Layer 1s, RWAs, Bitcoin Lead the Future

Messari’s Crypto Theses for 2025 offers a comprehensive analysis of the crypto industry’s current state and its future.

The report highlights critical trends, major players, and transformative technologies shaping the sector at a pivotal moment.

Projections for the Next Year

The report begins by emphasizing resilience. Despite facing headwinds such as high-profile bankruptcies, increased regulatory pressure, and layoffs across key firms, the crypto industry remains durable. The collapse of FTX in 2022 and subsequent regulatory crackdowns created uncertainty, but these crises also weeded out unsustainable models.

Layer 1 blockchains like Ethereum and Solana demonstrated their strength by continuing to build adoption and scaling solutions. At the same time, Bitcoin’s market cap dominance rebounded as it solidified its position as a store of value and institutional asset.

Another major theme that Messari identifies for 2025 is a return to fundamentals. The industry is shifting back toward decentralization, permissionless systems, and user-centric innovation. This marks a departure from the speculative, centralized ventures that contributed to collapses in recent years.

The rise of decentralized finance (DeFi) protocols like Aave and MakerDAO reinforces this shift, as these platforms continue to grow without relying on intermediaries. The focus on decentralization has also been reflected in protocols working to improve governance and increase on-chain activity.

Bitcoin Dominance, RWAs, and DeFi

Messari highlights investment themes expected to dominate 2025, with Bitcoin and tokenized real-world assets (RWAs) standing out. Bitcoin’s success in 2024 signals strong institutional confidence supported by products like Bitcoin ETFs.

At the same time, tokenized RWAs are poised to reshape markets by bringing traditional assets, such as real estate, bonds, and stocks, onto blockchain networks. Projects like Centrifuge and Ondo Finance have emerged as key players in bridging traditional finance with blockchain technology.

Influential figures and companies are also identified as drivers of innovation. Individuals like Vitalik Buterin remain at the forefront of blockchain scaling solutions, such as Ethereum’s rollups and Layer 2 networks like Optimism and Arbitrum.

Companies like Coinbase and Robinhood Crypto are adapting to regulatory changes and strengthening their global presence. This is particularly true in Europe, where the Markets in Crypto-Assets Regulation (MiCA) provides a favorable framework for growth.

Crypto Regulation: Europe Leads, US Faces Promising Uncertainty

The report also discusses the importance of policy developments. Thanks to MiCA, regulatory clarity in regions like the European Union has laid the groundwork for increased adoption. However, uncertainty persists in the United States.

Messari points to the US Securities and Exchange Commission’s (SEC) ongoing legal battles with firms like Coinbase as a critical area to watch in 2025. The outcome of these cases will shape how crypto assets are classified and traded in one of the world’s largest financial markets.

Finally, technical breakthroughs are set to redefine the crypto industry. Advancements in scalability and data management are addressing blockchain’s most pressing limitations. Layer 2 solutions, such as Ethereum rollups and the Lightning Network on Bitcoin, have significantly improved transaction speeds and reduced costs.

Additionally, the integration of artificial intelligence with blockchain technology is emerging as a transformative trend. AI-driven smart contracts and decentralized data solutions are expected to automate financial processes and enable new applications, solving scalability and automation challenges that hinder wider adoption.

“As we head into the next year, the AI x Crypto sector is still one of the most enticing and uncharted spaces within the crypto world. While sectors like DeFi have become established categories, AI x Crypto remains an emerging vertical with external tailwinds from the booming AI industry. The bull case for this space is that it will successfully connect two of the most explosive sets of technologies,” Messari analysts wrote.

Messari’s Crypto Theses for 2025 paints a picture of an industry that has endured adversity but remains poised for innovation. By focusing on decentralization, regulation, and technological advancements, the sector is maturing into a more transparent ecosystem.

With Bitcoin’s continued dominance, the rise of RWAs, and the regulatory framework in Europe, 2025 could mark a turning point in crypto’s evolution.