In my previous Ecosystm Insight, I spoke about Web3’s key initiatives in 2024 that caught my attention. As we navigate through the rapidly evolving tech landscape, I’ve chosen to highlight a few trends in the ecosystem that truly excite me – though this list is far from exhaustive. Interestingly, some of the most hyped trends, like the memecoin frenzy and AI agent platforms, didn’t pique my interest enough to dive deeper into.
Here are 7 trends I’ll be keeping an eye on in 2025.
Click here to download “Web3 Evolution: 2025 Trends To Watch” as a PDF.
1. Stablecoins: The Bridge Between Fintech and Crypto
In 2024, a significant shift occurred in how global fintechs view crypto, driven by stablecoins. What started as a collateral tool for crypto trading has now evolved into a proven solution for cross-border payments and remittances. Companies like Stripe, Revolut, Robinhood, and Nubank are expanding their role as crypto gateways, offering on and off-ramps alongside stablecoin-enabled payments. With global payment revenues projected to reach USD 3.3 trillion by 2031, traditional systems still face challenges like high fees, slow settlement times, and inefficiencies – issues that stablecoin rails are now set to address!
Expect more launches and M&A in this space as every web2 fintech becomes “crypto-ready”!
“Whether intentionally or because of their ability to support third-party apps, every fintech will become a crypto gateway. Fintechs will grow in prevalence and may perhaps rival smaller centralised exchanges in crypto holdings.” – PAUL VERADITTAKIT
2. Bringing Real-World Assets to DeFi: Simplifying Complexities
Over 12,500 DeFi pools currently serve around 7 million users, facing challenges such as onboarding, price discovery, liquidity management, and safeguards against arbitrage. It is expected that decentralised secondary marketplaces for trading real-world assets will be launched, aiming to simplify these complexities and potentially attract new users to DeFi.
3. Smart DePINs: The Rise of AI-Driven Coordination
More DePIN projects are expected to integrate AI and agentic computation to automate coordination, optimise demand and supply, and enhance interoperability. AI may also be used for tasks like node selection, choosing light nodes for accessibility and switching to heavier nodes for network reliability and redundancy. Nvidia’s embrace of DePINs like IPFS Filecoin could be a game-changer, with the company recently sharing potential approaches to leveraging decentralised data structures.
4. Web2.5: The Secret to Scaling Web3 Adoption
Tell me it’s crypto without telling me it’s crypto!
Prediction markets hit their stride in 2024, particularly with Polymarket and the elections, where most users didn’t even realise they were using blockchains. This could be the key to scaling web3 – enter web2.5. However, what is more exciting is the rise of the Telegram mini app ecosystem, the Worldcoin app store, and the Solana phone app store. These simple and intuitive web2-like interfaces are slated to bring more new and first-time users to web3 than some of the louder narratives like the AI-driven memecoin frenzy.
5. Proof-of-Humanity: Securing the Digital Self
While Tools for Humanity faced early criticism for scanning irises, the project, which now has over 20 million users, will gain more traction as people recognise the importance of proof-of-humanity. With the rise of AI-generated content and deepfakes, proof-of-humanity is becoming crucial – not just for combating Sybil attacks and frauds. Projects like SpaceID, Sign, and Mocaverse are also developing universal identity systems that enable users to access multi-chain services with a single private key or ID. Verifiable identity and credentialing via blockchains will be one of the most compelling use cases for the technology.
6. NFTs Reimagined: A New Era of Digital Assets
Story Protocol, which raised USD 80 million at a USD 2.25 billion valuation, aims to tokenise the world’s IP, placing originality at the heart of creative exploration and supporting creators. NFTs can be used not only for ID transactions, transfers, ownership, and memberships but also to represent and value assets. We can expect the emergence of many such NFT use cases beyond profile pictures, particularly in loyalty programs, brand memberships, and token-gated experiences. The second coming of NFTs is set for 2025!
7. Web3 Gateways: Wallets Evolve into Comprehensive Platforms
Similar to how browsers serve as gateways to the internet, web3 wallets like Metamask and Phantom are becoming essential entry points to the web3 experience. These wallets will evolve into all-encompassing platforms, integrating dApps and decentralised applications into their feature set. Along with enhanced security, leading wallets will soon offer services such as trading, gaming, minting, and token swapping, all directly within the wallet interface.
Ecosystm Opinion
It’s a reminder of how far we’ve come – and how much further we have to go. Yuval Noah Harari once pointed out that early use cases of the printing press were often conspiracy theories, and early Internet days were filled with chatrooms and adult content. We’re in the early stages of web3, and with each passing day, new use cases emerge.
This space is still unfolding, and it will be fascinating to see where it leads!
2024 was a pivotal year for cryptocurrency, driven by substantial institutional adoption. The approval and launch of spot Bitcoin and Ethereum ETFs marked a turning point, solidifying digital assets as institutional-grade. Bitcoin has evolved into a macro asset, and the ecosystem’s outlook remains robust, with signs of regulatory clarity in the US and increasing broad adoption. High-quality research from firms like VanEck, Messari, Pantera, Galaxy, and a16Z, has further strengthened my conviction.
As a “normie in web3,” my perspective comes from connecting the dots through research, not from early airdrops or token swaps. While the speculative frenzy, rug pulls, and scams at the “casino” end are off-putting, the real potential on the “computer” side of blockchains is thrilling. Events like TOKEN2049 in Dubai and Singapore highlight the ecosystem’s energy, with hundreds of side events now central to the experience.
As the web3 ecosystem evolves, new blockchains, roll-ups, and protocols vie for attention. With 60 million unique wallets in the on-chain economy, adoption is set to expand beyond this base. DeFi transaction volumes have surpassed USD 200B/month, yet the ecosystem remains in its early stages, with only 10 million users.
Despite current fragmentation, the future looks promising. Themes like tokenising real-world assets, decentralised public infrastructure, stablecoins for instant payments, and the convergence of AI and blockchain could reshape finance, identity, infrastructure, and computing. Web3 holds transformative potential, even if not in marketing terms like “unstable” coins or “unreal world assets.”
The Decentralisation Paradox of Web3
Decentralisation may have been a core tenet of web3 at the onset but is also seen as a constraint to scaling or improving user experience in certain instances. I always saw decentralisation as a progressive spectrum and not a binary. It is, however, a difficult north star to maintain, as scaling becomes an actual human coordination challenge.
In Blockchains. We have seen this phenomenon manifest with the Ethereum ecosystem in particular. Of the fifty-plus roll-ups listed on L2 Beat, only Arbitrum and OP Mainnet have progressed beyond Stage 0, with many still not posting fraud proofs to L1. Some high-performance L1s and L2s have deprioritised decentralisation in favour of scaling and UX. Whether this trade-off leads to greater vulnerability or stronger product-market fit remains to be seen – most users care more about performance than underlying technology. In 2025, we’ll likely witness the quiet demise of as many blockchains as new ones emerge.
In Finance. On the institutional side, some aspects of high-value transactions in traditional finance or TradFi, such as custody, need trusted intermediaries to minimise counterparty risk. For web3 to scale beyond the 60-million-odd wallets that participate in the on-chain economy today, we need protocols that marry blockchains’ efficiency, composability, and programmability with the trusted identity and verifiability of the regulated financial systems. While “CeDeFi” or Centralised Decentralised Finance might sound ironical to most in the crypto native world, I expect much more convergence with institutions launching tokenisation projects on public blockchains, including Ethereum and Solana. I like underway pilots, such as one by Chainlink with SWIFT, facilitating off-chain cash settlements for tokenised funds. Some of these projects will find strong traction and scale coupled with regulatory blessings in certain progressive jurisdictions in 2025.
In Infrastructure. While decentralised compute clusters for post-training and inference from the likes of io.net can lower the cost of computing for start-ups, scaling decentralised AI LLMs to make them competitive against LLMs from centralised entities like OpenAI is a nearly impossible order. New metas such as decentralised science or DeSci are exciting because they open the possibility of fast-tracking fundamental research and drug discovery.
Looking Back at 2024: What I Found Exciting
ETFs. BlackRock’s IBIT ETF became the fastest to reach USD 3 billion in AUM within 30 days and scaled to USD 40 billion in 200 days. The institutional landscape now goes beyond traditional ETFs, with major financial institutions expanding digital asset capabilities across custody, market access, and retail integration. These include institutional-grade custody from Standard Chartered and Nomura, market access from Goldman Sachs, and retail integration from fintechs such as Revolut.
Stablecoins. Stablecoin usage beyond trading has continued to grow at a healthy clip, emerging as a real killer use case in payments. Transaction volumes rose from USD 10T to USD 20T in a year, and yes, that is a trillion with a “t”! The current market capitalisation of stablecoins is approximately USD 201.5 billion, slated to triple in 2025, with Tether’s USDT at over 67% market share. We might see new fiat-backed stablecoins being launched this year, such as Ethena’s yield-bearing stablecoin, but I don’t expect USDT’s dominance to change.
RWAs. Even though stablecoins represent 97% of real-world assets on-chain and the dollar value of all other types of assets is still insignificant, the potential market for asset tokenisation is still a staggering USD 1.4T, and with regulatory clarity, even if RWAs on-chain were to quadruple, the resulting USD 50B will be a sliver of the overall opportunity. We can expect more projects in asset classes such as private credit – rwa.xyz is a great dashboard to watch this space.
DePIN. Decentralised public infrastructure across wireless, energy, compute, sensors, identity, and logistics reached a USD 50B market cap and USD 500M in ARR. Key developments include the emergence of AI as a major driver of DePIN adoption, the maturation of supply-side growth playbooks, and the shift in focus toward demand-side monetisation. More than 13 million devices globally contribute to DePINs daily, demonstrating successful supply-side scaling. Notable projects include:
- Helium Mobile: Adding 100k+ subscribers and diversifying revenue streams.
- AI Integration: Bittensor leading decentralised AI with successful subnets.
- Energy DePINs: Glow and Daylight addressing challenges in distributed energy systems.
- Identity Verification: World (formerly Worldcoin) achieving 20 million verified identities.
These trends indicate significant advancements in the web3 ecosystem, and the continued evolution of blockchain technologies and their applications in finance, infrastructure, and beyond holds immense promise for 2025 and beyond.
In my next Ecosystm Insights, I’ll present the trends in 2025 that I am excited about. Watch this space!
The cryptocurrency industry is no longer just a niche market; it’s a burgeoning global financial force, poised to reach a staggering USD 11.7 billion by 2030. Fuelled by rapid technological advancements, evolving regulatory landscapes, and increased mainstream adoption, the sector is facing both unprecedented challenges and exciting opportunities. As blockchain and digital currencies continue to disrupt traditional finance, understanding the key trends driving these changes is essential for anyone navigating the crypto ecosystem.
#1 AI’s Game-Changing Impact on Crypto Exchanges
AI is revolutionising the way crypto exchanges operate – from enhanced efficiency and security to a more personalised user experience.
One of the most significant contributions of AI is the use of automated trading bots. These bots can analyse vast amounts of market data, predict price movements, and execute trades with precision, often outperforming human traders. By operating 24/7 and eliminating emotional biases, AI-powered bots offer a significant advantage in the fast-paced world of cryptocurrency trading.
AI also plays a crucial role in improving security on crypto exchanges. By using machine learning algorithms to monitor and analyse transaction patterns, AI can identify and mitigate the risks of hacks and fraud, which have plagued the cryptocurrency space for years. For example, in 2023 alone, crypto scams led to losses of over USD 5.6 billion in the US.
AI personalises the user experience by offering tailored recommendations based on individual trading behaviour. Additionally, AI performs market sentiment analysis by processing unstructured data from social media, news outlets, and other online platforms, providing valuable insights into market trends. AI also plays a crucial role in improving security on crypto exchanges.
#2 Global Cryptocurrency Regulations: A Maturing Landscape
Cryptocurrency regulations are evolving rapidly around the world as governments strive to manage risks and protect consumers. The Markets in Crypto-Assets (MiCA) regulation in the EU is a significant milestone, requiring licensing for all crypto firms operating within the bloc and mandating stringent consumer protection measures, including capital requirements for stablecoins.
In the US, efforts like the Financial Innovation and Technology (FIT) for the 21st Century Act and the Blockchain Regulatory Certainty Act are expanding oversight of the industry and clarifying the roles of different regulatory bodies. Similar regulatory movements are underway across Asia. Japan has recognised crypto as legal property, and South Korea passed the Virtual Asset Users Protection Act to increase transparency. However, countries like China and India maintain restrictive approaches, with bans on trading and mining.
Brazil’s 2023 Cryptoassets Act demonstrates the global trend towards more robust regulation, aiming to prevent fraud in the crypto sector.
#3 Mergers and Acquisitions: A Strategic Play in the Crypto Space
As traditional financial institutions race to embrace the digital asset revolution, mergers and acquisitions are becoming a strategic tool to gain a foothold in the cryptocurrency market. By acquiring crypto companies with real-world applications and robust infrastructure, these institutions aim to expand their digital asset capabilities and stay ahead of the curve.
Examples like Ripple’s acquisition of Metaco and Coinbase’s purchase of One River Digital highlight the growing interest in integrating traditional financial services with blockchain technology. These M&A deals not only enhance service offerings but also facilitate entry into new markets and the development of innovative solutions.
Looking ahead, we can expect to see even larger financial institutions playing a more active role in crypto mergers and acquisitions. As the demand for scalable, compliant blockchain solutions continues to grow, strategic partnerships and acquisitions will become increasingly important in paving the way for broader adoption of digital assets.
#4 CBDCs and Stablecoins: A New Era in Digital Finance
Central Bank Digital Currencies (CBDCs) are gaining significant traction, with 86% of central banks actively exploring their potential. Major economies like the UK, EU, and US are in various stages of CBDC research and development, carefully considering privacy concerns, financial stability, and the impact on commercial banks. Smaller nations like the Bahamas, Nigeria, and Jamaica have taken the lead, launching CBDCs to serve as digital alternatives to traditional fiat currencies.
In the private sector, stablecoins have experienced substantial adoption. Major financial institutions and payment providers are integrating stablecoins like USDC and Tether (USDT) into their services, processing billions in daily transaction volume. This growth has prompted regulators worldwide to develop comprehensive frameworks, such as the EU’s MiCA regulation and similar efforts in the UK and US. These regulatory initiatives aim to provide clear guidelines while fostering innovation.
As traditional financial institutions explore stablecoin integration for both retail and wholesale applications, the future of digital finance looks increasingly promising.
#5 The Focus on User Experience and Security
As the crypto landscape continues to evolve, the focus on user experience and security has never been more critical. Cyberattacks are becoming increasingly sophisticated, targeting crypto exchanges and DeFi platforms alike. Historically, the industry has been developer-centric, with little attention paid to creating intuitive platforms for everyday users. However, as more consumers embrace blockchain-based financial services, there is a growing demand for seamless, user-friendly interfaces.
Security is another major concern. High-profile hacks and fraud have tarnished the reputation of the crypto industry, leading to skepticism among users and regulators. DeFi platforms, in particular, have been frequent targets due to vulnerabilities in smart contracts. To foster widespread trust and adoption, the industry must prioritise integrating security features by design, such as blockchain analytics for detecting fraudulent activities and advanced risk management tools.
Emerging technologies like social recovery wallets, which help users regain access to lost funds, and improvements in blockchain scalability and efficiency, will be instrumental in attracting more mainstream users.
Crypto’s Future: A Balancing Act
The future of the crypto industry hinges on its ability to strike a delicate balance between innovation, regulation, and security. As digital assets become more deeply integrated into mainstream finance, we can expect to see a surge in tokenised real-world assets, stablecoins, and central bank digital currencies.
Collaboration between regulators, financial institutions, and tech innovators will be essential in shaping a secure and inclusive ecosystem. Ultimately, the success of crypto will depend on its ability to build trust while delivering the efficiency and transparency that define a rapidly evolving digital economy.
