Dragonfly partner Haseeb 1/1 posted his views on six key areas of the cryptocurrency market in 2025. Containing predictions and analysis on L1 and L2, token issuance, stablecoins, regulation, AI agents, and the intersection of cryptocurrencies and AI, it may resonate with some and irritate certain "hodlers". Nonetheless, these trends are worth pondering.
Table of Contents
ToggleBlurring of the boundaries between L1 and L2
Users no longer focus on technical details
With technological development, the boundaries between L1 (Layer 1) and L2 (Layer 2) are becoming increasingly blurred. For users, these technical distinctions may never have been the key focus. By 2025, the market will move towards more efficient and specialized integrated solutions.
EVM Advantages to Expand
Although technologies like SVM and Move have shown strong performance, the market share based on the EVM (Ethereum Virtual Machine) is expected to further increase. The driving forces behind this trend include a larger training data set and the prevalence of LLMs (Large Language Models) in code generation.
Low Latency Becomes the New Battlefield
The battle of transaction speed (TPS) will shift towards low latency, especially with the rise of low-latency blockchains like Solana. Infrastructure innovations will drive user expectations for Web2-level response speeds.
The Rise of Specialized Chains
Blockchains focused on specific applications, such as Hyperliquid, have already demonstrated their advantages. In the future, this specialized chain model will be adopted by more projects, and the vision of "one chain to rule them all" may become a thing of the past.
Dual-Track Model for Token Issuance
Transformation of the Airdrop Model
The traditional point-based airdrop is declining, and the future will bifurcate into two paths: for projects with clear metrics (such as exchanges), tokens will serve as user incentive tools; for projects without clear metrics (such as L1 and L2), crowdfunding will become the mainstream.
Decline of Meme Coins and the Rise of AI Coins
The market share of meme coins will gradually be replaced by "AI agent coins," reflecting a shift in market sentiment from "financial nihilism" to "financial over-optimism."
The Comprehensive Rise of Stablecoins
Commercial Applications of Stablecoins
With the increasing demand for instant settlement, small and medium-sized businesses will increasingly adopt on-chain US dollars for business transactions.
Banks Entering the Stablecoin Space
By the end of 2025, banks are expected to start issuing their own stablecoins to prevent being marginalized by the market. Meanwhile, Tether will continue to occupy a leading position with the support of US Commerce Secretary Lutnick.
Institutional Capital Flowing into DeFi
With the decline in US Treasury yields, projects like Ethena Labs will attract more capital, especially as the opportunity cost of capital decreases.
The Dual-Edged Nature of Regulatory Trends
Passage of the Stablecoin Act
The US will pass the Stablecoin Act, which will promote its adoption. However, broader market infrastructure reforms (such as FIT21) will be delayed.
Regulatory Honeymoon for Corporate Expansion
The election of the Trump administration will provide opportunities for large companies to enter the crypto space. Tech companies and startups are expected to take more risks during this period to drive the integration of crypto into Web2 platforms.
The Craziness and Challenges of AI Agents
The Prosperity and Bubble of AI Agents
In 2025, AI agents will become the focus of the market, but this trend may be short-lived. Most of the current agents are "human-controlled" "wizard agents" rather than truly autonomous AI.
The Potential to Replace KOLs
AI agents may be able to replace many key opinion leaders (KOLs), but as the market's novelty wears off, the appeal of these agents may decline significantly, even leading to a "preference for human KOLs."
The Threat of Automated Fraud
In 2025, with the advancement of AI technology, automated fraud bots will proliferate and become a major social problem.
The Potential Revolution of Software Program Agents
The real AI revolution will come from software program agents. The ability of AI to reduce software development costs will lead to an explosive growth of on-chain applications and may bring unprecedented security improvements.
Deep Integration of Cryptocurrencies and AI
Applications of Stablecoin Payments
Autonomous agents will use stablecoins for payments, and this payment method will be more flexible and efficient than traditional bank accounts, especially after the passage of stablecoin regulatory legislation.
Exploration of Decentralized AI Training
More cryptocurrency-based AI training and inference projects will emerge, which may change the current market landscape dominated by centralized companies.
AI-Driven User Experience Revolution
After 2026, AI-driven cryptocurrency wallets will fundamentally change the user experience, from automatic bridging to avoiding scams. AI will simplify all operations, allowing users to no longer need to focus on the blockchain where the application is located.
Risk Warning
Cryptocurrency investment is highly risky, and its price may fluctuate dramatically. You may lose your entire principal. Please carefully evaluate the risks.
