As we bid farewell to 2024 and welcome a new year, the decentralized finance (DeFi) space is poised for significant growth. Several industry executives shared their insights with Cointelegraph, predicting that Bitcoin staking, real-world asset (RWA) tokenization, and agentic artificial intelligence will be major catalysts driving DeFi adoption in 2025.
Bitcoin Staking: Unlocking New Opportunities
In 2024, the price of Bitcoin surpassed $100,000 per coin for the first time, with investors pouring over $100 billion into spot BTC exchange-traded funds (ETFs). This milestone is expected to reignite interest in crypto from institutions and regulators alike, revitalizing the entire crypto sector in 2025.
"Bitcoin’s all-time high will spark renewed interest in crypto from institutions and regulators alike and should reinvigorate the entire crypto sector in 2025," said Dean Tribble, CEO of layer-1 network Agoric Systems. "The current state of affairs is a perfect storm for DeFi adoption."
Total value locked (TVL) in DeFi protocols has been steadily increasing, reaching $130 billion in December, nearing its all-time high of around $175 billion in 2021, according to data from DefiLlama.
"By 2025, DeFi infrastructure and blue-chip protocols like Aave, Maple, Maker will have been operating at scale for over four years," said Jacob Phillips, co-founder and head of strategy at Bitcoin staking protocol Lombard. "These platforms will become reliable venues where institutions and new users put Bitcoin to work."
Real-World Asset (RWA) Tokenization: Unlocking New Markets
The tokenization of real-world assets has been gaining momentum in recent years, with the market size estimated to reach $30 trillion globally.
"Tokenizing real-world assets like real estate and carbon credits will unlock unprecedented liquidity," said Raj Brahmbhatt, CEO of Web3 settlement platform Zeebu. "Advancements in payments will further streamline cross-border transfers."
The US Treasury Department has also highlighted the potential benefits of tokenization, including improved liquidity and reduced operational and settlement frictions.
Agentic Artificial Intelligence: Revolutionizing DeFi
In 2024, tokens linked to agentic AIs collectively bootstrapped nearly $10 billion in market capitalization, according to CoinGecko. Analysts expect the fusion of artificial intelligence and blockchain technology to transform Web3, creating a future where self-directed AIs build decentralized applications and transact with human users.
"Agentic AI has already proven central to the future of the industry," said J.D. Seraphine, CEO of AI protocol Raiinmaker. "AI agents are expected to take on a more prominent role within decentralized communities in 2025."
The Rise of Bitcoin Staking ETFs
Matt Hougan, head of research at asset manager Bitwise, predicts that Bitcoin staking ETFs may gain traction in 2025.
"There’s a lot of demand for Bitcoin yield," said Hougan. "Whether it makes it into an ETF structure in the United States, I’m not sure, but in Europe, definitely."
Liquid Staking Tokens (LSTs) and Their Growing Adoption
Liquid staking tokens represent claims on staked BTC and have been proliferating rapidly. As of December 19, Bitcoin LSTs command upward of $2.5 billion in total value locked (TVL), according to stakingrewards.com.
"We have spoken with dozens and dozens of large Bitcoin DeFi users and funds keen to put their Bitcoin holdings to work earning yield," said Alexei Zamyatin, co-founder and CEO of Build on Bitcoin.
The Future of DeFi: Opportunities and Challenges
As the DeFi space continues to evolve, it’s essential to consider both the opportunities and challenges ahead. With agentic AIs, RWA tokenization, and Bitcoin staking ETFs poised to drive growth, the next year is expected to be a pivotal moment for the industry.
"It’s OK if you don’t know exactly what’s going to happen," said Hougan. "As long as you know that something is happening that’s really potentially significant and you want exposure to it."
Conclusion
The decentralized finance (DeFi) space is on the brink of an inflection point in 2025, driven by Bitcoin staking, RWA tokenization, and agentic artificial intelligence. As we look ahead, it’s essential to consider both the opportunities and challenges that lie ahead.
With the potential for significant growth, now is the perfect time to explore the DeFi space and uncover new financial opportunities. Stay tuned for more insights and analysis from Cointelegraph as we continue to break down the latest DeFi developments.
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