Author: Alex O’Donnell, CoinTelegraph; Translated by: Tao Zhu, Golden Finance
Several industry executives pointed out that with the catalyst applications of Bitcoin staking, tokenization of real-world assets (RWA), and agent-based artificial intelligence, decentralized finance (DeFi) will reach a turning point in 2025.
In 2024, as investors pour over $100 billion into spot BTC exchange-traded funds (ETFs), the price of Bitcoin will first break $100,000.
"The historical high of Bitcoin will spark new interest in cryptocurrencies from institutions and regulators, and will revitalize the entire cryptocurrency industry in 2025," said Dean Tribble, CEO of first-layer network Agoric Systems.
According to data from DefiLlama, in December, the total locked value (TVL) in DeFi protocols reached $130 billion, close to the ecosystem's historical high of about $175 billion in 2021. Industry executives expect this upward trend to continue next year.
"By 2025, DeFi infrastructure and blue-chip protocols like Aave, Maple, and Maker will be operating on a large scale for over four years," said Jacob Phillips, co-founder and strategic director of Bitcoin staking protocol Lombard.
"These platforms will become reliable places for institutions and new users to use Bitcoin," Phillips said.
Source: DefiLlama
Bitcoin staking
Bitcoin's emerging Layer 2 (L2) scaling networks and DeFi protocol ecosystems are creating unprecedented opportunities for investors to earn from Bitcoin.
"Currently, Bitcoin DeFi accounts for 0.1% of its total asset value. This presents a 300-fold opportunity to develop DeFi on Bitcoin," noted Alexei Zamyatin, co-founder and CEO of Build on Bitcoin, adding:
"We have spoken with dozens of large Bitcoin DeFi users and funds who are eager to leverage their Bitcoin assets to earn yields."
Bitcoin L2s like Babylon and CoreChain pay fees to stakers by locking BTC as collateral to protect their networks.
Currently, liquid staking tokens (LST) representing staking BTC claims are surging. According to data from stakingrewards.com, as of December 19, the total locked value (TVL) of Bitcoin LST reached $2.5 billion.
Matt Hougan, head of research at asset management firm Bitwise, believes that Bitcoin staking ETFs could also gain attention by 2025.
"There is a huge demand for Bitcoin returns. I'm not sure if it will become an ETF structure in the US, but it definitely will in Europe," said Hougan.
Source: Stakingrewards.com
RWA tokenization
Colin Butler, Global Head of Institutional Capital at Polygon, pointed out in August that tokenized real-world assets (RWA)—digital tokens representing claims on any assets from US government bonds to artworks—represent a $30 trillion market opportunity globally.
According to data from RWA.xyz, they have already garnered approximately $14 billion in TVL. Tokenized US Treasury bonds with yields are particularly popular, with a TVL exceeding $3 billion.
"Tokenizing real-world assets like real estate and carbon credits will unleash unprecedented liquidity, and advancements in payments will further simplify cross-border transfers," said Raj Brahmbhatt, CEO of Web3 settlement platform Zeebu.
Even the US Treasury has praised the potential of tokenization in improving liquidity and reducing 'operational and settlement friction.'
Brahmbhatt said: "In the US, with (elected President Donald) Trump's victory, I am very optimistic that the US will become the global leader in this field by the end of this year."
Source: RWA.xyz
Agent-based artificial intelligence
According to CoinGecko, in 2024, the market capitalization of tokens related to agent-based artificial intelligence (machines autonomously pursuing complex goals) will reach nearly $10 billion.
Analysts expect the integration of AI with blockchain technology to transform Web3, creating a future where autonomous AI builds decentralized applications and interacts with human users.
J.D. Seraphine, CEO of AI protocol Raiinmaker, noted that agent-based AI "has proven to be at the core of the industry's future."
Seraphine stated that by 2025, "AI agents are expected to play a more significant role in decentralized communities."
Hougan stated that the potential areas for AI agents are nearly limitless and added:
"It's okay if you don't know exactly what's going to happen, as long as you recognize that what's happening has real potential significance and you want to be involved with it."
