Crypto Outlook 2025 - What Major Investment Institutions Say (Part 1)

Author: OKX Ventures, Bixin Ventures, ABCDE Capital, Foresight Ventures, BTX Capital

Compiled by: Scof, ChainCatcher

Editor’s Note:

At the beginning of the new year, the global investment environment continues to change, and various emerging technologies and market trends continue to emerge. In this context, how investors formulate long-term strategies and how to evaluate and select investment projects have become topics of widespread concern within and outside the Crypto industry.

In this regard, RootData and ChainCatcher jointly hosted this interview, inviting a number of representative investment institutions including OKX Ventures, Bixin Ventures, and ABCDE Capital to conduct in-depth discussions on investment trends and recommendations for 2025.

 What are the investment strategies and promising tracks in 2025? What is the logic behind them?

OKX Ventures :

OKX Ventures will focus on promoting the deep integration of AI, RWA, stablecoins and emerging DeFi in 2025. As blockchain technology matures, policy and regulatory frameworks become clearer, and the global economy accelerates digital transformation, these areas will play a core role in promoting industry innovation and progress.

We will support the dual breakthroughs of Ethereum technology and ecology as our core foundation, while continuing to focus on multi-chain ecology, including Bitcoin, Solana, Sui, and emerging public chains Monad and Berachain, and strive to bring more choices and possibilities to blockchain infrastructure and application scenarios.

Specifically, we believe that:

• The application of AI in blockchain will break through traditional boundaries and become the core driving force for innovation in various industries, especially in the combination of smart contracts, decentralized applications and AI agents.
• RWA will lead the diversification and compliance of blockchain assets, promote the digitization of traditional assets and their circulation in DeFi and other blockchain application scenarios. As the infrastructure of blockchain finance, the decentralization, cross-chain compatibility and compliance of stablecoins will determine the stability and liquidity of future blockchain finance.
• In the DeFi field, we will focus on new liquidity models, modular architectures, and more efficient cross-chain and user experience (UX) solutions to provide better services to global financial users.

For more 2025 industry forecasts and investment strategies, please refer to our published " OKX Ventures Annual Report: 60+ Project Layout and 14 Major Trends Outlook "

AI redefines the structure of the Internet economy

The combination of AI and blockchain is redefining the economic structure of the traditional Internet. The traditional model relies on a few Internet giants to control demand and content creators' income through advertising or other means, but AI breaks this pattern. AI tools are now able to generate and summarize content, and users no longer need to click on links to visit content providers, which weakens the economic model of content creators.

However, AI itself cannot participate in market exchanges independently, and lacks the ability to operate and manage resources independently. Blockchain can provide decentralized transaction and data management mechanisms for AI, especially when building AI Agents, blockchain provides them with self-management infrastructure. For example, AI agents can trade through crypto wallets and become independent market participants, thereby promoting the role of AI in DeFi and other distributed networks. In the future, more than 80% of DeFi transactions may be completed by AI Agents.

The global AI agent market is expected to reach $1.81 trillion by 2030, contributing about $16 trillion to global GDP. The autonomy of AI agents is an important direction of current technological development. Traditional AI exists more as an auxiliary tool, but with the advancement of technology, AI is gradually transforming into an "agent" role, with more autonomous decision-making and action capabilities. For example, decentralized AI chatbots will build their own fan base through decentralized social media, generate revenue, and manage their assets in cryptocurrency. Furthermore, these AI agents can become truly independent business entities, creating unprecedented value.

As the technology matures, AI agents will also be able to better manage infrastructure networks such as DePIN. The technology behind it is the Trusted Execution Environment (TEE), which allows AI to run independently and without human intervention. These agents coordinate through a consensus protocol of decentralized nodes to ensure that their activities and income are transparent and decentralized. The impact of AI technology on software development is also worth paying attention to. As AI agents can efficiently generate code and automate deployment, the cost of software development will drop significantly. This change will accelerate the innovation and popularization of blockchain applications, and more small projects can be started at a lower cost and quickly iterate and optimize.

AI infrastructure and AI frameworks such as multi-agent interactions deserve long-term tracking and attention . As AI agents become more and more independent, how to ensure the compliance and autonomy of their behavior will be a key indicator of their success. The current investment opportunities are mainly reflected in the following aspects:

1. DeFi and AI automation

The current market size of DeFAI is about $1 billion, which has huge room for development compared to DeFi's $150 billion. AI will improve the efficiency of the DeFi market through smart contracts and automated trading strategies. Fields such as automated trading, risk management, and liquidity allocation will become important directions in 2025. AI will enhance the trading algorithms of DeFi platforms and help platforms provide more accurate risk prediction and capital flow management.

AI will provide intelligent decision-making support for trading platforms such as DEX and derivatives by analyzing market dynamics, social media and on-chain data. It will provide traders with an automated decentralized trading assistant by analyzing market sentiment, capital flows, opening interest, trading volume and other data in real time. In addition, AI makes the wallet an intelligent and personalized trading body in addition to an asset storage tool. It can automatically optimize transaction routes, manage cross-chain bridges, reduce handling fees, monitor risks in real time, and prevent users from encountering potential fraud and bad projects. For example:

• Automated trading of smart contracts : AI will analyze data such as funding rates and market fluctuations, adjust trading strategies in real time, and further enhance market liquidity and trading efficiency.
• Risk management system : By automatically managing transaction risks and users' margin levels, we ensure that the DeFi platform remains stable in large-scale transactions and fluctuations. We provide users with pre- and post-transaction data analysis and suggestions to help them make smarter decisions in complex markets and improve their trading skills.
• Agent to Agent Payment: Future AI wallets and decentralized applications will be able to operate across chains. AI can optimize cross-chain transactions, asset management, and risk control, making the payment experience smoother for users and businesses. With the gradual relaxation of stablecoin regulation, AI agent “interoperable payment” will become the norm.

1. Decentralized AI Economy, Coordination, and Governance

As agents gradually find their PMF, multi-agent swarm intelligence and collaboration layers will gain more attention, driving collaboration between more agents and forming an agent-agent economy. As more AI agents enter the decentralized economic system, how to coordinate the interactions between agents and establish an effective market mechanism will be an important focus for future development.

• Decentralized AI governance model : AI will help DAOs to manage proposals and votes more efficiently through real-time data analysis, making decisions more intelligent and taking more variables into account. In the future, AI may become the governance subject of DAOs, provide data-based decisions, gradually replace traditional voting mechanisms, and promote the transformation of DAOs into AI-centered autonomous organizations.
• Training and reasoning experiments : With the advancement of technologies such as model distillation, AI training platforms will achieve data sharing and decentralization of model training and reasoning through blockchain. Through the improvement of coordination and incentive mechanisms, community members can jointly contribute data and computing resources to promote efficient and accessible AI models to run on edge devices and mobile terminals, further improving productivity.

From the user's perspective, as these agents become more autonomous, an agent-led workflow will eventually be formed, which can automatically handle tasks and greatly improve productivity. Agents will begin to use each other's services, and through these services and interactions, they will create the desired results for users, thus solving the problem of fragmentation among AI agents.

1. Reverse challenges and risk management

AI Agents will be active in protocol governance, facing risks such as smart contract vulnerabilities, malicious attacks, technical errors, and the first AI-driven governance attack may occur. Deep fake attacks have increased in the past year and are expected to increase by 50% to 60% in the future. Security AI agents will find PMF, and trusted execution environments (TEEs) will grow or 100 times:

• Smart Contract Security : AI-driven static analysis tools will automatically identify potential vulnerabilities in smart contracts, especially those in code such as Solidity or Rust, improving developers’ repair efficiency.
• Defensive AI : AI can not only detect attacks, but also enhance defense capabilities through real-time red team testing and vulnerability repair, promoting the secure operation of decentralized projects and protocols.
• Smart Authentication/DID: AI provides intelligent identity authentication services by analyzing multi-dimensional user data, ensuring that user privacy is effectively protected in a decentralized environment and solving the "Proof of Personality" (PoH/PoP) problem.
• Privacy computing and data: Unique data sources will become scarce resources, and the data market will grow explosively. AI will improve the efficiency of privacy computing, especially in encryption computing and zero-knowledge proof technology, ensuring data privacy while providing efficient computing and data analysis.

RWA, Stablecoins and New DeFi

By the end of 2024, the total market value of tokenized assets on the chain has exceeded US$14 billion, and Ethereum accounts for nearly 80% of the market share, becoming the core driving force for the development of this field. RWA has accounted for more than 20% of Ethereum assets (mainly high-credit-rated debt instruments such as U.S. Treasury bonds). With the standardization of macroeconomic policies and regulations, more and more traditional financial assets have been transferred to the chain, which not only brings higher returns, but also promotes the further maturity of DeFi.

The on-chaining of RWA is a key strategic direction. Large-scale asset management companies have realized that by putting assets on the chain, they can obtain lower issuance and maintenance costs while increasing the accessibility of assets. As more traditional assets enter the chain, the DeFi protocol is expected to gradually replace the existing financial infrastructure and form a new, decentralized financial system.

The on-chainization of traditional financial assets will generate "capital outflows". For a long time, DeFi has mainly relied on the circulation of endogenous capital, such as on-chain lending or DEX transactions through platforms such as Maker and Aave. However, most of this capital comes from crypto-native assets and is highly reflective (i.e., capital will flow in and out quickly when the market rises or falls).

The annual costs of RWA-related on-chain activities are expected to exceed $100 billion. The addition of RWA has brought external capital from traditional financial markets to DeFi. This capital injection will not only improve the liquidity and stability of DeFi, but also provide support for the diversification of DeFi. Especially in the fields of lending, trading, asset management, etc., the on-chainization of traditional assets can significantly reduce market volatility, improve the predictability and stability of financial products, and thus attract more institutional investors to participate. The tokenized treasury bond market has become a core component of the on-chain DeFi ecosystem, with a locked volume of more than $3 billion, accounting for 21.38% of the total RWA market value. We pay particular attention to the diversified applications of RWA, including stablecoins, in DeFi, and provide stable liquidity and risk management tools for tokenized RWA:

1. The Payment and Settlement Role of Stablecoins

Stablecoins are no longer just value storage tools in the DeFi ecosystem, and their role has gradually expanded to the core level of payment and settlement. As the global financial system transforms to digitalization, traditional financial service providers and payment platforms have begun to actively embrace blockchain technology. As a cross-chain payment tool, stablecoins have become an indispensable part of the global payment system due to their programmability, low transaction costs and high liquidity. OKX Ventures focuses on the following dimensions:

• Network distribution and penetration : The value of stablecoins lies in their wide range of usage scenarios and cross-industry ecological penetration. The participation of merchants and users directly affects the liquidity and market demand of stablecoins. Therefore, we particularly value projects that can achieve large-scale applications and cross-industry cooperation, such as stablecoin solutions that support cross-border payments, supply chain finance and other scenarios. We not only look at industry leaders such as Circle and Tether, but also pay attention to how emerging projects can expand their market share through innovative network distribution mechanisms and accelerate their implementation in emerging markets.
• Compliance and infrastructure construction : As the financial regulatory frameworks of countries around the world gradually improve, compliance has become a key factor in the sustainable growth of stablecoins. We focus on stablecoin projects that can operate under the legal frameworks of multiple countries around the world, and conduct in-depth assessments of their investments in compliance infrastructure. In addition, "stablecoin as a service" platforms with perfect cross-chain payment support and compliance may become a core component of future financial network infrastructure.
• Innovative applications of stablecoins : The application of stablecoins is not limited to the traditional payment field, but also shows great potential in lending, derivatives trading, cross-border remittances, etc. We pay special attention to projects that can bring market changes through innovative applications in market segments, especially in emerging economies and undeveloped markets.

1. RWA and DeFi Platformization

Protocols such as Uniswap and Morpho are gradually developing from single protocol services to platform-based ones, enabling the efficient flow of stablecoins and other assets, further promoting the scale of DeFi. DeFi protocols can provide more flexible liquidity and customized financial products, which not only provides more innovation space for DeFi application developers, but also brings more opportunities for the issuance and application of RWA assets including stablecoins. The following are several key trends and opportunities:

• Cross-chain and asset integration : DeFi protocols that support cross-chain flow and integration of RWA are becoming important players in the market. New protocols use AI technology to achieve more intelligent risk management, including automatic risk assessment, asset repricing, and dynamic adjustment of lending rates, thereby ensuring market liquidity and asset security. At the same time, AI Agent will become the core role of the multi-chain verification network, providing support for the popularization and efficiency improvement of DeFi.
• BTCFi: As Bitcoin hits new highs, institutions and regulators are increasingly interested in it, creating opportunities for new breakthroughs in Bitcoin's DeFi applications. Bitcoin DeFi's penetration rate is only 3% of its total asset value, and it is possible to achieve a hundredfold growth in the future. The market demand for Bitcoin returns is strong, and Bitcoin pledge ETFs may also be favored.
• Platform modularization : DeFi is developing from a single protocol service to a modular platform, similar to the path of traditional SaaS platforms. By breaking down functions into independent, composable modules, DeFi platforms can provide shared liquidity, making capital allocation more efficient; provide developers with flexible customization capabilities, such as creating personalized lending protocols or exchanges; and lower the development threshold through open APIs and tools to attract more participants.

As traditional assets gradually enter the DeFi protocol, especially with the help of stablecoins, the boundary between the traditional financial market and DeFi will gradually blur. DeFi protocols can provide RWA with more efficient financial services such as lending, clearing, and insurance. RWA, with high-rated assets as the core, will become the "engine" of the DeFi market, driving the doubling of market size and liquidity.

Bixin Ventures :

Investment strategy for 2025

Our Bixin Ventures investment strategy in 2025 will focus on the following points:

1. Post-investment empowerment, "working" for the invested projects

Bixin Ventures has invested in more than 100 projects in the past few years. We provide more support to the potential projects, such as white paper consultation and modification, reference of similar projects, track research, competitor research, introduction of media resources, writing of investment research articles, introduction of exchanges and other VC institutions. We not only provide funds, but also "work" for the entrepreneurial team to help the project grow better.

1. Focus on exit and ensure return of invested funds

Last year, the Federal Reserve started a cycle of interest rate cuts, injecting liquidity into global markets. At the same time, with the rise of the Trump team, which supports Crypto, we believe that there will be a series of favorable policies, such as Bitcoin reserves, stablecoin support bills, etc.

All of the above provide good external conditions for the exit of the project. Therefore, we believe that 2025 is a good year for exit. Only when the funds exit smoothly can we help more projects in the future.

1. Pay attention to the secondary market and some potential tracks

In 2025, in terms of investment in the primary market, we will be more cautious and pay attention to some potential tracks, not limited to the Web3 industry, but also artificial intelligence and biomedicine in traditional Web2, in consideration of the exit cycle, rhythm and rotation of different industries, so as to hedge the investment cycle itself by introducing different industries.

At the same time, we will also pay attention to some opportunities in the secondary market, such as AI-related infrastructure and applications, DeFi (including Lending, DEX, Restaking, LST, LRT, etc.), US political-related tokens, etc.

Promising track

1. Artificial Intelligence (Web2)

As algorithms and data gradually mature and reach a singularity of development, we believe that the time is ripe for AI to empower traditional industries. For example, in the fields of intelligent driving, military industry, efficiency software, etc., there are huge investment opportunities.

1. Biopharmaceuticals

The application of AI in the biomedicine field can promote the development of the industry, such as cancer screening, image recognition, new drug research and development, etc. We believe that the support of AI will bring many opportunities.

1. Combining AI and blockchain

The intelligence of AI combined with the asset tokenization and liquidity of blockchain can generate many opportunities. We focus on AI-related infrastructure, such as L1 with AI narrative, AI computing network, data, and related applications, including AI Agent, Agent development framework, AI+DeFi, AI+game, AI+social, etc.

1. Stablecoin-related applications, RWA

With Trump and his team taking office, they will change their previous vague or even anti-Crypto stance and will introduce many policies that are favorable to Crypto. These policies will promote the development of stablecoins, RWA and other tracks.

1. DEX

With the emergence of Hyperliquid, it has gradually been proven that optimizing the underlying public chain and developing decentralized DEX is a viable path. Compared with CEX, which is subject to regulatory laws in various countries/regions, DEX, including Spot and Perp, can naturally reach every corner of the world and has a higher ceiling.

1. game

Although the gaming sector is somewhat neglected at present, it can allow more users to enter the Web3 industry, which in itself can promote Mass Adoption, so it also has potential.

ABCDE Capital , Research Partner, Lao Bai

The logic is simple. AI is the biggest narrative both inside and outside the industry. Although the first wave of AI Framework and Agent are still too simple and the bubble has burst a lot, there are definitely opportunities for the next generation of smarter Agents that act on Defi or other tracks, as well as the infrastructure and applications of various major categories such as collaboration, communication, cross-validation, transactions, and governance between Agents.

ETH recently proposed the concept of Native Rollup, which is very novel and should be helpful for the empowerment and expansion of ETH L1. Solana's Solayer hardware acceleration, Magicblock, Soon and other extended execution layers, FireDancer's new client, etc. are likely to bring some opportunities for infrastructure on Solana.

RWA is due to Trump's coming to power, and the purchase and support of WLFI, AAVE, Link, ENA and other tokens. It is foreseeable that more policy-supported compliant RWA Tokenized assets will be put on the chain in the future.

Co-founder, Foresight Ventures

Our investment strategy has not changed. We are exploring disruptive innovations with long-term value. In terms of subdivision, we hope to find business models that solve large markets and large demands in innovative ways; technological changes that improve production efficiency; and tokenomics that change production relations.

If we talk about the track specifically, I think the infrastructure linking DeFi and TradFi, and innovative products or advantageous channels for crypto payments will be the theme of this year. We will be cautious about crypto AI because it is currently overheated, and we must be wary of following the trend of entrepreneurship.

BTX Capital

In 2025, BTX Capital's investment strategy will focus on three core areas: AI-driven blockchain applications, large-scale implementation of RWA, and breakthroughs in the next-generation blockchain infrastructure.

The logic behind choosing these tracks is that they are at the intersection of the three driving forces of technological maturity, market demand explosion and improvement of regulatory framework, and have both long-term growth potential and short-term feasibility.

(1) Deep integration of AI and blockchain

We believe that the combination of AI and blockchain will release value far beyond that of a single technology. AI can optimize the efficiency and decision-making ability of blockchain. At the same time, blockchain provides data credibility for AI. We will pay special attention to teams that have verified the effect in actual scenarios.

(2) RWA application scale implementation

The core value of RWA lies in combining traditional assets with the transparency and liquidity of blockchain. We are optimistic about two types of opportunities: one is the on-chain mapping of standardized assets, which have high liquidity and clear compliance paths; the other is the securitization innovation of non-standard assets. In general, we focus on innovative solutions that can break through compliance and market access barriers. A successful RWA project must have the ability to prove its compliance.

(3) Upgrading and popularization of blockchain infrastructure

As the user scale expands, the availability of infrastructure will become a competitive focus. We focus on three directions: first, modular architecture, achieving high performance and low cost through layered design; second, user experience innovation; third, cross-chain interoperability, ensuring that assets and data can flow seamlessly in a multi-chain ecosystem.

What suggestions can you share for projects planned for financing in 2025?

OKX Ventures :

In 2025, financial instruments and new structures for crypto financing continue to emerge, and community-driven ICO platforms like Echo also bring more opportunities for founders to innovate. The first suggestion: use AI, become a tacit partner with AI as early as possible, and make full use of the potential of AI to accelerate decision-making and iteration. Others:

1. Focus on solving specific problems and quickly launch MVP
   Don't aim for a huge market from the beginning. In the early stages, the most important thing is to focus on solving a small and specific problem. You can use the product yourself and get in touch with real users, focus on a small group of core users, and deeply understand their needs and find their pain points. This will enable you to iterate your product more efficiently and avoid interference from market complexity. Launch your product early, collect user feedback and verify core assumptions, and avoid wasting time on over-planning and over-building.
2. Start with products and users, avoid over-reliance on financing <br>If you are a founder entering the crypto space for the first time, don't be too obsessed with the speed of financing. What really matters is the product and user experience. In many cases, the core competitiveness of a product comes from user feedback and word of mouth, especially high-quality users are the best marketing channel. So don't over-expand the product's functions or the size of the community in pursuit of financing. Keep the product simple and focused, and continue to iterate and optimize to truly win the market.
3. Token design should be pragmatic, and don’t over-hype from the beginning <br>Many teams pay too much attention to maximizing liquidity and short-term prices when issuing tokens, and often ignore long-term community building. Start with a reasonable market value and provide practical incentives for coin holders. The value of the token should be supported by actual usage scenarios and good product experience.
4. Focus on developer ecology and community building <br>Focus on the construction of a healthy developer ecology and community, rather than maintaining face on social media through "fake activity". It is more important to choose a stable and sustainable ecology to build than simply pursue short-term market popularity. The long-term construction capabilities of the team and community, whether there is good developer support, and whether there is systematic technology and capital investment to promote the growth of the project. Truly supporting the developer community can help the project improve its value and trust.
5. Focus on the business model <br>The clarity of the business model is important for attracting investment. Once the product has a stable user base, it should start to develop a commercialization path to ensure a continuous source of income. Whether it is through transaction fees, value-added functions, or token sales, find a business model that can cope with market fluctuations and economic cycles. And continuously optimize marketing strategies, product functions and resource allocation based on growth data to ensure that the business model can operate stably in different market environments.

Bixin Ventures :

1. Identify potential tracks

Big fish grow in big rivers, so it is crucial to choose a track with high potential, which will attract a large number of entrepreneurs and funds, forming potential energy and bringing more opportunities. It is difficult for a small track to produce a big project.

1. Benchmarking and leveraging

Find the best project in this field, do more research and analysis, find out its highlights and shortcomings, and then use your creativity to improve its shortcomings while inheriting its advantages, and then vigorously promote the improved points.

1. Spend more time finding the “right” person

Based on the core capabilities required for the project, compare them with the capabilities of the existing team, find the missing capabilities, and then find the corresponding people. In the process, we should not only pay attention to their own professional capabilities, but also pay attention to their soft dimensions such as creativity, sense of mission, passion, and concentration.

ABCDE Capital , Research Partner, Lao Bai

Control the financing amount and Burnrate. The market is no longer willing to pay for the high financing and high FDV. You need to raise money and survive under the premise of relatively low FDV.

Focus on the core or periphery of the main track and narrative, and strive to create projects with real users and real revenue. Last year, HyperLiquiquit, PumpFun, Kaito, and GMGN were all good examples to learn from.

If the track is very competitive, you might as well jump out of the current track and think from a different perspective. For example, when everyone is competing for Ai Agent or Framework, you can try to jump out and see what "water-selling business" will be available to Agents when there are tens of thousands of Agents on the chain in the next year, such as the shared memory layer, communication layer, and collaboration layer between Agents.

Co-founder, Foresight Ventures

I think the community is becoming more and more important. The financing structure needs to be innovative, and changes should be made in the allocation between institutions, KOLs, and communities, such as giving more quotas to KOLs and communities. But it should be noted that no matter who it is, if he is unwilling to lock up his position, he is definitely not your believer. Entrepreneurs also need to do enough work to make the community believe in your long-term value. It is not difficult to form an effective community just by discounting or giving away tokens.

BTX Capital

For projects planning to raise funds in 2025, BTX Capital recommends building competitiveness from the following four aspects:

(1) Clarify the value proposition: Ensure that the core innovation of the project matches market demand and can clearly communicate the value proposition. At the same time, avoid empty "disruptive narratives" and focus on quantifiable improvements.

(2) Design a phased milestone system

Break down the long-term vision into executable short-term goals. Prepare comprehensive materials: including financial models, market analysis and technical roadmaps to demonstrate the project's execution capabilities and prospects; at the same time, set up risk buffer mechanisms, such as reserving 20% of funds to cope with extreme market fluctuations.

(3) Focus on long-term potential. Find a differentiated niche

Investors focus on sustainable growth models, so projects need to demonstrate long-term competitiveness and differentiated advantages. In addition, they need to demonstrate synergies with strategic partners, such as technical integration plans between infrastructure projects and mainstream public chains.

(4) Establish strong industry connections and transparent project operations

Actively participate in industry events to build trust and awareness with potential investors and partners. At the same time, enhance trust by regularly disclosing verifiable data on the chain (such as TVL, user growth curve, and protocol revenue).

Success in 2025 will belong to projects that balance technical depth, compliance capabilities and user value. Regardless of the track, the core is to solve real pain points and continuously verify feasibility through phased results.