Insights From Dragonfly Capital’s Leader

Haseeb Qureshi, managing partner at Dragonfly Capital, outlined his crypto predictions 2025 via X, forecasting transformative trends that could significantly alter the crypto landscape. Here are the detailed insights from each of the key areas Qureshi covered:

Crypto Predictions 2025 By Haseeb Qureshi

#1 A Blurring Line Between L1s/L2s: In his crypto predictions 2025, Qureshi forecasts the diminishing distinctions between Layer 1 and Layer 2 networks, forecasting a major consolidation within the blockchain industry. “The era of differentiating L1s from L2s based on technical capabilities is over. It’s now about carving out niches and enhancing user stickiness,” he declares.

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This shift implies a future where strategic market positioning and user experience outweigh pure technological innovation. “EVM will not only retain its dominance but expand, driven by platforms like Base, Monad, and Berachain,” he further asserts. Qureshi credits this growth to the vast repositories of Solidity training data, which will empower language models to write advanced application code in 2025, marking a significant transition towards AI-driven development within blockchain ecosystems.

#2 Better Token Launches: Qureshi’s crypto predictions 2025 also foresee a revolution in token distribution mechanisms. He sees the industry moving away from large-scale airdrops, which often prioritize quantity over quality of engagement. “We’ll see a more strategic approach, where token distribution is aligned with long-term user engagement and project viability,” he notes.

For projects with clear metrics and defined goals, tokens will be used as tools to enhance user retention and incentivize meaningful interactions. Meanwhile, projects lacking concrete metrics will likely pivot towards structured crowdsales to build and maintain a dedicated user base.

Furthermore, he predicts that “memecoins will continue to lose market share to AI agent coins. I consider this a migration from financial nihilism to financial over-optimism. (Yep I’m coining that.).”

#3 Accelerated Stablecoin Adoption: Stablecoins are set to become a cornerstone of business transactions for small and medium-sized businesses (SMBs) seeking reliable and instant financial settlements. “We’re on the brink of seeing SMBs broadly adopt stablecoins, driven not just by their efficiency but by increasing institutional trust and involvement,” Qureshi noted.

He anticipates significant movements from banks, including new stablecoin launches as financial institutions seek to capture part of this burgeoning market. Moreover, he remarks, “With Howard Lutnick as Secretary of Commerce, institutional hesitance will decrease, securing Tether’s top position amidst growing competition.”

He adds, “Expect Ethena to gobble up even more capital, especially as treasury yields continue to decline over the coming year. When the opportunity cost of capital declines, it makes basis trade yields even more attractive.”

#4 A Cautious Regulatory Advance: The regulatory outlook within Qureshi’s crypto predictions 2025 suggests a mixed bag of advancements and setbacks. According to him, 2025 will witness evolving regulations, with specific legislation around stablecoins likely to pass in the US.

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However, comprehensive market reforms such as the Financial Innovation Technology of the 21st Century Act (FIT21) might face delays. “While we see the regulatory framework for stablecoins strengthening, broader financial technology reforms will lag, creating a piecemeal regulatory environment,” he predicts.

Additionally, Qureshi foresees that Fortune 100 companies will become more willing to offer crypto to consumers under the Trump administration. “Trump’s inauguration will create a perceived regulatory jubilee until clear rules and enforcement priorities are set. During this window, expect to see aggressive expansion of crypto integration into Web2 platforms,” he remarks.

#5 AI Agents Will Evolve Beyond The Hype: A significant portion of Qureshi’s crypto predictions 2025 involves the role of AI agents in reshaping the crypto landscape. He criticizes the current state of AI agents, suggesting, “Today’s AI agents are essentially sophisticated chatbots linked to cryptocurrencies. They lack true agency and are primarily designed for interactions rather than autonomous operation.”

Despite these limitations, he believes the role of AI in crypto will grow significantly, moving from novelty to necessity. “AI’s capability to automate and enhance blockchain operations will lead to a software development renaissance, drastically lowering the barriers to entry for blockchain applications,” he forecasts.

#6 Crypto x AI: Looking beyond 2025, Qureshi envisions a deeper integration between crypto and AI technologies. “As we refine AI capabilities and regulatory frameworks, crypto will increasingly facilitate AI operations, leading to autonomous agents conducting transactions and managing their own economies on blockchain networks,” he stated. This interplay is expected to revolutionize user experiences and operational efficiencies, paving the way for a new era of decentralized and autonomous digital ecosystems.

At press time, the total crypto market cap stood at $3.31 trillion.

Featured image from YouTube, chart from TradingView.com