In a revealing thread on X, Hitesh Malviya, the co-founder of DYOR—a pioneering on-chain analytics platform—has shared his intriguing predictions for the cryptocurrency landscape in 2025. These insights are crucial for anyone invested in the crypto space, as they highlight potential trends and shifts that could reshape the industry. Below, we delve into Malviya’s top 15 predictions that crypto stakeholders and enthusiasts should keep a close eye on.
US Regulation Of the Crypto Market In 2025
Malviya predicts that by 2025, the United States will have a formal regulatory framework for cryptocurrencies. He notes that while discussions have been ongoing for years, approval has yet to be granted. During the Trump presidency, Malviya foresees the emergence of favorable regulations that will significantly strengthen sectors with strong cash flows, with decentralized finance (DeFi) being a major beneficiary.
Sustained Memecoin Popularity
Despite the possibility of regulatory interventions, Malviya expects the memecoin sector to continue thriving. While initial regulations may impact memecoins, he believes that the market will eventually differentiate between hyper-speculative assets and those with fundamental value. Memes, however, are likely to remain popular among the majority, driven by the hope of substantial gains.
Expansion Of Hyperspeculative Markets
Beyond memecoins, Malviya predicts growth in hyperspeculative markets, with prediction markets gaining prominence. Platforms like Polymarket are expected to capture large audiences, offering speculation on various events and news.
DeFi Renaissance
A resurgence in DeFi is anticipated, with Malviya projecting that total value locked (TVL) in DeFi protocols will exceed $250 billion by the end of 2025. He highlights money markets like AAVE and notes the potential influence of Donald Trump’s crypto project, World Liberty Financial, in driving growth. Some DeFi coins may even reach market caps of $30 billion to $50 billion.
On-Chain Commodities Trading
The integration of commodities into blockchain ecosystems is projected to gain momentum. Malviya foresees various commodities being traded on decentralized exchanges (DEXs) by 2025. Ostium Labs is mentioned as an early mover in this space, with numerous projects expected to launch on-chain commodity trading platforms.
Stablecoin Market Cap Reaches $500 Billion
The stablecoin sector is set for substantial growth, with Malviya forecasting a market capitalization of $500 billion. New stablecoins are expected to capture market share from big players like USDC and USDT. The Reserve Protocol, which focuses on asset-backed stablecoins, is highlighted as a promising initiative in this expansion.
Rise of AI Art NFTs
Artificial Intelligence-driven art NFTs are anticipated to garner significant attention. Malviya predicts that AI artists, such as Refik Anadol, will attract NFT art collectors, with AI Art NFT collections potentially achieving floor prices of 100 Ethereum (ETH).
Staking-Driven Airdrop Mechanisms
Malviya forecasts major token launches from Polygon and EigenLayer, expecting staking to lead to ecosystem airdrops for holders. This could provide new opportunities and incentives for participation in these networks.
Peak And Decline Of Initial AI Offerings (IAOs)
The initial phase of IAOs is expected to reach its peak before experiencing a contraction. Malviya cautions that oversaturation will lead to the decline of many AI agents, with only those having quality data training and clear purposes likely to survive the impending “AI agent winter.”
Perpetual Bull Market Perception
Malviya suggests that while the perception of a bull market may persist, it will not be as straightforward as in the past. The market is expected to remain rotational, with a major correction resembling a bear cycle anticipated. However, an unexpected recovery influenced by potential black swan events could surprise many.
Focus On Privacy-Based Projects
Post-regulatory clarity under the Trump administration is expected to boost privacy-centric projects. Malviya emphasizes the importance of confidential transactions and private computation, with projects like Nillion likely to attract significant attention in the DeFi and DeAI sectors.
SUI Surpassing Solana In Daily Transactions
The SUI blockchain, leveraging the SocialFi narrative, is anticipated to surpass Solana in daily transaction volumes. Malviya expects SUI’s SocialFi apps to crack the creator economy code, bringing masses on-chain and driving transaction metrics beyond Solana’s.
Intense Competition Among Alternative Virtual Machines (AltVMs)
Competition among AltVMs is set to intensify, with contenders like Monad, MegaETH, Berachain, HyperVM, Sonic, and Sei in the spotlight. Malviya predicts that one will capture 75% of the market share within a year of launch, driven by community support and developer relationships.
Mainstream Adoption Of Web3 Wallets
Web3 wallets are expected to reach mainstream adoption with enhanced user onboarding and intuitive interfaces. The emergence of super apps and Web3 wallets from major exchanges like OKX and Binance is projected to drive widespread adoption through mobile platforms.
DEXs Capturing 30% Of Trading Volume
Finally, Malviya foresees decentralized exchanges (DEXs) significantly increasing their share of trading volumes. Currently, the DEX/CEX trading volume ratio is at 15%, but Malviya expects it to double within the next year. The shift towards on-chain trading is attributed to the benefits of self-custody and improved onboarding technologies, leading to increased on-chain user activity.
