2024 has been a standout year for the cryptocurrency market. Bitcoin (BTC) reached an unprecedented $100k, while Ethereum (ETH) climbed past $4k, setting new benchmarks for the industry.
In parallel, a series of compelling narratives have unfolded. The rapid rise of memecoins, advancements in AI, the tokenization of real-world assets (RWA), the ongoing expansion of GameFi, and innovations in decentralized physical infrastructure (dePIN) have energized the market and opened new possibilities.
Looking forward, VanEck—a globally recognized investment management firm—shared its predictions for 2025, providing insights into how these trends may evolve in the years ahead. Let’s take a closer look at some of them.
Market Momentum
VanEck predicts that this bull market will continue in 2025, with the first peak occurring in Q1. At the height of this cycle, according to the estimation, Bitcoin (BTC) will be priced at around $180,000, while Ethereum (ETH) could exceed $6,000. Notable projects like Solana (SOL) and Sui (SUI) might surpass $500 and $10, respectively.
After this initial peak, Bitcoin might experience a 30% drop, with altcoins potentially facing steeper declines of up to 60% as the market undergoes a summer consolidation. However, VanEck anticipates a rebound in the fall, with major cryptocurrencies regaining their momentum and reaching previous all-time highs by year-end.
AI Agents
VanEck also foresees a significant rise in the on-chain activity of AI agents, predicting that their numbers will exceed 1 million by 2025. These specialized bots are designed to optimize outcomes such as "maximizing yield" in DeFi or "enhancing engagement" on platforms like X/Twitter by autonomously refining their strategies.
Currently, platforms like Virtuals empower users—even those without technical expertise—to create AI agents for on-chain tasks. By tapping into decentralized contributors, including fine-tuners, dataset providers, and model developers, creators can build and lease AI agents to generate income. This accessibility will fuel a rapid increase in agent deployment.
While DeFi remains a central focus for AI agents, their utility is expanding into areas such as social media, gaming, and consumer applications. These agents can serve as influencers, interactive gaming characters, or digital companions. Some, like Bixby and Terminal of Truths, have already gained significant traction, amassing 92k and 197k followers on X/Twitter, respectively.
Bitcoin L2s
Another crucial development that could reshape the crypto ecosystem is the rise of Bitcoin layer-2 (L2) blockchains. These solutions are designed to scale Bitcoin more efficiently and open up new opportunities for its use cases. By enhancing Bitcoin’s transaction throughput and reducing latency, Bitcoin L2s are addressing the network’s existing limitations while adding new capabilities, such as smart contract functionality, which can drive a dynamic DeFi ecosystem centered around Bitcoin.
At present, Bitcoin can be transferred from the Bitcoin blockchain to smart contract platforms via bridged or wrapped BTC, which depend on third-party systems that are susceptible to hacks and security issues. Bitcoin L2 solutions aim to mitigate these risks by providing frameworks that connect directly with Bitcoin's base layer, reducing the need for centralized intermediaries. While challenges related to liquidity and user adoption persist, Bitcoin L2s offer the promise of enhanced security and decentralization, instilling greater confidence in BTC holders to engage actively with their Bitcoin in decentralized ecosystems.
The growth of Bitcoin L2s reflects increasing demand from BTC holders seeking to generate yield and expand the utility of their assets. As Bitcoin L2s and chain abstraction technology evolve into accessible tools, they will significantly strengthen Bitcoin’s position in the broader DeFi space. Platforms like Ika on Sui and Infinex on Near demonstrate how multi-chain solutions can enhance Bitcoin's interoperability with other ecosystems.
By facilitating secure and efficient on-chain borrowing, lending, and other permissionless DeFi solutions, Bitcoin L2s and abstraction technology will convert Bitcoin from a mere passive store of value to an active player in decentralized ecosystems. As adoption increases, these technologies will unlock significant opportunities for on-chain liquidity, cross-chain innovation, and a more interconnected financial future.
DeFi and NFTs
Despite significant trading activity on decentralized exchanges (DEXs)—with volumes surpassing centralized exchanges (CEXs) in some cases—the total value locked (TVL) in decentralized finance (DeFi) remains 24% below its peak. VanEck predicts that DEX trading volumes will exceed $4 trillion by 2025, capturing 20% of CEX's spot trading volumes. This growth will be driven by the rise of AI-related tokens and consumer-facing decentralized applications (dApps).
The introduction of tokenized securities and high-value assets will further propel DeFi’s expansion, adding new liquidity and enhancing its utility. As a result, the DeFi TVL is expected to recover to over $200 billion by year-end, reflecting growing demand for decentralized financial infrastructure in an evolving digital economy.
The NFT market, heavily impacted by the 2022–2023 bear market, has seen trading volumes decline by 39% since 2023 and an even steeper 84% drop since 2022. While fungible token prices have rebounded in 2024, NFTs have lagged in price and activity until a notable turnaround in November. However, certain projects have demonstrated resilience by building strong community connections and creating lasting value.
For instance, Pudgy Penguins have transformed into a consumer brand with collectible toys, while Miladys have gained cultural relevance in internet subcultures. The Bored Ape Yacht Club (BAYC) continues to grow as a prominent cultural entity, attracting attention from brands, celebrities, and mainstream media.
As crypto wealth recovers, VanEck expects affluent users to diversify into NFTs, viewing them not just as speculative assets but as investments with lasting cultural and historical importance. According to VanEck, established collections like CryptoPunks and BAYC could see benefits from this shift, despite significant drops from their all-time highs—down around 90% and 66%, respectively. Other projects, such as Pudgy Penguins and Miladys, have already surpassed their previous price records.
Ethereum remains the dominant blockchain for NFTs, hosting the majority of leading collections. In 2024, Ethereum accounts for 71% of NFT trading, a share that is projected to grow to 85% by 2025. This dominance is further reflected in market capitalization rankings, where Ethereum-based NFTs hold the top positions, underscoring its central role in the NFT ecosystem.
Although NFT trading volumes may not reach the euphoric heights of previous cycles, VanEck believes a sustainable market with annual turnover of $30 billion—roughly 55% of the 2021 peak—is within reach. This shift toward sustainability and cultural significance, rather than speculative frenzy, will shape the future of the NFT space.