Stablecoin daily settlement volumes reach $300 billion.๐ฅ
๐๐ฅStablecoins will evolve from a niche role in cryptocurrency trading to become a central part of global commerce. ๐ฅBy the end of 2025, we project that stablecoins will settle daily transfers of $300 billion, equivalent to 5% of current DTCC volumes, up from $100 billion daily in November 2024. ๐ฅAdoption by major tech companies (like Apple and Google) and payment networks (Visa, Mastercard) will redefine the payments economy.โ๏ธ
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๐ฅ๐Beyond trading, the remittance market will explode. For example, stablecoin transfers between the U.S. and Mexico could grow 5x, from $80 million to $400 million monthly, driven by speed, cost savings, and growing trust. Stablecoins will serve as a Trojan horse for blockchain adoption.๐๐ต
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๐๐ฅOn-chain AI agent activity surpasses 1 million agents.
๐๐ฅWe believe one of the most compelling narratives that will gain massive traction in 2025 is AI agents. These specialized bots help users achieve outcomes like โmaximize returnsโ or โboost engagement on X/Twitter.โ๐ฅ๐
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๐ฅ๐AI agents optimize results by autonomously adapting their strategies. Protocols like Virtuals already provide tools for anyone to create AI agents for on-chain tasks. Virtuals allows non-experts to access decentralized AI contributors, like tuners, dataset providers, and model developers, enabling anyone to create their own AI agents. This will result in a massive proliferation of agents, which creators can rent out to generate income.๐๐ฅ
๐๐ฅBitcoin Layer 2s (L2s) reach 100,000 BTC in Total Value Locked (TVL).๐ค
๐๐ฅWe are closely monitoring the emergence of Bitcoin Layer 2 (L2) blockchains, which hold immense potential to transform the Bitcoin ecosystem. These solutions enhance Bitcoinโs scalability by enabling lower latency and higher transaction throughput. Additionally, Bitcoin L2s introduce smart contract functionality, paving the way for a robust DeFi ecosystem built around Bitcoin.๐๐ฅ
๐๐ฅDeFi reaches all-time highs with $4 trillion in DEX volumes and $200 billion in TVL.
๐๐ฅโ๏ธDespite record volumes in decentralized exchanges (DEXs), DeFiโs total value locked (TVL) remains 24% below its peak. We anticipate DEX trading volumes will exceed $4 trillion in 2025, ๐ฅโ๏ธcapturing 20% of centralized exchange (CEX) spot trading volumes, fueled by the proliferation of AI-related tokens and new consumer-oriented decentralized apps.โ๏ธ๐ฅ๐
๐๐ฅTokenized securities and high-value assets will catalyze DeFiโs growth, adding new liquidity and utility. As a result, we project DeFiโs TVL will exceed $200 billion by year-end, reflecting the growing demand for decentralized financial infrastructure in a digital economy.๐๐ฅ
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๐๐ฅThe NFT market recovers with trading volumes reaching $30 billion.๐
๐๐ฅThe 2022-2023 bear market hit the NFT sector hard, with trading volumes plunging 39% from 2023 and a staggering 84% from 2022. While fungible token prices began recovering in 2024, most NFTs lagged until a turning point in November.โ๏ธ๐
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๐Notable projects like Pudgy Penguins transitioned into consumer brands through collectible toys, while Miladys gained cultural prominence within internet subcultures. Similarly,๐ the Bored Ape Yacht Club (BAYC) evolved as a cultural force, attracting widespread attention from brands, celebrities, and mainstream media.๐ต
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๐กโญAs cryptocurrency wealth rebounds, we expect affluent new users to diversify into NFTs, viewing them not only as speculative investments but as assets with lasting cultural and historical significance.โญ๐โญ
๐ฅโญ๐ฅDApp tokens narrow the performance gap with L1 tokens.
๐ฅ๐A constant theme of the 2024 bull market was the significantly better performance of Layer 1 (L1) blockchain tokens compared to decentralized application (dApp) tokens. For example, the MVSCLE Index, tracking smart contract platforms, gained 80% year-to-date, while the MVIALE Index of application tokens lagged with a 35% gain.๐ฅ๐
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๐ฅ๐We expect this dynamic to shift later in 2024 as a wave of innovative dApps launches, offering new, valuable products that enhance their respective tokens. Key trends include AI-driven applications and decentralized physical infrastructure networks (DePIN), which hold immense potential to capture investor and user interest.๐๐ฅ
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๐ฅ๐This shift highlights the growing importance of utility and product-market fit in determining the success of dApp tokens in the evolving cryptocurrency landscape.