**2025: The 'Era of Value Reconstruction' for Virtual Currencies**

—— Breaking through speculative narratives, these three major trends are rewriting the rules

The virtual currency market in 2025 will no longer be dominated by 'bull and bear cycles,' as a value revolution driven by technological iteration, regulatory frameworks, and application scenarios is brewing.

**1. Industrialization of Smart Contracts**

After Ethereum completes its comprehensive upgrade, Layer2 network throughput will exceed 100,000 TPS, and Gas fees will approach zero. Developers will begin to build industrial-grade applications: supply chain finance contracts will automatically match cross-border trade data flows, DeFi protocols will connect to central bank digital currency clearing systems, and DAO organizations will manage over $200 billion in physical assets. Smart contracts will shift from 'code experiments' to the infrastructure layer of the real business world, with compliant asset tokenization giving rise to trillion-dollar new markets.

**2. Globalization of Regulatory 'Sandboxes'**

The Travel Rule regulatory network led by the US and Europe covers 85% of exchanges, but the 'regulatory sandbox special zones' launched by Singapore and the UAE are overturning the rules of the game. Compliant exchanges are obtaining derivatives market-making licenses, and institutional-level RWA (real-world asset) tokenization products are seeing an average daily trading volume exceeding $3 billion. Regulation no longer means suppression; rather, it lays tracks for trillion-dollar traditional capital to enter the market — which may explain why BlackRock's cryptocurrency fund size surpassed $48 billion in Q1 2025.

**3. Revolutionizing User Experience without Sensation**

MPC wallet technology eliminates the mnemonic threshold, and AI agents automatically execute cross-chain exchanges, tax optimization, and risk management. Social platforms' built-in encrypted payment systems have daily active users exceeding 100 million, as young people complete NFT ticket resales using biometrics as easily as sending red envelopes. When the complexity of technology disappears, Web3 will ultimately return to its essence: 2 billion users are not concerned with blockchain, but rather with more efficient ways of value exchange.

**Opportunities and Challenges Coexist**

Mining giants are transforming into AI computing power providers, PoS token staking yields have fallen below 5%, and the process of compliance has reduced the space for 'gray arbitrage' to zero — this transformation is eliminating players from the old era, while also opening new windows for builders who truly create value.