Author: Lei, Jinse Finance
2025 is considered an important year for the crypto industry to mature and become more standardized. A series of major events and technological breakthroughs will drive the market into a new stage, while also having a profound impact on the global financial system. The following are eight major crypto industry events worth watching in 2025, along with their background and impact.
I. The New Trump Administration Takes Office: A Turning Point for Crypto Market Regulation
Trump's second term is expected to bring a new direction to U.S. financial regulation, particularly in the policy-making of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The new leadership team may adopt a more open and flexible regulatory approach to drive market development.
Background
1. CFTC's Advancement
More crypto assets classified as commodities: The CFTC may classify more mainstream crypto assets (such as Solana and Polygon) as commodities, clarifying their regulatory framework.
Promoting the expansion of the crypto derivatives market: The CFTC may accelerate the approval of more crypto futures and options trading, providing institutional investors with a wider range of hedging tools.
Global cooperation: By strengthening cooperation with other national regulatory agencies, it will promote the compliance and standardization of cross-border transactions.
2. SEC's Transformation
Expansion of spot ETFs: In addition to Bitcoin and Ethereum spot ETFs, ETFs for more mainstream assets (such as Solana, Hedera) may be approved, further driving capital inflows.
Stablecoin regulatory framework implementation: Stablecoins may be included in the "payment tool" framework, promoting the integration of mainstream payment and settlement systems.
3. Joint Actions of CFTC and SEC
Introduce a unified crypto asset classification standard.
Facilitate smoother institutional capital entry into the crypto market.
Impact
Increased market transparency: A clear regulatory framework will reduce market uncertainty and attract massive institutional capital.
Industry reshuffle: Stricter compliance requirements may eliminate some small and medium-sized projects, leading the market to become more concentrated and mature.
II. Ethereum's Dencun Upgrade and Pectra Technological Innovation
Ethereum will see multiple technical upgrades in 2025, including the full implementation of Danksharding and an upgrade called "Pectra". These technological improvements will significantly enhance Ethereum's scalability and user experience.
Background
Account Abstraction (EIP-7702): Simplifying user operations and supporting complex decentralized applications (DApps).
Zero-knowledge proof support (EIP-2537): Improving privacy and scalability.
Increased validator staking limit (EIP-7251): Improving network efficiency and facilitating institutional staking participation.
Data availability sampling (PeerDAS): Reducing Layer-2 transaction costs and driving ecosystem expansion.
Impact
Attracting more developers and users to the Ethereum ecosystem.
Promoting further development of decentralized finance (DeFi) and the NFT market.
III. Implementation of the Global Stablecoin Regulatory Framework
In 2025, the G20 is expected to complete a unified global regulatory framework for stablecoins, which will have a significant impact on the issuance, reserve requirements, and cross-border payment applications of stablecoins.
Background
Financing dynamics: Stablecoin sector financing reached $1.86 billion in 2024, with Stripe acquiring Bridge Network for $1.1 billion.
Traditional institution involvement: PayPal's PYUSD market cap has exceeded $1 billion, driving the integration of stablecoin payments and traditional payments.
Regional regulations: The EU's MiCA regulation and Hong Kong's stablecoin sandbox program will be fully implemented in 2025.
Impact
Accelerated international payment adoption: Stablecoins will play an important role in high-inflation regions and international trade.
Market size expansion: The stablecoin market cap is expected to exceed $400 billion, becoming the fastest-growing sector in the crypto industry.
IV. Deep Integration of AI and Blockchain
The combination of artificial intelligence (AI) and blockchain is leading to technological innovation, particularly in the areas of AI wallets, decentralized AI agents, and AI training networks. In 2025, this fusion will give rise to multiple new technologies and applications.
Background
1. Decentralized Autonomous Chatbots (DACs): Blockchain-based AI chatbots can autonomously manage assets and complete complex tasks.
2. AI Wallets: AI agents will support autonomous investment and payment functions.
3. Identity Verification and Privacy Protection: The combination of AI technology and blockchain ensures the authenticity and privacy of interactions.
4. AI Agents: Virtual as a new generation of AI and blockchain protocol, through rapid deployment, autonomous intelligent agents, and plug-and-play infrastructure, has driven the application of AI in the metaverse and Web3, attracting widespread community participation and investment support. Eliza, as the world's first chatbot, has laid the theoretical foundation for human-machine interaction, providing important inspiration and historical accumulation for the logic and functions of modern AI agents.
5. Tech giants like Google and Apple launching AI agent products. Decentralized AI networks (such as Fetch.ai) becoming market hotspots.
Impact
The integration of AI and blockchain can help lower the technical threshold of Web3, enhance user privacy and security, and drive the integration of the virtual economy and the real economy. By 2025, it is expected to give rise to more mainstream applications and technological breakthroughs, leading the industry towards maturity.
V. Global Expansion of Bitcoin and Ethereum ETFs
The approval of spot Bitcoin and Ethereum ETFs has brought capital inflows and mainstream recognition to the crypto market. In 2025, more assets may enter the ETF space.
Background
Capital inflows: As of December 2024, the assets under management of Bitcoin ETFs have exceeded $100 billion.
Expansion to other assets: Multiple institutions have submitted Solana ETF applications, including Bitwise, VanEck, 21Shares, and Canary Capital. These applications were mainly submitted in November 2024, and the final approval deadline is expected to be in early August 2025. Meanwhile, institutions like Canary Capital and Bitwise have also filed for spot XRP ETFs with the SEC.
Impact
Accelerated mainstream adoption: The proliferation of ETFs will enhance market liquidity and transparency.
Increased institutional participation: Traditional institutional capital will flow into the market in large scale.
VI. Breakthrough in Real-World Asset (RWA) Tokenization
Real-World Asset (RWA) tokenization made significant progress in 2024, and the market size is expected to further expand in 2025.
Background
2024 total value locked: The RWA market has reached a total value of $60 billion.
Major projects: Ondo Finance, Maple Finance, and Centrifuge have driven asset tokenization.
Stablecoin market cap: As of March 2024, stablecoins, as the largest RWA segment, have a market cap exceeding $150 billion.
Tokenized financial products: Institutions like BlackRock, Franklin Templeton, and Ondo Finance have launched their own tokenized financial products.
Impact
Surpassing market size: The RWA total value locked is expected to exceed $200 billion.
More asset classes: Tokenization of stocks, real estate, and commodities will accelerate.
VII. NFT Renaissance
Non-Fungible Tokens (NFTs) are gradually transforming from their initial use as art collectibles and speculative tools to become more practical on-chain tools. In 2025, as blockchain technology develops and the Web3 ecosystem expands, the potential of NFTs in practical applications will be more widely explored.
Background
Practicality becoming the core driver: NFTs are no longer limited to collectible value, but are gradually being integrated into real-world application scenarios, such as on-chain identity (DID), in-game assets, membership credentials, and consumer rewards.
Emerging Markets and Cross-Industry Collaboration: Projects like Sofamon combine NFTs with the emoji market to develop the economic value of digital identity and on-chain wearable devices.
Technology and Industry Support: NFTs will exhibit higher technical flexibility in 2024 and be used to mark, transfer, and evaluate digital assets and real assets.
Impact
Promoting the Maturity of the Web3 Ecosystem: The practical application of NFTs injects new vitality into the Web3 ecosystem. Through the integration of identity management, membership benefits, and cross-industry innovative applications.
Reshaping Brand and Consumer Relationships: The entry of traditional brands (such as IWC) indicates that NFTs have become an important tool for brands to redefine user experience and brand loyalty.
Promoting the Protection and Monetization of Intellectual Property: Projects like Story Protocol show that NFTs can become an important tool for intellectual property protection, especially in combating counterfeit products and empowering creators.
Accelerating the Integration of On-Chain and Off-Chain Economies: Through the tokenization and valuation capabilities of NFTs, the connection between crypto assets and the real economy will become closer, providing the capital market with higher transparency and liquidity.
Active and Standardized Investment Market: The NFT market in 2025 will be more standardized, and NFTs will no longer be simply speculative tools, but a category of assets with long-term value support.
VIII. DeFi 2.0: Improved Capital Efficiency and Compliance
DeFi protocols will further develop in 2025 by enhancing capital efficiency, introducing on-chain credit, and integrating real-world assets (RWAs).
Background
DeFi protocols significantly improved capital efficiency in 2024 through innovative mechanisms to optimize fund utilization models. Traditional DeFi protocols (such as Aave and Compound) rely on high collateral rate mechanisms, leading to low capital efficiency, while emerging protocols have adopted a Protocol-Owned Liquidity (POL) model, reducing dependence on external capital by holding liquidity pool assets or introducing locking mechanisms, such as Balancer and Curve's "liquidity lock-up rewards" that significantly improved liquidity stability.
The introduction of on-chain credit is an important direction for DeFi development in 2024, using users' on-chain behavior (such as transaction and repayment records) to assess credit, thereby reducing collateral requirements and releasing more liquidity. For example, credit scoring protocols like Arcx and Spectral have begun to be applied to multiple lending platforms, while mainstream protocols like Aave and Maple Finance are testing low-collateral or uncollateralized lending models, bringing new capital release paths to the DeFi field.
The integration of real-world assets (RWAs) is another highlight of DeFi development in 2024, improving capital efficiency by tokenizing traditional assets such as bonds, real estate, and accounts receivable. For example, MakerDAO has added US Treasuries and corporate bonds as collateral, increasing its Dai stablecoin supply by more than 20%. In addition, Ondo Finance focuses on US Treasury tokenization, with its locked-in value exceeding $600 million.
Hyperliquid's innovative token standards HIP-1 and HIP-2 have enhanced the utility and liquidity of tokens. HIP-1 allows users to create fungible tokens directly linked to on-chain spot order books, elevating tokens to specialized financial instruments. Compared to the ERC-20 standard, it ensures immediate tradability and high performance, designed specifically for financial assets.
Impact
Improved Capital Efficiency: POL and dynamic lending rates will attract more funds, driving the total value locked in DeFi to surpass $300 billion by 2025.
On-Chain Credit Reshaping Lending: The widespread adoption of on-chain credit will lower collateral thresholds, promoting a doubling of low-collateral lending volumes and attracting more users and capital to participate.
RWA Tokenization Expanding Asset Classes.
Compliance and Institutional Participation Acceleration: The introduction of compliance frameworks will attract institutional capital, promote the diversified development of DeFi, and strengthen its deep integration with traditional finance.
Summary
2025 will be a year for the crypto industry to move towards maturity and diversification. These major events and trends will collectively drive the normalization, technological innovation, and mainstream adoption of the market, while attracting more traditional institutions and retail users to accelerate the deep integration of the crypto industry with the global financial system.
