mainstream assets (like Solana and Hedera) may be approved, further driving capital inflows.
Stablecoin regulatory framework implementation: Stablecoins may be categorized under a 'payment tool' framework, facilitating the integration of mainstream payment and settlement systems.
3. Joint action of CFTC and SEC
Launching 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 significant institutional capital.
Industry reshuffling: Stricter compliance requirements may eliminate some small and medium-sized projects, leading the market towards a more centralized and mature direction.
Two, Ethereum Dencun upgrade and Pectra technological innovation
Ethereum will undergo multiple technological upgrades in 2025, including the full implementation of Danksharding and an upgrade named 'Pectra.' These technological improvements will significantly enhance Ethereum's scalability and user experience.
Background
Account abstraction (EIP-7702): Simplifying user operations and supporting complex decentralized applications (DApps).
Zero-knowledge proof support (EIP-2537): Enhancing privacy and scalability.
Validator staking limits increased (EIP-7251): Improving network efficiency and facilitating institutional participation in staking.
Data availability sampling (PeerDAS): Reducing Layer-2 transaction costs, promoting ecosystem expansion.
Impact
Attracting more developers and users into the Ethereum ecosystem.
Driving further development of decentralized finance (DeFi) and the NFT market.
Three, the global stablecoin regulatory framework is implemented
In 2025, the G20 is expected to finalize a global regulatory framework for stablecoins, which will have a major impact on the issuance, reserve requirements, and cross-border payment applications of stablecoins.
Background
Funding Dynamics: In 2024, financing 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 capitalization has surpassed $1 billion, driving the integration of stablecoin payments with traditional payments.
Regional Regulation: The EU's MiCA regulations and Hong Kong's stablecoin sandbox program will be fully implemented in 2025.
Impact
International payments accelerate in prevalence: Stablecoins will play an important role in high-inflation areas and international trade.
Market Size Expansion: The market capitalization of stablecoins is expected to exceed $400 billion, becoming the fastest-growing segment in the crypto space.
Four, the 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 integration will give rise to multiple new technologies and applications.
Background
1. Decentralized Autonomous Chatbots (DACs): Blockchain-based AI chatbots can manage assets independently and perform complex tasks.
2. AI Wallet: AI agents will support autonomous investment and payment functions.
3. Verification and Privacy Protection: The combination of AI technology and blockchain ensures the authenticity and privacy of interactions.
4. AI Agent: Virtual serves as a new generation of AI and blockchain protocol, driving the application of AI in the metaverse and Web3 through rapid deployment, autonomous agents, and plug-and-play infrastructure, attracting widespread community engagement and investment support. Eliza, as the world's first chatbot, laid the theoretical foundation for human-computer interaction, providing important inspiration and historical grounding for the logic and functionality 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 to lower the technical barriers of Web3, enhance user privacy and security, while promoting the integrated development of the virtual economy and the real economy. It is expected that by 2025, more mainstream applications and technological breakthroughs will be born, leading the industry towards maturity.
Five, the 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 more assets may enter the ETF space in 2025.
Background
Capital inflow: 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 are primarily concentrated in November 2024, with the final approval deadline expected in early August 2025. Meanwhile, institutions like Canary Capital and Bitwise have submitted applications for spot XRP ETFs to the SEC.
Impact
Mainstreaming Accelerates: The popularization of ETFs will enhance market liquidity and transparency.
More institutional participation: Traditional institutional funds will flow in on a large scale.
Sixth, the breakthrough of real-world asset (RWA) tokenization
Real-world asset tokenization (RWA) achieved significant milestones in 2024, and the market size may further expand in 2025.
Background
2024 Lockup Volume: The total market value of RWA has reached $60 billion.
Key Projects: Ondo Finance, Maple Finance, and Centrifuge are driving asset tokenization.
Stablecoin Market Capitalization: As of March 2024, stablecoins, as the largest segment of RWA, have a market capitalization exceeding $150 billion.
Tokenized Financial Products: Institutions such as BlackRock, Franklin Templeton, and Ondo Finance have launched their own tokenized financial products.
Impact
Market Size Breakthrough: RWA lockup volume is expected to exceed $200 billion.
More Asset Classes: The tokenization of stocks, real estate, and commodities will accelerate.
Seven, the revival of NFTs
NFTs (non-fungible tokens) are gradually transitioning from initial art collectibles and speculative tools to more practical on-chain tools. In 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 a 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 cooperation: Projects like Sofamon combine NFTs with the emoji market to realize economic value development of digital identities and on-chain wearable devices.
Technology and industry support: NFTs exhibited higher technological flexibility in 2024, being used to tag, transfer, and evaluate digital assets and real-world assets.
Impact
Promoting the maturation of the Web3 ecosystem: The practicalization of NFTs injects new vitality into the Web3 ecosystem through the integration of identity management, membership rights, and cross-industry innovative applications.
Reinventing 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 become important tools for intellectual property protection, 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 closer, providing higher transparency and liquidity to capital markets.
The investment market will be more active and standardized in 2025, with NFTs no longer being merely speculative tools but asset classes supported by long-term value.
Eight, DeFi 2.0: Enhancing capital efficiency and compliance
DeFi protocols will further develop in 2025 through enhanced capital efficiency, the introduction of on-chain credit, and the integration of RWA.
Background
DeFi protocols significantly improved capital efficiency in 2024 by optimizing funding utilization models through innovative mechanisms. Traditional DeFi protocols (like Aave, Compound) rely on high collateral rate mechanisms, leading to low capital efficiency, while emerging protocols adopt the Protocol-Owned Liquidity (POL) model, reducing dependence on external capital by holding liquidity pool assets or introducing lock-up mechanisms. For instance, 'liquidity lock rewards' from Balancer and Curve significantly enhance liquidity stability.
The introduction of on-chain credit is an important direction for DeFi development in 2024, assessing credit through users' on-chain behaviors (such as transaction and repayment records) to lower collateral requirements and release more capital liquidity. For example, credit scoring protocols like Arcx and Spectral have begun to be applied across multiple lending platforms, while mainstream protocols like Aave and Maple Finance are testing low-collateral or no-collateral lending models, introducing new capital release pathways 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 added U.S. Treasuries and corporate bonds as collateral, leading to a more than 20% increase in its Dai stablecoin supply. Additionally, Ondo Finance focuses on the tokenization of U.S. Treasuries, with its locked amount exceeding $600 million.
Hyperliquid's innovative token standards HIP-1 and HIP-2 enhance the utility and liquidity of tokens. HIP-1 allows users to create fungible tokens directly linked to on-chain spot order books, elevating tokens to specialized financial instruments. Compared to the ERC-20 standard, it ensures immediate tradability and high performance, specifically designed for financial assets.
Impact
Enhancing capital efficiency: POL and dynamic lending rates will attract more capital inflows, driving the total locked value in DeFi to exceed $300 billion in 2025.
On-chain credit reshapes lending: The proliferation of on-chain credit lowers collateral thresholds, promoting a substantial increase in low-collateral lending and attracting more users and funds.
RWA tokenization expands asset classes.
Accelerated compliance and institutional participation: The introduction of compliance frameworks attracts institutional capital, promoting the diversification of DeFi and strengthening 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 the standardization, technological innovation, and mainstreaming of the market, while attracting more traditional institutions and retail users, accelerating the deep integration of the crypto industry with the global financial system.
