With the change of administration, the formation of a crypto task force led by industry ally Hester Peirce and record-high prices, the winds are finally turning for web3. 

The pro-crypto voice in the 2024 United States presidential election proved digital assets are no longer a fringe conversation or nascent industry. 2024 set the stage to make 2025 the most interesting year in crypto’s 16-year history. 

Decential spoke with key leaders across policy, market, finance and technology to capture the sentiment of the year ahead. 

Broad outlook and predictions 

Jayendra Jog, co-founder of Sei Labs and “Forbes 30 Under 30 2024” winner for finance, predicts there will be more interest in the space from start-up founders. 

“With a new, pro-crypto administration in office, I expect to see greater regulatory clarity for digital assets that will allow startup founders to feel confident in establishing new crypto companies and lead to greater technical innovation in the space,” Jog said. 

“Greater regulatory clarity will also lead to increased institutional and VC interest in crypto,” he said. “There have also been mentions of creating a zero-percent tax rate on certain types of cryptocurrencies. This would have large ramifications for the space, as it would lead to greater investor and startup founder interest, helping accelerate growth.”

Todd Ruoff is an ex-Wall Street vice president and current CEO of Autonomys, an infrastructure provider bringing decentralized AI applications on-chain. He believes AI integration into the blockchain will accelerate this year. 

“Those who control compute and data will dictate the next phase of digital economies. This approach is likely to spur innovation and investment in the industry as entrepreneurial talent that was forced offshore returns to the United States,” Ruoff said. 

Ruoff said the web3 workforce is about to change. 

“Tokenized assets, decentralized identity, and AI-driven financial models will change how people work, get paid and access capital. We’ll see more web3 jobs, but they’ll be in different forms – AI-assisted research, decentralized AI training and automating cross-border payments. The traditional job market isn’t where this shift is happening.” 

Market dynamics 

Ruoff predicts a potential peak in the market between mid-September to mid-October. While the mainstream media spins a story of a “big crypto crash” to come, which Ruoff said couldn’t be ruled out, “it’s also possible that the market could experience a more moderate correction or consolidation phase rather than a catastrophic bust.

“We’re at an inflection point driven by institutional demand, AI-driven trading and macroeconomic instability. If Bitcoin functions as a liquidity sink, we’ll see new highs. If regulation stifles decentralized markets, capital will migrate elsewhere – possibly into AI-driven asset markets,” Ruoff said. 

Policy 

Regarding movements in policy and regulation, experts predict a less aggressive enforcement approach. Joe Doll, general counsel at Magic Eden, said more favorable regulations will have a ripple effect globally.  

“The government will adopt policies that support crypto innovation such as stablecoins and NFTs, recognizing the legitimacy of crypto projects. Regulations focusing on consumer protection would also likely be implemented to ensure security and transparency, which could significantly boost mainstream adoption of digital assets,” Doll said. 

He noted that crypto is a relatively new industry and still evolving so it requires a longer period of time to establish clarity. That can leave space for innovation and experimentation, he said.

Laurenth Alba, an attorney and business development lead at Rome Protocol, agreed with Doll. 

“We’re likely to see more innovation with [exchange-traded funds] due to the success of [Bitcoin] and [Ether] ETF launches last year. Tokens such as [Solana] and XRP are predicted to be the next ETFs to be approved, which would be another step towards cementing crypto as a mature asset class,” Alba said. 

Stablecoins 

Luca Prosperi, CEO and co-founder of stablecoin infrastructure provider M^0 predicts stablecoins will have a big year. 

“Projects will continue scaling, raising capital and integrating into more industries,” Prosperi said. “Success will favour teams that balance technological innovation with pragmatic market strategies while attracting the capital needed for exponential growth. 

“On a pragmatic level, I’m betting on the following. A 25-30 percent price increase in major commodity-like crypto assets such as BTC, ETH, and SOL, albeit with significant interim volatility. A global dollar-denominated stablecoin float surpassing $200 billion. Another large tech company acquiring a crypto-native firm, further bridging traditional and crypto industries, and at least two crypto-native companies going public through IPOs, signalling maturation and growing investor confidence.”