Leading blockchain analytics platform Messari has released its annual forecast for 2025, predicting significant changes in cryptocurrency markets, AI applications, and NFT ecosystems. Here are the platform’s key takeaways:

Ethereum to Surpass Solana in 2025
Messari predicts that Ethereum (ETH) will outperform Solana (SOL) throughout 2025 due to several factors:

  • ETF Inflows: While Ethereum ETFs are expected to attract institutional investors, similar ETFs for Solana may have a harder time gaining traction.

  • FTX Liquidation: Over 11 million SOL will be removed from FTX property in March, increasing selling pressure.

  • Market Dynamics: Ethereum could attract more buyers in 2025 after a tough 2024, while Solana could face selling pressure as crypto-based investors turn to alternative assets.

Messari predicts that Ethereum’s strong performance against Solana will continue and the ETH/SOL ratio will continue to fall.

AI Tool Frameworks to Reach Peak in Q1 2025
Messari believes that AI tools will peak in the first quarter of 2025, but then their relevance will wane:

  • Lack of Product-Market Fit: AI tools, unlike previous blockchain innovations, lack long-term demand and a clear user base.

  • Speculative Cycle: As markets begin to realize the limited benefits of AI tools, excitement around these tools will wane.

Messari predicts that popular NFT collection Pudgy Penguins will overtake CryptoPunks as the PFP (profile picture) collection by 2025.

The Value Gain and Popularity of Pudgy Penguins
Pudgy Penguins delivers direct value to its owners, generating value through methods such as airdrops (PENGU) and external protocol distributions. Additionally, the brand’s rapid expansion into Web3 and mainstream markets is expected to increase its cultural relevance and market value. The launch of the Abstract Chain will create additional value streams for the Pudgy Penguins ecosystem.

Peaq Will Outperform All Tier 2 Solutions
Fast-rising blockchain project Peaq is expected to surpass other Layer 2 (L2) solutions by 2025:

  • Market Positioning: Peaq currently ranks in the top 10 among L2 projects with a fully diluted valuation (FDV) of $2.1 billion.

  • Competitive Advantage: Peaq’s unique approach to network and ecosystem development provides an advantage over traditional L2 solutions.

VIRTUAL’s Valuation to Surpass TAO
Messari predicts VIRTUAL’s FDV will surpass TAO’s valuation in the first quarter of 2025:

  • TAO Supply Pressure: The value of TAO, which has a daily emission of $3.3 million, may remain stable until the dTAO mechanism relieves supply pressure.

  • VIRTUAL Growth: An increasing amount of VIRTUAL tokens are locked in liquidity pools (LPs), which supports its growth.

Hyperliquid’s Growth Could Slow Down
While Hyperliquid is expected to continue to be a strong trend in 2025, its performance may be priced in from the last quarter of 2024:

  • Valuation Metrics: Hyperliquid’s FDV is currently a quarter of Solana’s, half of Coinbase’s market cap, and on par with FTT’s peak FDV, suggesting limited room for growth without new developments.

Messari will continue to follow these developments and carefully monitor market expectations and forecasts for 2025.