The last few years in crypto was brutal to say the least. After the FTX debacle in November 2022, many folks lost faith and left, calling web3 a Ponzi scheme and a scam. After ~800 billion dollars wiped out from the space, those that remained kept their heads down and worked on:

• Infrastructure Improvements

• Consumer Applications

• DeFi protocols

As we enter 2025, things have changed. Bitcoin has hit all time highs, entrepreneurs are hopeful that US can be a place where web3 innovation flourishes (again), and, most importantly, consumers are returning to the space. The upcoming year(s) are instrumental to the success of the industry long-term, both in terms of enterprise and consumer adoption.

Without further ado, here are my web3 predictions for 2025

Token launches will be abundant

Regulatory sentiment to tokens have shifted in the United States with the announcement of Paul Atkins as the next SEC Chair and David Sacks as the Crypto (and AI) Czar, the industry is expecting clarity in web3 regulation. This change will lead to communities, companies, and individuals to confidently launch tokens. Tokens will serve primarily as liquidity grab at first, but will quickly evolve to token utility and benefits. Expect mass proliferation of different token types to emerge(network tokens, governance tokens, “meme” tokens, utility tokens).

There will be legal innovations in token structures

Companies and teams that want to launch tokens have refined the process over the past few years using the Labs + Foundation model. @wassielawyer on X has a fantastic thread explaining the nuances and functions for each. In a sentence, foundation’s purpose is to facilitate offshore token issuance and governance structure while lab’s purpose is to incorporate and build products. In parallel, we will see the rise of DUNA corporations - a new legal way to incorporate DAOs and decentralized projects in the US.

Decentralized Physical Infrastructure Networks (DePIN) will have its spotlight

Today, we leverage centralized entities for physical services ranging from cellular connectivity to GPU usage. Centralized entities pose a risk in someways in that they can (a) control the pricing (b) limit availability of the service (c) provide little to no insight for stakeholders. DePIN helps tackle these problems by creating two parties facilitating services: the node providers and the consumers. Companies like Helium (mobile), ICP (internet) and Render (GPU). As node providers increase and consumers start to explore the decentralized world of crypto, we will see increased usage of these services.

Communities will launch their own networks - 1-step closer to the Network State

Balaji Srinivasan talked about the Network State being an inevitable future. Balaji defines it as:

A network state is a highly aligned online community with a capacity for collective action that crowdfunds territory around the world and eventually gains diplomatic recognition from pre-existing states.

With the infrastructure to easily create networks (or rollups) available for developers (Arbitrum Orbit, OP Stack, etc.), it is easier than ever to launch networks. The infrastructure improvement along with the legal unlock, communities will be eager to access liquidity and accomplish specialized goals that aligns with the communities.

NFTs will be the credential badges to existing and emerging communities

The NFT bull run took over the internet in 2021-2022 where users got together, first, for the community, art, and prestige. This quickly evolved into everything else in crypto at the time - speculation play to make a quick buck. NFTs became synonymous with scams and activity died down. With the resurgence of web3 and tokens, the NFT projects that survived such as Pudgy Penguins, Azuki, and Doodles have been active in providing value ranging from collectibles at Walmart to TV shows. Now, those who hold the NFTs get more perks such as token airdrops, access to services/products before others, and more. These leaders will be the example for other NFT communities that are looking to leverage NFTs as both a badge and viral marketing material into their ecosystem.

UX will still be a key blocker in widespread consumer adoption

The first step for many consumers to enter the web3 space is via Wallets. The biggest friction point for users was that it was complicated to manage - users had to manage 12-24 words which acts as a password to hold their tokens. (I still struggle to remember my own passwords). Today, users can easily login via passkeys (finger print, face ID) or social login (Google, X, Apple, etc). While this drastically improves wallet onboarding for millions (billions?), wallet providers will have to solve for the next big friction point - getting tokens. Below represents oversimplified flow of a user using an L2 token:

Get a wallet → Buy tokens → transfer tokens → bridge tokens → use tokens

Buying tokens require complicated KYC processes, transferring tokens require users to send tokens to complicated addresses (some of which may be malicious), bridge tokens (how can we expect new users understand this concept with ease?), and finally, use the token. Wallet providers (or web3 service providers) that simplify this process will be big winners of 2025 and beyond.

Wallets will emerge as competitors to exchanges

As mentioned above, one of the key frictions for users will be to purchase crypto to use web3 services. With the emergence of many token providers such as Stripe, Transak, and Paypal, we will see wallet providers to take a piece of the entry point from large exchanges such as Coinbase and Binance. Wallet providers also provide decentralized services to swap and interact with other dapps, further separating the users that are buying/holding and swapping/using the tokens.

Stablecoins will dominate enterprise use cases

Transferring fiat from one bank to another is time-consuming, incurs fees, and involves multiple steps. Stablecoins reduce this friction by letting companies instantly send USD-pegged tokens from one address to another. With these advantages in speed and cost, we’ll see (1) the rise of other fiat-pegged stablecoins (e.g., EUR, GBP) and (2) enterprises adopting stablecoins for large-scale transactions.

Memecoins are dead. Long live memecoins

Memecoins are often overlooked, partially due to the word meme in the name. “Memecoins” simply represent abstract ideas and movements (literal popular memes, trends, art) and empowers with a pocket for liquidity. In layman terms, memecoins are abstract ideas with financial value. In 2024, we saw all types of memecoins such as: AI Agent coins, political coins, Tik-tok trending coins, and more. The common pattern seemed to be tokens that all tokens that don’t have a product behind it are “memecoins”. In 2025, we will see an explosion of categories and types of coins which will then be recategorized from “memecoins” to a more legitimized term.

Web3 synergies with AI will be abundant

I define AI as centralized systems that consume the internet and output value as desired by the user. A natural counter balance to the centralized system is to pair with decentralized infrastructure to help democratize the usage and components of AI services. AI <> Web3 services can currently bucketed to:

1. AI Powered Analytics - leveraging AI service itself to better understand activity and trends on blockchains (The Graph Protocol)

2. Crypto Incentives for AI Training - using tokens to incentivize sharing of data and compute resources for AI model training (Sahara AI)

3. AI Governance - Using AI to manage and optimize DAOs, communities, and protocols (Bankless article on “AI-drive DAOs”)

4. AI for Data Provenance - tracking the origin, movement, and usage of the data used for AI Models to ensure authenticity and integrity.

The content provided in this article, titled “Web3 Predictions,” is intended for informational and educational purposes only. The views and opinions expressed herein are solely those of the author and do not constitute financial advice, recommendations, or endorsements. Nothing in this article should be construed as professional financial guidance.

Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment or financial decisions related to Web3 technologies or any other financial instruments. The author and publisher disclaim any liability for actions taken based on the information presented in this article.

By accessing and reading this article, you acknowledge and agree that the author and publisher are not responsible for any financial losses or other consequences that may arise from your reliance on the information provided.

The last few years in crypto was brutal to say the least. After the FTX debacle in November 2022, many folks lost faith and left, calling web3 a Ponzi scheme and a scam. After ~800 billion dollars wiped out from the space, those that remained kept their heads down and worked on:

• Infrastructure Improvements

• Consumer Applications

• DeFi protocols

As we enter 2025, things have changed. Bitcoin has hit all time highs, entrepreneurs are hopeful that US can be a place where web3 innovation flourishes (again), and, most importantly, consumers are returning to the space. The upcoming year(s) are instrumental to the success of the industry long-term, both in terms of enterprise and consumer adoption.

Without further ado, here are my web3 predictions for 2025

Token launches will be abundant

Regulatory sentiment to tokens have shifted in the United States with the announcement of Paul Atkins as the next SEC Chair and David Sacks as the Crypto (and AI) Czar, the industry is expecting clarity in web3 regulation. This change will lead to communities, companies, and individuals to confidently launch tokens. Tokens will serve primarily as liquidity grab at first, but will quickly evolve to token utility and benefits. Expect mass proliferation of different token types to emerge(network tokens, governance tokens, “meme” tokens, utility tokens).

There will be legal innovations in token structures

Companies and teams that want to launch tokens have refined the process over the past few years using the Labs + Foundation model. @wassielawyer on X has a fantastic thread explaining the nuances and functions for each. In a sentence, foundation’s purpose is to facilitate offshore token issuance and governance structure while lab’s purpose is to incorporate and build products. In parallel, we will see the rise of DUNA corporations - a new legal way to incorporate DAOs and decentralized projects in the US.

Decentralized Physical Infrastructure Networks (DePIN) will have its spotlight

Today, we leverage centralized entities for physical services ranging from cellular connectivity to GPU usage. Centralized entities pose a risk in someways in that they can (a) control the pricing (b) limit availability of the service (c) provide little to no insight for stakeholders. DePIN helps tackle these problems by creating two parties facilitating services: the node providers and the consumers. Companies like Helium (mobile), ICP (internet) and Render (GPU). As node providers increase and consumers start to explore the decentralized world of crypto, we will see increased usage of these services.

Communities will launch their own networks - 1-step closer to the Network State

Balaji Srinivasan talked about the Network State being an inevitable future. Balaji defines it as:

A network state is a highly aligned online community with a capacity for collective action that crowdfunds territory around the world and eventually gains diplomatic recognition from pre-existing states.

With the infrastructure to easily create networks (or rollups) available for developers (Arbitrum Orbit, OP Stack, etc.), it is easier than ever to launch networks. The infrastructure improvement along with the legal unlock, communities will be eager to access liquidity and accomplish specialized goals that aligns with the communities.

NFTs will be the credential badges to existing and emerging communities

The NFT bull run took over the internet in 2021-2022 where users got together, first, for the community, art, and prestige. This quickly evolved into everything else in crypto at the time - speculation play to make a quick buck. NFTs became synonymous with scams and activity died down. With the resurgence of web3 and tokens, the NFT projects that survived such as Pudgy Penguins, Azuki, and Doodles have been active in providing value ranging from collectibles at Walmart to TV shows. Now, those who hold the NFTs get more perks such as token airdrops, access to services/products before others, and more. These leaders will be the example for other NFT communities that are looking to leverage NFTs as both a badge and viral marketing material into their ecosystem.

UX will still be a key blocker in widespread consumer adoption

The first step for many consumers to enter the web3 space is via Wallets. The biggest friction point for users was that it was complicated to manage - users had to manage 12-24 words which acts as a password to hold their tokens. (I still struggle to remember my own passwords). Today, users can easily login via passkeys (finger print, face ID) or social login (Google, X, Apple, etc). While this drastically improves wallet onboarding for millions (billions?), wallet providers will have to solve for the next big friction point - getting tokens. Below represents oversimplified flow of a user using an L2 token:

Get a wallet → Buy tokens → transfer tokens → bridge tokens → use tokens

Buying tokens require complicated KYC processes, transferring tokens require users to send tokens to complicated addresses (some of which may be malicious), bridge tokens (how can we expect new users understand this concept with ease?), and finally, use the token. Wallet providers (or web3 service providers) that simplify this process will be big winners of 2025 and beyond.

Wallets will emerge as competitors to exchanges

As mentioned above, one of the key frictions for users will be to purchase crypto to use web3 services. With the emergence of many token providers such as Stripe, Transak, and Paypal, we will see wallet providers to take a piece of the entry point from large exchanges such as Coinbase and Binance. Wallet providers also provide decentralized services to swap and interact with other dapps, further separating the users that are buying/holding and swapping/using the tokens.

Stablecoins will dominate enterprise use cases

Transferring fiat from one bank to another is time-consuming, incurs fees, and involves multiple steps. Stablecoins reduce this friction by letting companies instantly send USD-pegged tokens from one address to another. With these advantages in speed and cost, we’ll see (1) the rise of other fiat-pegged stablecoins (e.g., EUR, GBP) and (2) enterprises adopting stablecoins for large-scale transactions.

Memecoins are dead. Long live memecoins

Memecoins are often overlooked, partially due to the word meme in the name. “Memecoins” simply represent abstract ideas and movements (literal popular memes, trends, art) and empowers with a pocket for liquidity. In layman terms, memecoins are abstract ideas with financial value. In 2024, we saw all types of memecoins such as: AI Agent coins, political coins, Tik-tok trending coins, and more. The common pattern seemed to be tokens that all tokens that don’t have a product behind it are “memecoins”. In 2025, we will see an explosion of categories and types of coins which will then be recategorized from “memecoins” to a more legitimized term.

Web3 synergies with AI will be abundant

I define AI as centralized systems that consume the internet and output value as desired by the user. A natural counter balance to the centralized system is to pair with decentralized infrastructure to help democratize the usage and components of AI services. AI <> Web3 services can currently bucketed to:

1. AI Powered Analytics - leveraging AI service itself to better understand activity and trends on blockchains (The Graph Protocol)

2. Crypto Incentives for AI Training - using tokens to incentivize sharing of data and compute resources for AI model training (Sahara AI)

3. AI Governance - Using AI to manage and optimize DAOs, communities, and protocols (Bankless article on “AI-drive DAOs”)

4. AI for Data Provenance - tracking the origin, movement, and usage of the data used for AI Models to ensure authenticity and integrity.

The content provided in this article, titled “Web3 Predictions,” is intended for informational and educational purposes only. The views and opinions expressed herein are solely those of the author and do not constitute financial advice, recommendations, or endorsements. Nothing in this article should be construed as professional financial guidance.

Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment or financial decisions related to Web3 technologies or any other financial instruments. The author and publisher disclaim any liability for actions taken based on the information presented in this article.

By accessing and reading this article, you acknowledge and agree that the author and publisher are not responsible for any financial losses or other consequences that may arise from your reliance on the information provided.