Written by: Lei, Golden Finance
2025 is considered a crucial year for the crypto industry to move towards maturity and standardization. A series of significant events and technological breakthroughs will push the market into a new stage, 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 impact.
1. New Trump Administration Takes Office: A Turning Point for Crypto Market Regulation
Trump's second term is expected to bring new directions for U.S. financial regulation, especially 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 of the CFTC
More Commodity-Based Crypto Assets Included in Regulation: The CFTC may classify more mainstream crypto assets (like Solana and Polygon) as commodities, clarifying their regulatory frameworks.
Promoting the Expansion of the Crypto Derivatives Market: The CFTC may accelerate approvals for more crypto futures and options trading, providing broader hedging tools for institutional investors.
Global Cooperation: Strengthening cooperation with regulatory agencies in other countries to promote compliance and standardization of cross-border transactions.
2. SEC's Transformation
Expansion of Spot ETFs: Following the approval of Bitcoin and Ethereum spot ETFs, more mainstream assets' ETFs (like Solana and Hedera) may be approved, further driving capital inflow.
Stablecoin Regulatory Framework Implementation: Stablecoins may be incorporated into the 'payment tools' framework, facilitating the integration of mainstream payment and settlement systems.
3. Joint Actions of CFTC and SEC
Launch of a Unified Crypto Asset Classification Standard.
Promoting smoother entry of institutional funds into the crypto market.
Impact
Increased Market Transparency: Clear regulatory frameworks will reduce market uncertainty and attract massive institutional funds.
Industry Restructuring: Stricter compliance requirements may eliminate some small and medium-sized projects, leading the market towards a more concentrated and mature direction.
2. Ethereum Dencun Upgrade and Pectra Technological Innovation
Ethereum is set to undergo multiple technical upgrades in 2025, including the full implementation of Danksharding and an upgrade named 'Pectra.' These technical 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 Stake Limit 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 NFT markets.
3. Global Stablecoin Regulatory Framework Implementation
By 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
Financing Dynamics: In 2024, stablecoin financing reached $1.86 billion, with Stripe acquiring Bridge Network for $1.1 billion.
Traditional Institutions Entering the Market: PayPal's PYUSD market value has surpassed $1 billion, promoting the integration of stablecoin payments with traditional payments.
Regional Regulation: The EU's MiCA regulation and Hong Kong's stablecoin sandbox program will be fully implemented in 2025.
Impact
Accelerated International Payment Adoption: Stablecoins will play an important role in high-inflation regions and international trade.
Market Scale Expansion: The market value of stablecoins is expected to exceed $400 billion, becoming the fastest-growing segment in the crypto space.
4. Deep Integration of AI and Blockchain
The combination of artificial intelligence (AI) and blockchain is leading technological innovation, particularly in the fields of AI wallets, decentralized AI agents, and AI training networks. By 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 perform complex tasks.
2. AI Wallets: 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 next-generation AI and blockchain protocol, drives 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. 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 technical barriers of Web3, enhancing user privacy and security, while promoting the integration of the virtual and real economies. By 2025, this is expected to spawn 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 brings capital inflow and mainstream recognition to the crypto market, with more assets likely entering the ETF space by 2025.
Background
Capital Inflow: As of December 2024, the management scale of Bitcoin ETFs has exceeded $100 billion.
Expansion to Other Assets: Multiple institutions have submitted applications for Solana ETFs, including Bitwise, VanEck, 21Shares, and Canary Capital. These applications are primarily submitted in November 2024, with the expected final approval deadline 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
Accelerated Mainstreaming: The popularity of ETFs will enhance market liquidity and transparency.
Increased Institutional Participation: Traditional institutional funds will flow in on a large scale.
6. Breakthroughs in Real-World Asset (RWA) Tokenization
Tokenization of Real-World Assets (RWA) achieved significant results in 2024, and the market scale may further expand in 2025.
Background
2024 Total Locked Value: The total value of the RWA market has reached $60 billion.
Major Projects: Ondo Finance, Maple Finance, and Centrifuge are driving asset tokenization.
Stablecoin Market Value: As of March 2024, stablecoins, as the largest segment of RWA, have a market value exceeding $150 billion.
Tokenized Financial Products: Institutions such as BlackRock, Franklin Templeton, and Ondo Finance have launched their own tokenized financial products.
Impact
Market Scale Breakthrough: The RWA locked value is expected to surpass $200 billion.
More Asset Classes: The tokenization of assets including stocks, real estate, and commodities will accelerate.
7. NFT Revival
NFTs (Non-Fungible Tokens) are gradually transforming from initial art collectibles and speculative tools into more practical on-chain tools. By 2025, as blockchain technology develops and the Web3 ecosystem expands, the potential of NFTs in real-world applications will be more widely explored.
Background
Practicality Becomes the Core Driver: NFTs are no longer limited to collectible value but are gradually integrating into real application scenarios, such as on-chain identity (DID), in-game assets, membership rights, and consumer rewards.
Emerging Markets and Cross-Border Collaboration: Projects like Sofamon are realizing the economic value of digital identity and on-chain wearable devices by combining NFTs with the emoji market.
Technology and Industry Support: NFTs show greater technological flexibility in 2024, being used to mark, transfer, and assess digital and real-world assets.
Impact
Promoting the Maturity of the Web3 Ecosystem: The practical application of NFTs injects new vitality into the Web3 ecosystem by integrating identity management, membership rights, and cross-industry innovative applications.
Redefining Brand and Consumer Relationships: The involvement 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 indicate that NFTs can become important tools 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 valuation capabilities of NFTs, the connection between crypto assets and the real economy will become tighter, providing greater transparency and liquidity for capital markets.
Activation and Standardization of the Investment Market: The NFT market in 2025 will be more standardized, with NFTs no longer being merely speculative tools, but rather asset classes with long-term value support.
8. DeFi 2.0: Enhancing 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 through innovative mechanisms optimizing capital utilization. Traditional DeFi protocols (like Aave and Compound) rely on high collateral rates, leading to low capital efficiency, while emerging protocols have adopted Protocol-Owned Liquidity (POL) models to reduce dependence 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 based on users' on-chain behavior (such as transaction and repayment records) to lower collateral requirements and free up more capital liquidity. For instance, credit scoring protocols like Arcx and Spectral have begun to be applied in multiple lending platforms, while mainstream protocols like Aave and Maple Finance are testing low-collateral or no-collateral lending models, providing new paths for capital release in the DeFi space.
The integration of real-world assets (RWA) is another highlight of DeFi development in 2024, tokenizing traditional assets like bonds, real estate, and receivables to enhance capital efficiency. For example, MakerDAO has added U.S. Treasury and corporate bonds as collateral, increasing the supply of its Dai stablecoin by over 20%. In addition, Ondo Finance focuses on the tokenization of U.S. Treasuries, with its locked value exceeding $600 million.
Hyperliquid's innovative token standards HIP-1 and HIP-2 enhance the utility and liquidity of tokens, with HIP-1 allowing 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 instant tradability and high performance, specifically designed for financial assets.
Impact
Improved Capital Efficiency: POL and dynamic lending rates will attract more funds, pushing the total value locked in DeFi to exceed $300 billion by 2025.
On-Chain Credit Reshaping Lending: The popularization of on-chain credit lowers collateral requirements, promoting a significant increase in low-collateral lending and attracting more users and funds.
RWA Tokenization Expands Asset Classes.
Acceleration of Compliance and Institutional Participation: The introduction of compliance frameworks will attract institutional funds, promoting diverse development in DeFi and strengthening its deep integration with traditional finance.
Summary
2025 will be a year for the crypto industry to move towards maturity and diversification. These significant events and trends will collectively drive the standardization of the market, technological innovation, and mainstream acceptance, while attracting more traditional institutions and retail users, accelerating the deep integration of the crypto industry with the global financial system.
