Flywheel's 2025 Crypto Predictions

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We're just back from break and our staff had time to pause and think about the previous year and plan for the upcoming one.

Sam’s Top 10 Predictions for 2025

The crypto world is set for another rollercoaster year in 2025. Here are my bold predictions for what’s ahead:

1. The Trump Pump Peaks in January

With Trump as the first openly pro-DeFi president, optimism runs high—but only briefly. Anti-crypto bureaucrats still control the SEC, CFTC, FDIC, and DOJ, and the market faces its first big enforcement actions. Expect a sharp 20-30% dump early on, but by mid-summer, the tides will turn. Bitcoin could close the year at an all-time high of $200,000.

2. Strategic Bitcoin Reserve Goes Nowhere

The much-hyped Strategic Bitcoin Reserve (SBR) will dominate headlines but fail to gain meaningful traction in Congress. The U.S. will likely just hold onto seized Bitfinex BTC rather than buying more on the open market. "Seized but not returned Reserve" doesn’t have the same ring to it.

3. CFTC Becomes the New Villain

As the SEC loses its grip, the CFTC takes over as DeFi’s biggest foe. Without new legislation, almost all DeFi projects outside of vanilla swaps could face legal trouble. The crackdown intensifies, leaving the industry scrambling.

4. Stablecoins Break $500 Billion Issuance

Stablecoins will hit a major milestone as total issuance surpasses $500 billion. With clearer guidance from the Federal Reserve and FDIC, along with the passage of a stablecoin bill, banks finally dive into the stablecoin game.

5. Bear Market for L2s and Alt-L1s

The Layer 2 and alternative Layer 1 ecosystem faces a tough year. Base and Solana will hold their ground as leaders in the SVM/EVM space, but new capital will be hard to come by for other networks. Kraken’s Ink might be the only exception.

6. Privacy Tech Gets a Boost

Privacy-focused projects will thrive after key parts of the Tornado Cash ruling are limited in scope. This will give private-DeFi the breathing room it needs to escape its existential crisis.

7. Ethena’s Summer Meltdown

The delta-neutral fund at the heart of DeFi faces a major hiccup, throwing markets into chaos. Ethena’s stumble will be a wake-up call for projects overly reliant on its integration.

8. Elon Brings Stablecoins to Twitter

Elon Musk will add stablecoin payments to Twitter, using his own custom stablecoin. This move cements Twitter’s role as a key player in the crypto ecosystem.

9. BTC Restaking Protocol Disaster

A major Bitcoin restaking protocol or Layer 2 will suffer a catastrophic hack or exploit, leading to billions in stolen funds. The incident will spark debates about security in restaking models.

10. DeFi Giants Reach New Highs

It’ll be a banner year for some DeFi blue chips. Curve (CRV), Aave, and Lido (LDO) are all poised to hit all-time highs as the market recovers and matures.

Tim's Thoughts for 2025

AI in Marketing and DeFi

AI-Powered Team Members
We’re likely to see fully animated and voiced AI avatars acting as the public face of crypto projects. These virtual team members could answer questions, explain complex concepts, and represent the project in a way that’s engaging and accessible.

AI Agents in Social Spaces and Livestreams
Imagine AI-driven avatars hosting or participating in live discussions on platforms like X Spaces (formerly Twitter Spaces) or video livestreams. They’d bring consistency and scalability to community engagement, making it easier for projects to connect with their audience.

More AI-Generated Media
AI is going to take over a lot of content creation—videos, images, and written posts. It’ll make it faster and cheaper to produce high-quality content, helping projects share their stories more effectively.

AI Skills Becoming Essential
If you want to work in crypto marketing, you’ll need to know how to use AI tools. These skills are quickly becoming a must-have for creating and managing content.

Risks of AI Missteps
On the flip side, relying too much on AI without oversight could lead to big mistakes, like posting something controversial or even panic-inducing. Projects will need to keep a close eye on what their AI is doing.

What’s Happening in DeFi?

DeFi Is Gaining Ground on Traditional Finance
More people from traditional finance (TradFi) are moving into DeFi, drawn by its innovations in areas like stablecoins, remittances, and trading. DeFi is proving it can compete with the traditional financial world.

TradFi Adopting Blockchain
We’re also seeing big traditional financial companies using blockchain technology to get ahead. When they succeed, it makes headlines and drives even more people to check out what blockchain can do.

Another CEX Crisis Could Boost DeFi
A major centralized exchange (CEX) is likely to face a big security breach. When that happens, it’ll push more people toward DeFi and remind everyone of the importance of “not your keys, not your crypto.”

Regulations and the Next DeFi Boom

Friendlier Rules in the U.S.
The U.S. seems to be moving toward clearer and more crypto-friendly regulations. This could spark a huge growth phase for DeFi, bringing in more users, investment, and innovation. Tim calls it the “Second DeFi Renaissance,” and it sounds like an exciting time for the industry.

Anton's thoughts for 2025

2024 Trends

Telegram and TON as a New Wave of Crypto Adoption
Telegram’s integration of the TON blockchain has opened up exciting possibilities for crypto adoption. With its massive user base and seamless integration of blockchain features, Telegram has become a gateway for many to enter the crypto ecosystem. This trend has been particularly effective in driving adoption in regions where traditional financial systems are less accessible.

Institutional Adoption
This year marked a new era of institutional involvement in crypto. Large financial institutions have not only embraced blockchain technology but also diversified their portfolios with cryptocurrencies, legitimizing the space further. This trend has set the stage for a more stable and mature crypto market.

Elections as a Bull Run Catalyst
Major elections around the globe have acted as catalysts for crypto bull runs. The interplay between political events and market sentiment has highlighted how macroeconomic and geopolitical factors can drive significant movements in the crypto market.

AI Everywhere, Including Crypto
Artificial Intelligence has become ubiquitous, and its influence on crypto is no exception. From AI-driven trading strategies to enhanced security protocols and marketing campaigns, AI is reshaping how we interact with blockchain technologies.

Speculation on Memecoins and Prediction Markets
Retail adoption saw a surge, thanks in part to the speculation-driven excitement around memecoins and prediction markets. These areas have captured the imagination of retail investors, drawing them into the crypto space through a mix of entertainment and financial opportunity.

2025 Predictions: What’s Next in Crypto Marketing?

Looking ahead to 2025, here are the trends and transformations I anticipate will shape the future of crypto marketing:

AI Comes Out of the Lab

Synthetic Content Flood
We’re on the brink of an explosion in synthetic content. AI tools will flood the digital space with hyper-realistic media, from deepfake videos to automated articles, blurring the lines between human and machine-generated content.

Two Sides of the Barricades: AI-driven SEM and AI-optimized Search
Search engine marketing will evolve into a battleground for AI-driven strategies. While some will leverage AI to dominate SEM, others will focus on optimizing their platforms and content to align with these advancements.

AI-Augmented Community Marketing and Management
Community engagement will see a revolution as AI augments traditional marketing and management efforts. Personalized, real-time interactions powered by AI will elevate community experiences and foster deeper brand loyalty.

A New KOL Marketing Landscape

Synthetic Influencers
The rise of synthetic influencers is set to redefine key opinion leader (KOL) marketing. These AI-generated personas will dominate social media platforms, offering cost-effective, scalable, and highly customizable options for brands.

Evolution of Social Media Content and Engagement
Social media will undergo a radical transformation in how content is created, delivered, and consumed. Expect new engagement models that seamlessly blend synthetic and human influencers, as well as innovative content formats.

Synths and Humans Coexist: Embracing the Inevitable
As synthetic influencers take center stage, Proof of Personhood solutions will emerge to distinguish human creators. However, the coexistence of synths and humans will become a central theme in digital marketing.

Social Media Platforms Lead Adoption

Social media giants like X (formerly Twitter), TikTok, Meta, and LinkedIn could drive mainstream adoption by integrating blockchains, tokens, smart contracts, and mini apps. This integration will likely reshape how users interact with content and participate in digital economies.

Friendlier Regulations in Tier-1 Countries

As tier-1 countries adopt more crypto-friendly regulations, the focus will shift from user acquisition to retention. This pivot will emphasize Lifetime Value (LTV), better UX, and lessons from the gambling and gaming industries on user engagement and retention strategies. The industry’s challenge will be to balance compliance with innovation while delivering seamless user experiences.