Seven executives from cryptocurrency firms shared their expectations for 2025 with DLNews. Among their forecasts are the revival of DeFi, a tokenization boom, and even a “serious crash.”
DeFi Revival to Continue
Since its emergence in the summer of 2020, decentralized finance has proven to be a truly revolutionary technology. However, in the past two years, the sector has been “somewhat undervalued,” stated Michael Harvey, Head of Franchise Trading at Galaxy Digital.
He believes the ongoing trend of revitalization in the DeFi sector will continue.
In the Ethereum ecosystem, established protocols like Uniswap, Aave, and Compound are steadily developing, along with improvements in second-layer networks such as Arbitrum, Optimism, and Base.
Meanwhile, a new generation of DeFi projects like Spark, Ethena, and various DEX aggregators have “significantly improved the trading process.”
The Solana blockchain has proven its success in the segment, with trading volumes on the network’s decentralized platforms regularly surpassing those of the Ethereum ecosystem.
“Bitcoin should not be excluded from the DeFi narrative. Efforts are underway to enhance the programmability of the first cryptocurrency, using its unparalleled security to support Ordinals, the BRC-20 protocol, and the expanding BTCFi ecosystem,” concluded Harvey.
Balance co-founder Norris Wang also anticipates a revival of “decentralized finance innovations.” The drivers will be growing confidence among developers and investors, deeper integration with fintech platforms, and the return of the US to a leading role in the segment.
A Tokenization Boom Awaits
One of the key areas for blockchain technology adoption will be the tokenization of asset baskets, particularly those backed by government bonds, according to Copper CEO Amar Kuchinad.
Examples include existing products from BlackRock and Franklin Templeton.
“We are likely to witness a wave of flexible traditional financial market infrastructure providers implementing blockchain-based solutions,” suggested the executive.
According to him, the technology’s advantages will aid its adoption:
- fast settlements;
- risk reduction;
- more efficient capital management;
- lower operational costs.
Ava Labs Business Development Director Morgan Krupetsky believes tokenization will “significantly expand” into various sectors and asset classes.
Beyond stablecoins and money market funds, the trend will encompass stocks, fixed-income securities, and other traditional financial instruments.
Companies using Web2 technology, already possessing client networks and distribution channels, will increasingly adopt blockchain. According to Krupetsky, this will reflect the demand for more efficient and transparent ways to offer products.
“It will likely include the integration of tokenized assets on their platforms for everything from payments to supply chain management. Besides faster and more efficient transactions, the adoption could ultimately lead to increased money circulation speed,” she noted.
Fasset co-founder and CEO Mohammad Raafi believes tokenization facilitates cryptocurrency adoption in fast-growing markets like Indonesia and Pakistan.
As an example, he cited real estate investment solutions that remove barriers. Users from developing countries can own a share of property in London or New York by investing less than $100, the entrepreneur emphasized.
He also pointed out that in 2024, over 60% of crypto wallets were created in third-world countries. This highlights the demand for DeFi solutions in regions with limited banking access. This trend will intensify in 2025, Raafi suggested.
Strategic Bitcoin Reserves, AI, Meme Coins, “Dinosaur Altcoins,” and Other Trends
Plume CEO Chris Yin is also confident that tokenized real assets will be at the forefront of the dynamic cryptocurrency landscape in 2025. Among other trends, he mentioned AI, meme tokens, “dinosaurs” like Ethereum, Litecoin, or Monero, and increased community activity.
“However, real innovation will be in real assets. The growth of stablecoins as the fastest-growing class of digital assets in 2024 was evidence of the practical utility of RWA, especially for institutional users,” the expert emphasized.
VALR Marketing Director Ben Caselin believes that in the coming year, three themes should be closely monitored.
Firstly, the initiative by US President-elect Donald Trump to create a strategic bitcoin reserve will prompt other countries to take steps in this direction. However, the manager does not expect smooth developments — resistance will be significant.
Secondly, although changes in fiscal policy will favor the market overall, a “serious crash” is approaching, Caselin believes.
“The constant issuance of new speculative tokens is no better than reckless money printing by central banks and could prove detrimental in the long term,” he explained.
Thirdly, Caselin anticipates regional consolidation of exchanges. Licensed national platforms will come to the forefront amid a relative decline in unregulated global venues. This trend will particularly affect developing countries, he noted.
“Otherwise, bitcoin is in an exceptionally good position and is likely to demonstrate further growth and increased volatility,” concluded the expert.
As reported in Forbes, predictions were presented not only for the crypto industry but also for the AI segment.