Dragonfly Capital Managing Partner Haseeb Qureshi outlined his predictions for cryptocurrency in 2025 through X, forecasting transformative trends that could significantly alter the cryptocurrency landscape. Here are detailed insights into each key area Qureshi addressed:
Haseeb Qureshi's 2025 Cryptocurrency Predictions
#1 The Boundaries Between L1/L2 Are Blurring: In his 2025 cryptocurrency predictions, Qureshi foresees the distinction between Layer 1 and Layer 2 networks gradually disappearing and predicts significant consolidation within the blockchain industry. 'The era of differentiating L1 and L2 based on technical capabilities is over. The key now is to carve out niche markets and enhance user stickiness,' he claims.
This shift means that future strategic market positioning and user experience will outweigh pure technological innovation. He further asserts: 'EVM will not only maintain dominance but will also continue to expand with the push from platforms like Base, Monad, and Berachain.' Qureshi attributes this growth to the vast repository of Solidity training data, which will enable language models to write advanced application code by 2025, marking a significant shift in the blockchain ecosystem towards AI-driven development.
#2 Improved Token Issuance: Qureshi's predictions for 2025 also foresee a revolution in token distribution mechanisms. He believes the industry is moving away from large-scale airdrops, as airdrops often prioritize quantity over quality of participation. He notes: 'We will see a more strategic approach where token distribution aligns with long-term user engagement and project viability.'
For projects with clear metrics and defined goals, tokens will be used as tools to boost user retention and incentivize meaningful interactions. Meanwhile, projects lacking specific metrics may turn to structured crowdfunding to build and maintain dedicated user bases.
Moreover, he predicts that 'the market share of memecoins will continue to be seized by AI agent coins. I believe this is a shift from financial nihilism to financial over-optimism. (Yes, I coined this term.)'
#3 Acceleration of Stablecoin Adoption: Stablecoins will become the cornerstone of business transactions for small and medium-sized enterprises (SMBs) seeking reliable and instant financial settlements. 'We are about to see widespread adoption of stablecoins by SMBs, not only because of their high efficiency but also due to increasing institutional trust and participation,' Qureshi points out.
He expects banks to take significant actions, including launching new stablecoins, as financial institutions seek to occupy this emerging market. Additionally, he commented: 'With Howard Lutnick assuming the role of Secretary of Commerce, institutional hesitation will diminish, ensuring Tether maintains its lead in an increasingly competitive landscape.'
He added: 'It is expected that Ethena will absorb more capital, especially as treasury yields continue to decline over the next year. When the opportunity cost of capital decreases, the base trading yield becomes more attractive.'
#4 Cautious Regulatory Progress: Qureshi's predictions for cryptocurrency in 2025 suggest a mixed regulatory outlook. According to him, 2025 will witness the evolution of regulation, with the U.S. potentially passing specific legislation regarding stablecoins.
However, comprehensive market reforms like the Financial Innovation Technology Act (FIT21) may face delays. He predicts: 'While we see the regulatory framework for stablecoins strengthening, broader fintech reforms will lag behind, resulting in a fragmented regulatory environment.'
Furthermore, Qureshi anticipates that under the Trump administration, Fortune 100 companies will be more willing to offer cryptocurrencies to consumers. 'Trump's inauguration will create a regulatory gala until clear rules and enforcement priorities are established. During this period, we expect to see a significant expansion of the integration between cryptocurrencies and Web2 platforms,' he commented.
#5 AI Agents Will Surpass Hype: A significant portion of Qureshi's predictions for cryptocurrency in 2025 involves the role of AI agents in reshaping the cryptocurrency landscape. He criticized the current state of AI agents, stating: 'Today's AI agents are essentially complex chatbots related to cryptocurrencies. They lack true agency and are designed primarily for interaction rather than autonomous operation.'
Despite these constraints, he believes that the role of artificial intelligence in the crypto space will grow significantly, evolving from novelty to necessity. He predicts: 'The ability to automate and enhance blockchain operations with artificial intelligence will lead to a renaissance in software development, greatly lowering the barriers to entry for blockchain applications.'
#6 Cryptocurrency x Artificial Intelligence: Looking Beyond 2025, Qureshi envisions a deeper integration between cryptocurrency and artificial intelligence technologies. 'As we refine our artificial intelligence capabilities and regulatory frameworks, cryptocurrencies will increasingly facilitate the operations of AI, leading to autonomous agents trading and managing their own economies on blockchain networks,' he said. This interaction is expected to radically transform user experiences and operational efficiencies, paving the way for a new era of decentralized and autonomous digital ecosystems.
As of the time of publication, the total cryptocurrency market capitalization stands at $3.31 trillion.
