1. Comprehensive rollout of central bank digital currency (CBDC)
As central bank digital currency (CBDC) research and testing worldwide enter a rapid development phase, 2025 is expected to see the comprehensive rollout and promotion of CBDCs. Currently, China's digital renminbi (e-CNY) has entered the pilot phase, while the EU, Americas, and other Asian countries are also accelerating the advancement of relevant plans. CBDCs not only help countries control monetary policy but also provide an accelerator for the widespread adoption of blockchain technology.
Expected impact: The launch of CBDCs may have a dual effect on the crypto market. On one hand, it may further regulate the development of the crypto market; on the other hand, it will promote the globalization of digital currencies and stimulate innovative applications of blockchain technology. For investors, there may be more institutional and individual users starting to engage with and use digital currencies, thereby increasing market demand.
2. Comprehensive upgrade of Ethereum 2.0
The comprehensive upgrade plan of Ethereum 2.0 has been underway since 2020, aiming to replace the traditional Proof of Work (PoW) with a more efficient consensus mechanism (Proof of Stake, PoS). By 2025, various upgrades of Ethereum will be fully implemented, including the implementation of Sharding, significant improvements in scalability, and a notable reduction in transaction costs.
Expected impact: This will fundamentally change the ecology of the Ethereum network, enabling it to handle large-scale transaction requests more efficiently. As one of the largest smart contract platforms globally, the rollout of Ethereum 2.0 will have a tremendous impact on DeFi, NFTs, and various blockchain applications. Ethereum's price is also expected to experience a new round of increase against this backdrop, becoming one of the most promising assets in the market.
3. Further development of decentralized finance (DeFi)
Decentralized finance (DeFi) has developed rapidly in the past few years. Although it faces some market adjustments in 2024, by 2025, DeFi will welcome a more mature ecological construction, with technology becoming safer and more compliant, and participants gradually expanding from retail to institutional.
Expected impact: DeFi will break the barriers of the traditional financial system, allowing more individuals and institutions to participate in global financial activities equally and at low cost. By 2025, with the gradual maturation of technology and policy support, DeFi is expected to usher in a new wave of development, attracting more capital inflows and driving up token prices.
4. Explosive applications of Web 3.0
As one of the core application scenarios of blockchain technology, Web 3.0 may experience a real explosion by 2025. By then, applications like blockchain, decentralized identity, decentralized storage, and decentralized social networking will fundamentally change the way we access the internet and interact with information. As more and more enterprises and developers join the construction of Web 3.0, new business models and profit opportunities will emerge.
Expected impact: The realization of Web 3.0 will bring enormous investment opportunities, especially for innovative projects in decentralized technology, NFTs, DAOs, and other fields. As investors, if you can position yourself in Web 3.0-related tokens in advance, you may see a massive explosion in returns by 2025.
5. Stricter regulation of crypto assets, acceleration of compliance processes
As the cryptocurrency market matures gradually, governments worldwide will increase regulatory scrutiny over crypto assets, with stricter compliance policies expected by 2025. The introduction of these regulatory policies will not only standardize the crypto market but may also bring greater stability and legitimacy to the market.
Expected impact: Clear regulatory policies will help eliminate market uncertainty and attract more institutional investors to enter the market. In particular, the global regulatory compliance may further promote the mainstreaming process of the crypto market, bringing more trust and capital inflow to the market.