As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I can confidently say that 2025 promises to be a groundbreaking year for the Web3 industry. Having witnessed the ebb and flow of trends and technological advancements in this space, I am particularly excited about the potential of Real-World Assets (RWAs) tokenization.
With my first investment in Bitcoin back in 2013, I can attest to the resilience and adaptability of the crypto industry, which has proven its ability to overcome significant challenges while driving innovation. The mainstream demand for Bitcoin-regulated financial products and a crypto-friendly White House in 2024 are testaments to this resilience.
The emerging trends of RWAs, onchain biometric verification by AI agents, DePINs (decentralized physical infrastructure networks), and yield generation from Bitcoin are not just buzzwords but tangible opportunities that could revolutionize the way we invest, verify identities, access infrastructure, and earn returns on our digital assets.
I am especially intrigued by the potential of RWAs to double in value next year, as predicted by Sergey Gorbunov, CEO of Interop Labs and co-founder of Axelar Network. This trend could unlock liquidity for traditionally illiquid assets like real estate, making them accessible to a wider pool of investors.
In terms of onchain biometric verification, the fusion of AI and blockchain technology is not only fascinating but also essential in ensuring robust identity verification and authorization frameworks in financial transactions.
DePINs have the potential to democratize community-driven energy services, online storage, and internet connectivity by allowing users to become stakeholders in the networks they rely on, thereby fostering financial inclusion.
Lastly, the possibility of generating annual returns of up to 40% from Bitcoin through the fusion of Bitcoin and decentralized finance is an exciting prospect for both retail and institutional investors alike.
Joking aside, I believe that these trends will not only shape the future of crypto but also have a profound impact on the world as a whole. It’s an exhilarating time to be a crypto investor! And who knows, maybe one day we’ll even see a blockchain-powered solution for ordering pizza at 3 AM – talk about convenience!
2024 is likely to stand out as a pivotal period in the annals of cryptocurrency, marked by escalating interest from mainstream audiences for Bitcoin-governed financial services and a predicted administration at the White House supportive of crypto. The Web3 sector has made substantial progress amidst encountering considerable hurdles throughout its journey.
After long-awaited success from its resilience, the sector is aiming for a prosperous year ahead, with growing optimism about regulatory certainty aligning with decades of advancement and progress.
Keeping a close eye on new developments that could significantly reshape the cryptocurrency world and have broader global impacts, CryptoMoon has prepared an overview of significant crypto trends likely to capture the spotlight in the upcoming months.
RWAs: The use case to watch in 2025
As a long-time investor who has seen both the benefits and drawbacks of traditional asset ownership, I highly recommend exploring tokenization. With my own experience, I can attest to its potential for democratizing access to investments while also enabling fractional ownership. In today’s fast-paced digital world, being able to trade assets in small increments is a game-changer that could open up new opportunities for both novice and seasoned investors alike. I believe tokenization has the power to revolutionize the way we invest and make financial markets more accessible to all.
2024 saw a widespread fascination among developers, investors, and businesses from various sectors with the trend of tokenizing real-world assets (RWAs). This innovation provides liquidity for assets that were previously illiquid, such as property, enabling global investment opportunities that may have been inaccessible to smaller investors.
In 2025, Real-World Assets (RWAs) are expected to be the most significant trend. According to Sergey Gorbunov, CEO of Interop Labs and co-founder of Axelar Network, the value of tokenized assets is projected to more than double within that year.
According to Gorbunov’s perspective, it’s also endorsed by venture capital firm a16z. In their yearly report on trends within the crypto and blockchain sector, they stated that tokenizing non-traditional assets might reshape income production in the digital era.
Based on figures from RWA.xyz, the current market value of tokenized assets is approximately $13.9 billion – a significant increase of 67%, up from $8.3 billion as of January.
Modern financial entities are focusing on establishing safety measures for digitally represented assets (like tokens). Essentially, this means they aim to adhere to all relevant laws, mitigate potential security hazards, and tackle unpredictable market fluctuations. As per Gurbunov’s explanation:
“Multiple major financial institutions will develop the risk frameworks needed to issue RWAs that can move across interconnected, public blockchains.”
ID checks by AI agents
Over the last several years, various methodologies have been developed for verifying identities through blockchain technology.
One significant leap forward in this area is certainly the advent of Zero-Knowledge (ZK) proofs, an innovative technology that enables individuals to verify their identity without disclosing any private data. A handful of startups working on this technology include Worldcoin, ONCHAINID, and RisedID, among others.
As we progress, it’s anticipated that onchain biometric verifications will increasingly rely on artificial intelligence. Essentially, your identity could be automatically verified on the blockchain by an AI system. This might seem like a plot straight out of a science fiction novel, but it’s simply a demonstration of how AI and blockchain technology are merging.
In Chris Hart’s words as Civic CEO, “It’s likely that automated biometrics or government ID verifications will no longer be unusual but rather the standard practice.
“As AI agents increasingly act on behalf of users, robust identity verification and authorization frameworks will be crucial for controlling what these agents can do and for how long — especially in financial transactions.”
DePINs to take off
Through decentralized physical infrastructure networks (DePINS), it’s now feasible for individuals to access community-led energy solutions, digital storage, and internet connections.
DePINs enable users to transform into network shareholders, which means they can acquire a portion of the infrastructure they frequently utilize. This setup generates fresh prospects for economic accessibility.
Borderless Capital, a venture company, is investing significant amounts of money into DePIN technologies, stating that this field presents “an extremely attractive opportunity” within the Web3 landscape.
According to Alvaro Gracia, a partner at Borderless, this is the unique sector in the Web3 space that manages to generate both revenue and essential fundamentals without being linked to the crypto market’s fluctuations. It provides tangible value outside of the traditional cryptocurrency world.
Based on DePIN.Ninja’s compiled statistics, the market value of DePIN’s protocols surpasses $50 billion.
More yields from Bitcoin
To conclude, any conversation about 2025 must include Bitcoin (BTC). Originally viewed with skepticism, Bitcoin has experienced remarkable growth over the last ten years, gaining acceptance from Wall Street and becoming an integral part of our financial world.
As developers grapple with potential improvements for a network that currently hosts an unprecedented number of stakeholders, startups are actively seeking innovative avenues to empower holders with new opportunities for yield generation.
As someone who has been deeply immersed in the world of cryptocurrency for several years now, I can attest to the fact that there is a fundamental requirement for wallet holders across both retail and institutional sectors. This is not just an observation, but a reality borne out of my personal experience and observations within this dynamic industry.
Kevin He, from Bitlayer – a Bitcoin layer-2 protocol backed by asset manager firm Franklin Templeton, has rightly emphasized this point. The need for wallet holders is inherent and native to the functioning of this sector, and it’s crucial that we acknowledge and address it appropriately.
As a researcher examining this fascinating field, I’ve discovered that both individual investors and major Bitcoin holders like MicroStrategy are exploring innovative avenues to boost their income by integrating Bitcoin with Decentralized Finance (DeFi).
According to He, Bitcoiners could soon generate annual returns of up to 40% on their holdings.
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2024-12-31 21:30