Title: "7 Big Ideas for 2025 (and more trends to watch)"
Author: a16zcrypto
Translator: Ismay, BlockBeats
Summary: This article will explore seven core crypto trends, covering areas such as stablecoins, app stores, and decentralized governance. These trends will not only drive industry development, but also provide new perspectives for future technological innovation and applications.
The following are the original content:
Some Trends We're Watching
Based on observations by its partners in areas like AI, American dynamism, life sciences/health, cryptocurrencies, enterprise software, fintech, gaming, and infrastructure, a16z has published a comprehensive list of "Big Ideas" for the year ahead, aimed at inspiring tech builders.
Here are some important ideas shared by the crypto team members, with more exciting content available in the full article.
For an outlook on policy, regulation, and more for 2025, please refer to this article published in November.
1. Enterprises will increasingly adopt stablecoin payments
Over the past year, stablecoins have found product-market fit - unsurprisingly, as stablecoins are currently the lowest-cost way to send US dollars, enabling fast global payments. Stablecoins also provide a more convenient platform for entrepreneurs to develop new payment products: no middlemen, minimal balance requirements, or proprietary SDKs. But large enterprises have yet to realize the massive cost savings and new revenue opportunities that come with switching to these payment rails.
While we've seen some enterprises express interest in stablecoins (and early use cases in peer-to-peer payments), I expect a bigger wave of experimentation in 2025. Small/medium-sized businesses with strong brand influence, loyal customer bases, and high payment costs (like restaurants, coffee shops, and convenience stores) may be the first to switch from credit cards to stablecoin payments. These businesses don't benefit from credit card fraud protection (especially in face-to-face transactions), and the high transaction fees have a significant impact on their profitability (a 30-cent fee per cup of coffee is a huge profit loss).
We should also expect to see larger enterprises start adopting stablecoins. If stablecoins can accelerate the evolution of banking history, enterprises will try to disintermediate payment processors - directly adding 2% to their bottom line. Enterprises will also start looking for new solutions to problems currently solved by credit card companies, like fraud protection and identity verification.
-- Sam Broner (X handle @sambroner | Farcaster handle @sambroner)
2. Countries exploring on-chain sovereign debt
Putting sovereign debt on-chain would create a government-backed, interest-bearing digital asset, while avoiding the regulatory privacy issues of central bank digital currencies (CBDCs). These products could provide a new source of collateral demand for lending and derivatives protocols in DeFi, adding more stability and credibility to those ecosystems.
As governments supportive of innovation further explore the advantages and efficiencies of public, permissionless, and tamper-proof blockchains this year, some countries may pilot on-chain sovereign debt issuance. For example, the UK has already explored digital securities through its FCA sandbox, and the UK Treasury has expressed interest in issuing digital bonds.
In the US, with the SEC planning to require traditional, cumbersome, and costly infrastructure to clear Treasuries next year, there may be more discussions around how blockchain can improve bond trading transparency, efficiency, and participation.
-- Brian Quintenz (X handle @brianquintenz | Farcaster handle @brianq)
3. "DUNA" will become the new industry standard for US blockchain networks
In 2024, Wyoming passed a new law formally recognizing DAOs (decentralized autonomous organizations) as legal entities. DUNA (the "Decentralized Unincorporated Nonprofit Association") is designed specifically to support the decentralized governance of blockchain networks, and is currently the only viable legal framework for US projects. By incorporating DUNA into the decentralized legal entity structure, crypto projects and other decentralized communities can give their DAOs legal standing - enabling broader economic activity, while protecting token holders from legal liability and properly addressing tax and compliance needs.
DAOs, as communities governing open blockchain networks, are an important tool to ensure networks remain open, fair, and avoid unreasonable value extraction. DUNA can unlock the potential of DAOs, and multiple projects are already pushing for its implementation. As the US further supports and accelerates the development of its crypto ecosystem in 2025, I expect DUNA to become the industry standard for US crypto projects. Other states may also follow suit, adopting similar structures (Wyoming pioneered this trend; they were also the first to adopt the now widely-used LLC) - especially as decentralized applications emerge beyond crypto (like physical infrastructure/energy grids).
-- Miles Jennings (X handle @milesjennings | Farcaster handle @milesjennings)
4. Developers will reuse rather than reinvent infrastructure
Over the past year, teams have been constantly "reinventing the wheel" in the blockchain technology stack - developing yet another custom set of validators, consensus protocol implementations, execution engines, programming languages, and RPC APIs. While these attempts may have slight improvements in certain specific functionalities, they often fall short on broader or more fundamental capabilities. Take the example of a programming language designed specifically for SNARKs: ideally, this language could help top developers build higher-performing SNARKs, but in practice, it may lag behind general-purpose programming languages (at least for now) in compiler optimizations, development tools, online learning resources, and AI programming support - potentially resulting in subpar SNARK performance.
Therefore, I expect to see more teams in 2025 leveraging others' work, reusing existing blockchain infrastructure components - from consensus protocols and existing staked capital, to proof systems. This approach not only saves developers massive amounts of time and effort, but also allows them to focus on building the unique value of their product or service.
The basic infrastructure needed to build consumer-facing Web3 products and services is now largely in place. As in other industries, the teams that will ultimately succeed will be those that can effectively leverage a complex supply chain, not those that scoff at "not invented here" technologies.
-- Joachim Neu (X handle @jneu_net)
5. The crypto industry will see dedicated app stores and content discovery channels
When crypto apps are blocked by centralized platforms like the Apple App Store or Google Play, their top user acquisition channels are limited. However, we're now seeing the emergence of new app stores and marketplaces that provide distribution and content discovery functions without strict review processes. For example, Worldcoin's World App marketplace - which not only stores identity verification information, but also provides "mini-app" access - has brought tens of thousands of users to multiple apps in just a few days. Another example is the zero-fee dApp Store exclusive to Solana phone users. These cases also suggest that not just software, but hardware (like phones or identity verification devices) may become a key advantage for crypto app stores, just as Apple devices once drove the early app ecosystem.
Solana, TRON, and others have also built stores containing thousands of decentralized apps and Web3 development tools. But this is not purely an entertainment-focused ecosystem: migrating an established distribution channel product (like a messaging app) to the chain is not easy (with the exception of Telegram/TON network). The same applies to apps that have significant distribution advantages in the Web2 ecosystem. However, we may see more of these migrations happening by 2025.
-- Maggie Hsu (X handle @meigga | Farcaster handle @maggiehsu)
6. From holders to users: the transformation of crypto users
Over the past year, we've seen the crypto industry shift from a focus on speculation and NFT trading to a greater emphasis on real-world utility and adoption. As DeFi protocols, Crypto.com, Solana, TRON, Worldcoin, Ronin, Ren, and others have made significant progress in building user-friendly products and services, the crypto user base is starting to transform from primarily SOL, HT, AR, ACH, CKB, PLA, RON, ONG, and CHR holders to actual users of these applications.
This shift from speculation to utility is crucial for the long-term sustainability and mainstream adoption of the crypto industry. As more people start using crypto for real-world activities like payments, lending, gaming, and social interactions, the industry will become less dependent on price fluctuations and more focused on delivering valuable products and services. This transition will also help attract a broader user base beyond the current crypto enthusiasts, paving the way for mass adoption.
-- Eddy Lazzarin (X handle @eddylazzarin | Farcaster handle @eddylazzarin)
7. The rise of crypto-native social networks
Over the past year, we've seen the emergence of several crypto-native social networks, such as Farcaster, Lens, and Nostr. These platforms are built on decentralized protocols and aim to provide users with more control, privacy, and ownership over their digital identities and content. Unlike traditional social media, these crypto-native networks are not controlled by a single entity and are designed to be resistant to censorship and content moderation.
As these crypto-native social networks continue to evolve and gain traction, they may start to challenge the dominance of centralized social media platforms. Users who value decentralization, self-sovereignty, and the ability to monetize their content may be drawn to these new crypto-native alternatives. Additionally, the integration of DeFi and other crypto-native features, such as NFT-based profile pictures and social tokens, could further differentiate these platforms and provide new revenue streams for creators and users.
The rise of crypto-native social networks could have significant implications for the broader crypto ecosystem, as they could serve as gateways for onboarding new users and driving mainstream adoption of crypto technologies. These platforms may also become important hubs for decentralized identity, content monetization, and community-driven governance - all of which are crucial for the development of a truly decentralized web.
-- Eddy Lazzarin (X handle @eddylazzarin | Farcaster handle @eddylazzarin)
In 2024, the crypto sector made important progress at the political level, with many key policymakers and politicians expressing positive views on it. At the same time, crypto as a financial movement has continued to develop (for example, Bitcoin and Ethereum ETPs have expanded the participation channels for investors). In 2025, crypto is expected to further develop into a computational technology movement. But where will the next user base come from?
I believe it is time to reactivate those "passive" crypto asset holders and turn them into more active users. Because currently only 5-10% of crypto asset holders are actively using crypto technology. We can bring the 617 million people who already hold crypto assets onto the chain, especially as blockchain infrastructure continues to improve and user transaction fees continue to decline. This means that new applications will gradually emerge for existing and new users. At the same time, some of the early applications we've seen - covering stablecoins, DeFi, Non-Fungible Tokens, games, social, DePIN, DAOs and prediction markets - are also starting to become more mainstream-friendly as the community focuses more on user experience and other optimizations.
——Daren Matsuoka (X Platform @darenmatsuoka | Farcaster Platform)
7. "Hiding Technical Details" Helps Birth Killer Apps for Web3
The technical advantages of the Block industry make it unique, but also to some extent hinder mainstream acceptance. For creators and fans, Block technology has brought new possibilities for connectivity, ownership and monetization... However, industry jargon (such as "Non-Fungible Tokens", "zkRollups", etc.) and complex designs have become a barrier for those who could benefit the most. I have experienced this in countless conversations with executives in the media, music and fashion sectors about Web3.
The mass adoption of many consumer technologies has followed a similar path: technology first, then a iconic company or designer abstracts the complexity, giving rise to breakthrough applications. Reflecting on the development of email - the SMTP protocol is hidden behind the "Send" button; or credit cards, where most users today don't care about the payment rails behind them. Similarly, Spotify's music revolution was not achieved by showcasing file formats, but by delivering playlists directly to users' fingertips. As Nassim Taleb said: "Over-engineering leads to fragility, while simplicity is scalable."
Therefore, I believe our industry will adopt this concept of "hiding technical details" in 2025. The best decentralized applications have already begun to focus on more intuitive interface design, making operations as simple as tapping a screen or swiping a card. In 2025, we will see more companies dedicated to clean design and clear communication; successful products will solve problems without explanation.
——Chris Lyons (X Platform @chrislyons | Farcaster Platform)
6 Key Trends in Decentralized Governance in 2025
2025 will be an exciting year for decentralized governance. Decentralized Autonomous Organizations (DAOs) are continuously breaking new ground, exploring novel models for the collective governance of anonymous token holders. Investment management firms are working to convince clients to participate in online shareholder voting more frequently. Meanwhile, AI companies are also starting to leverage citizen assemblies to set norms for large language models (LLMs). These efforts will catalyze a variety of decentralized governance experiments, including:
- Websites to help voters delegate their votes
- AI-assisted delegation mechanisms
- AI serving as proxies
- Smarter participation incentives
- More efficient public goods funding
- More sortition governance experiments
