Blockchain, Web3, Cryptocurrencies in 2025

My name is Bohdan Borysov, and this is the first article in my blog. In upcoming articles, I will share more about myself and my experience. For now, let’s focus on what I believe will fuel the next bull run.

It’s important to note that I don’t position myself as a financial analyst. Like many of you, I came into the world of blockchain on my own, learning everything through practice. My personal thoughts may not align with your views, and I welcome discussion and the exchange of ideas.

4 Possible Candidates for Adoption

1. RWA (Real World Assets)
2. Stablecoins: Why Are Companies Striving for Their Own Currency?
3. Deregulation: The Response of Monetary Policy
4. Layer 2: Everyone Wants Their Own Network

RWA (Real World Assets)

Over the past year, the concept of tokenizing real-world assets (RWA) has become a true gold rush. While we may not have started to dig deeper yet, like the dwarves in the mines of Erebor, we’ve made significant strides in the last three years. In 2022, according to DefiLlama, the total value locked (TVL) was only $150 million. By 2023, it had grown to $758 million, and by 2024, it reached an impressive $5.32 billion. The peak occurred at the end of August when the TVL hit $7 billion.

Large funds, such as BlackRock and Franklin Templeton, have begun to create their own tokenized assets. The first of these is treasury bonds. Who would have thought we would be buying government debt in crypto? It’s akin to someone saying in childhood that soon we could exchange baseball cards for stocks — it sounds strange, but it’s happening!

Of course, these aren’t the first attempts at tokenizing real assets. There are protocols like Synthetix that offer real asset tokenization, and Goldfinch, which allows lending without holding crypto assets while interacting with real-world organizations. Morpho has taken it even further by creating tokenized funds.

Why is this boom happening now? There are several reasons. First, regulations are becoming more lenient. Governments realize they can no longer hold back investors and want to be part of this world. Second, technology is helping to bridge the two realms — blockchain and the real world. For example, Chainlink with its CCIP protocol expands the horizons of possibilities, acting as a bridge connecting two shores.

Finally, the third point is trust. The AAVE platform, which collaborates with BlackRock, has conducted its audits, and the reliability of AAVE’s smart contracts has attracted the attention of institutional investors.

This trend won’t subside next year, and I’m confident that attempts to tokenize bonds, stocks, and commodities will become as commonplace as trading through brokers, but significantly easier.

Stablecoins: Why Are Companies Striving for Their Own Currency?

I love the show “Billions.” In one season, Bobby said to Wags, “I want my own bank so I don’t have to rob myself.” This phrase reflects the reality we live in. We remember the collapse of 2008 when governments began injecting colossal resources to save the banks. Bankers demonstrated that they ran the world, but their actions led to financial ruin.

At that moment, many of us started seeking solutions to avoid such situations in the future. I’m not talking about legislation; I mean technology. A year after the collapse, Satoshi’s white paper was released, marking the beginning of the largest financial evolution to date.

Why Do We Need Stablecoins?

But why are companies keen on creating stablecoins? The answer likely lies in the fact that everyone wants to be a money printer. In September 2024, Tether published its earnings for 2023, which amounted to $6.2 billion. For comparison, BlackRock’s earnings were only $5.2 billion. Tether employs just 100 people, while BlackRock has 20,000 people. The disparity is enormous! While not everyone can replicate Tether’s success, many companies will want to get a piece of the pie.

Real-World Players

We see real-world players like PayPal already creating their stablecoins. Revolut has also announced its plans in this area, and I’m sure that by 2025, this list will grow by several more companies.

Diversity of Stablecoins

Many of my acquaintances ask: why are there so many stablecoins? Users can get confused by this diversity. It’s akin to choosing between Android and iOS phones. However, for farming, stable pools like USDT and USDC yield lower returns compared to newer options like crUSD, TUSD, LUSD, and FRAX, which offer better conditions.

We are on the cutting edge, with every company on the S&P 500 surely considering creating its own currency. I hope there will be enough tickers for everyone…

Easing Regulation: The Response of Monetary Policy

I’m not from the U.S., and I don’t claim to have a deep understanding of local politics, but I read a lot. My knowledge is mainly based on the memoirs of outstanding political figures—presidents, secretaries of state, diplomats, and spies. I believe in the principle that forewarned is forearmed.

The COVID period vividly demonstrated how an entire economy can collapse in just a few months and that billions are needed to save it. In such conditions, inaction is not an option. Governments began printing enormous amounts of money, which depreciated over time at a rapid pace. I observe this in my daily expenses: purchases of food, clothing, and transportation—the prices are rising at lightning speed, and this has certainly affected my circle as well.

Many readers of this article have experienced at least one bull market, and perhaps two or three. The bull market that began in 2020 and ended in the fall of 2021 showed us what happens when there is too much money: everyone strives to get even more. As of October 2024, after Bitcoin fell to $16,000, it has rebounded to $68,000. This indicates that investors still believe in its future despite the fluctuations.

Presidential candidates are eager to accept cryptocurrency as donations. At rallies, they share their plans for regulation, each ready to ease control to attract voters. It’s important to remember that a new generation wants to work with cryptocurrencies without restrictions. I believe that any limitations stifle innovation. Where would we be without bureaucratic obstacles?

Nonetheless, here we are, and a new era of cryptocurrency acceptance is likely beginning. It’s time to adapt to new conditions and open doors to the opportunities presented by blockchain and the crypto industry. It’s crucial to remember that technology moves forward, and those who can adapt quickly will be the winners.

Layer 2: Everyone Wants Their Own Network

Arbitrum and Optimism have sparked a true revolution in the blockchain space. For those who have used Ethereum as their primary network, it became clear that transaction fees have dropped, and processing speeds have significantly increased. For many new users, this is taken for granted. I’ll be honest: my experience didn’t start with EVM but with the Cosmos ecosystem, which was more accessible and seemed quite revolutionary at that time.

Arbitrum and Optimism have demonstrated that creating your own networks encourages developers to build new solutions. These networks have generated enormous revenues. At the same time, Ethereum has become inflationary. The “London” upgrade, which implemented a coin-burning mechanism, is no longer producing the expected effects, and Ethereum has once again become inflationary.

Now, Uniswap is looking to create its own network—UniChain—and Ape, which originally positioned itself as an NFT project, is also planning to launch its own network. zkSync aims to create something similar to what Cosmos has done but with a more modern approach. Ethereum is becoming a hub for transactions, while validators have started earning less.

I believe that 2025 will be the year of many new networks emerging. I like to compare these networks to individual countries, each with its own policies, values, beliefs, and goals. However, despite this diversity, we are moving from simple to complex, even though layer-2 solutions were supposed to provide us with invaluable experience.

Aave also plans to launch its own network in 2027. From all this, we can conclude that the largest protocols will have their own networks. It will be amusing to see how this affects the Ethereum network itself. If Uniswap moves its operations and creates a surge of interest in using its network, users will migrate there en masse. We know that Uniswap burns about a quarter, if not more, of the gas on the Ethereum network, so such a blow would impact miners’ revenues.

I believe that this strategy will also attract new users to this wonderful new world.

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Thank you for taking the time to read! See you next time!