From Bitcoin-Fi to restaking: Pantera Capital outlines what’s next for crypto in 2025

In simpler terms, by 2025, it’s predicted that the financial sector built around Bitcoin and Non-Fungible Tokens (NFTs) will foster new inventions. This is due to an expansion of real-world assets and financial technology platforms becoming more welcoming towards cryptocurrencies.

As President-elect Trump hints towards pro-cryptocurrency policies, the industry is preparing for a groundbreaking year full of innovative concepts. Paul Veradittakit, partner at Pantera Capital, has expressed his views on the future of cryptocurrencies in 2025 through an email newsletter that was distributed to crypto.news readers.

Highlighting insights gleaned from the Pantera team, he’s emphasized eight significant trends – with some currently picking up momentum and others just beginning to surface. Below is a straightforward peek at potential trends that could become popular this year.

Table of Contents

Real-world assets surge on-chain

In simple terms, types of financial assets such as private credit, government bonds, and commodities are becoming increasingly popular, and their combined worth surpassed $13.7 billion in 2024 after growing by over 60%. Veradittakit anticipates that these assets, known as Real-World Assets (RWAs), will account for approximately 30% of the total value locked on blockchain platforms in 2025, marking a significant increase from their current 15% share.

Specialized businesses handle digital wallets, coin production, detecting Sybil attacks, crypto banks of the new generation, among other tasks. This could potentially open the door for the introduction of traditional financial products like stocks, ETFs, bonds, and more intricate ones, directly onto the blockchain.
Paul Veradittakit

In simpler terms, private credit is taking the forefront, with companies such as Figure adding around $4 billion in assets during the previous year. Treasury bills are becoming increasingly appealing due to their returns. Furthermore, it’s possible that sophisticated financial instruments like equities and bonds could also make their way into blockchain technology, according to Veradittakit’s predictions.

Bitcoin-Fi finds momentum

Bitcoin (BTC) has traditionally maintained its position as a foundational network, distinct from competitors such as Ethereum that have opted for layer-2 solutions to tackle scalability challenges. However, by 2025, emerging protocols like Babylon might cause a significant change, possibly causing approximately 1% of all BTC to transition into what is being referred to as “Bitcoin-Fi,” according to Veradittakit’s predictions.

According to Veradittakit, this year is seeing a surge in participation from 1% of Bitcoins due to the allure of Bitcoin finance protocols that don’t need bridging (such as Babylon), their high returns, soaring Bitcoin prices, and growing demand for additional BTC assets like runes, Ordinals, and BRC20.

Gateways

Platforms such as PayPal, Venmo, WhatsApp, and TON (backed by Pantera Capital) are increasingly serving as primary gateways for crypto users, according to Veradittakit. He highlights that these services provide a seamless way for users to engage with cryptocurrency without limiting them to particular systems or protocols.

Users of WhatsApp are now able to transfer funds using stablecoins, thanks to services such as Felix. On the other hand, Venmo has started offering cryptocurrency purchases via MetaMask for its users. Veradittakit predicts that, considering ongoing trends, fintech platforms might soon match or even surpass smaller crypto exchanges in the not-so-distant future.

It’s likely that every financial technology (fintech) company will act as a doorway for cryptocurrencies, either by design or due to their capability to integrate third-party applications. As these fintech solutions expand in popularity, they could potentially compete with smaller centralized crypto exchanges in terms of cryptocurrency holdings.
Paul Veradittakit

Unichain to lead l2 transactions

The potential impact of Uniswap within the layer-2 environment might establish Unichain as the frontrunner in terms of transaction volume.

As a researcher, I’m observing an interesting trend: The platform we’re focusing on currently contributes a substantial portion of transactions on established Layer 2 solutions such as Arbitrum, backed by Pantera Capital, and Base. Veradittakit posits an intriguing scenario: if Unichain were to secure even half of Uniswap’s trading volume, it would effortlessly outrank the current leaders in terms of transaction volume among Layer 2 solutions, potentially becoming the dominant player in this space.

NFTs will make a comeback

NFTs (Non-Fungible Tokens) are not just limited to collectibles anymore. According to Veradittakit, they’re being employed in various sectors such as gaming, artificial intelligence, identity authentication, and consumer applications. To illustrate this, consider Blackbird’s restaurant rewards app and Sofamon’s web3 bitmojis.

Veradittakit points out that NFTs aren’t limited to being utilized only for identification, transactions, transfers, ownership, and membership purposes; they can also serve as a means to represent and evaluate assets. This versatility, he noted, is what gives NFTs their strength.

Restaking protocols to debut mainnets

2025 marks the anticipated launch of main networks for protocols such as EigenLayer and Karak, which could broaden the scope and utility of staking mechanisms across various interconnected networks.

Reinvesting (restaking) offers investors an opportunity to generate returns across multiple networks, contributing value as protocols keep advancing. Veradittakit acknowledges that despite a decrease in focus on reinvesting lately, the sector continues to be a substantial “multi-billion dollar market.

Bringing web2 data on blockchain

As a crypto enthusiast, I’m keeping an eye on an innovative technique that’s making waves in the crypto world – zkTLS. This approach enables websites to confirm and distribute their data on the blockchain, all while safeguarding sensitive information. Although it’s still under development, its potential for privacy-preserving solutions is exciting.

Nevertheless, Veradittakit posits that this technology holds immense potential, especially for oracles and data services, as it may revolutionize the way information is authenticated and managed within blockchain systems.

As an analyst, I’m expressing my belief that we’re on the cusp of a novel development. I anticipate businesses will take the lead in creating and implementing this technology within their on-chain services, potentially as verifiable oracles for non-financial data or cryptographically secured oracles for data verification.
Paul Veradittakit

Crypto-friendly regulatory shift

For the first time in several years, it seems that the United States’ regulatory environment is becoming more crypto-friendly. The current SEC chairman, who has been critical of cryptocurrencies, Gary Gensler, has announced his resignation effective from January. His probable replacement, Paul Atkins, is widely seen as a supporter of cryptocurrencies.

As a crypto investor, I’m thrilled about President-elect Trump’s announcement of a legal framework for cryptocurrencies. David Sacks, who will be our “AI & Crypto Czar,” will lead this initiative. I’m optimistic that this new environment will minimize lawsuits, bring clarity to crypto regulations, and streamline tax considerations, making it easier for us all to navigate the crypto space.

According to Pantera’s forecasts, the integration of cryptocurrency into everyday finance and tech is likely to increase significantly. As Veradittakit explains, these developments are expected to gather pace, implying that 2025 could be a critical year for the crypto sector.

2025-01-13 19:05