Haseeb Qureshi, managing associate at Dragonfly Capital, shared his predictions for the cryptocurrency trade in a put up on social media platform X on Jan. 1.
Layer 1 and Layer 2 Networks
Qureshi predicted the excellence between Layer 1 (L1) and Layer 2 (L2) blockchains would proceed to fade in 2025, with customers paying little consideration to technical variations. He believes the crowded blockchain ecosystem will bear important consolidation, pushed much less by technological developments and extra by the flexibility of networks to carve out distinctive niches and create sticky consumer experiences.
Ethereum Digital Machine (EVM) networks are set to develop their market share, regardless of the rising reputation of options like Solana’s Digital Machine (SVM) and Transfer. Based on Qureshi, developments in giant language fashions (LLMs) will favor EVM-compatible networks because of their in depth libraries of current contracts and coaching information. THe expects instruments like LLMs to play a vital function in automating utility improvement, prioritizing ecosystems with sturdy foundations.
Solana’s emphasis on low latency will possible stress different blockchains to optimize consumer expertise. Qureshi predicted an trade shift from “transactions per second” (TPS) wars to “latency wars,” with infrastructure improvements reminiscent of ultra-low-latency Layer 2 options and progressive safety fashions pushing the boundaries of blockchain efficiency.
He additionally highlighted the success of Hyperliquid, a specialised chain centered on a single utility. This method, he argued, demonstrates the viability of specialised blockchains designed for particular use instances, changing the outdated dream of a “one chain to rule all of them.”
Token Launch Methods
Qureshi forecasted a shift in how initiatives distribute tokens, noting that large-scale airdrops primarily based on self-importance metrics will decline. As an alternative, he sees the emergence of two major tracks:
- Initiatives with measurable success metrics, reminiscent of exchanges or lending protocols, will reward tokens primarily based on consumer exercise. For these protocols, farmers are legit customers contributing to core efficiency indicators.
- Initiatives with out clear metrics, reminiscent of L1s and L2s, will lean towards crowdsales as their major distribution technique, reserving small airdrops for neighborhood contributions.
Moreover, Qureshi believes memecoins will lose reputation, giving method to “AI agent cash,” which replicate a shift from monetary hypothesis to optimism about AI-powered functions.
Stablecoin Adoption and Institutional Entry
The enterprise capitalist expects stablecoin adoption to develop exponentially in 2025, significantly amongst small and medium-sized companies looking for environment friendly settlement choices. Qureshi predicted that main banks will start issuing their very own stablecoins by the top of the yr as they try to compete within the digital finance house. Nonetheless, he maintained that Tether will proceed to dominate the market below the present U.S. administration.
Ethena Labs, a key participant within the stablecoin ecosystem, is positioned to seize important capital, in accordance with Qureshi. With treasury yields anticipated to say no, he believes that blockchain-based yields will develop into more and more engaging.
Regulation and a Shifting Panorama
Qureshi anticipates the U.S. will cross stablecoin laws in 2025, spurring additional adoption of those digital currencies. He thinks broader market infrastructure modifications, together with the Monetary Innovation and Know-how for the twenty first Century Act (FIT21), are more likely to face delays, slowing the combination of conventional monetary establishments with blockchain applied sciences.
Below the Trump administration, Qureshi predicts a brief regulatory reprieve, which he described as a “jubilee” for the crypto trade and expects this perceived window of alternative to drive aggressive enlargement as Fortune 100 firms and startups combine crypto companies into their platforms.
The Evolution of AI Brokers
AI brokers will dominate the crypto panorama in 2025, Qureshi predicted, however he provided a nuanced view of their present and future roles. He described lots of in the present day’s AI brokers as “Wizard of Oz” techniques, the place human intervention ensures performance, masking the brokers’ lack of true autonomy. Though he acknowledges that these bots may doubtlessly change some influencers and automate real-time info aggregation, he says that their reliance on human oversight limits their capabilities.
Qureshi recommended that the novelty of AI brokers would maintain curiosity via 2025, however this fascination may fade by 2026 because the instruments develop into ubiquitous. He believes the market will finally shift towards favoring human influencers over bots, pushed by a need for authenticity. Nonetheless, he factors out that this sentiment may set off AI brokers to disguise themselves as people, resulting in unmasking scandals and moral debates.
On a darker be aware, Qureshi warned of a possible explosion in autonomous scambots, corresponding to the rise of ransomware in earlier years. He talked about that these malicious brokers may exploit blockchain techniques for fraudulent actions, posing important safety challenges.
Regardless of these issues, Qureshi recognized software program engineering brokers because the true disruptors, saying that these instruments have the potential to revolutionize blockchain improvement by dramatically lowering the fee and complexity of making new functions. He envisions a future the place initiatives can launch with minimal funding, fostering an period of unprecedented experimentation and innovation.
AI-powered safety options may additionally improve blockchain security, Qureshi argued. He predicts the widespread adoption of AI for static evaluation, real-time monitoring, and adversarial testing, in the end giving defenders an edge over attackers. He thinks that these developments may make blockchain ecosystems safer and accessible to builders and customers alike.
The Convergence of Crypto and AI
Qureshi additionally explored how AI may affect the crypto trade and vice versa. He believes autonomous AI brokers will use crypto for funds, significantly stablecoins, because of their simplicity and accessibility. He pointed to decentralized AI coaching and inference as a rising space of experimentation, with promising initiatives already paving the best way for options to centralized AI fashions.
Qureshi believes AI-powered wallets may revolutionize consumer expertise by automating duties like bridging belongings, optimizing charges, and figuring out scams. This evolution, he famous, may redefine blockchain community results as customers develop into much less involved with the underlying chains powering their functions.
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