Trends We’re Watching
a16z has released a comprehensive list of “big ideas” for the coming year, based on observations from its partners in the fields of AI, US vitality, life sciences/health, cryptocurrency, enterprise services, fintech, gaming, and infrastructure. The list aims to inspire technology builders.
Here are some important ideas shared by the cryptocurrency team members, and you can read the full article for more exciting content.
If you want to learn about the outlook for 2025 in terms of policies, regulations, and more, please refer to the article published in November.
More Businesses Will Accept Stablecoin Payments
In the past year, stablecoins have found the right fit between products and markets – this is not surprising, as stablecoins offer the lowest cost method for transferring US dollars, enabling fast global payments. Additionally, stablecoins provide entrepreneurs with a more convenient platform to develop new payment products, without the need for intermediaries, minimum balance restrictions, or exclusive SDKs. However, large enterprises have yet to realize the enormous cost savings and new profit opportunities that come with transitioning to these payment rails.
While we have already seen some businesses show interest in stablecoins (particularly in peer-to-peer payments), I expect a larger wave of experimentation in 2025. Small to medium-sized enterprises with strong brand influence, loyal customer bases, and high payment costs (such as restaurants, cafes, and convenience stores) may be the first to switch from credit cards to stablecoin payments.
These businesses do not benefit from credit card fraud protection (especially in face-to-face transactions), and the high transaction fees have a significant impact on their profits (the cost of 30 cents per cup of coffee is huge for profit losses).
We should also expect larger-scale enterprises to start adopting stablecoins. If stablecoins can accelerate the evolution of banking, businesses will attempt to disintermediate payment service providers – adding 2% profit directly to their bottom line. Additionally, businesses will seek new solutions to address the problems currently solved by credit card companies, such as fraud protection and identity verification.
-Sam Broner (X platform @sambroner | Farcaster platform @sambroner)
Countries Exploring On-Chain Government Bonds
On-chain government bonds create government-backed digital assets with interest, while avoiding the privacy concerns that come with central bank digital currencies (CBDCs). These products can provide new sources of collateral demand for lending and derivative commodity protocols in DeFi (decentralized finance), thus adding more stability and credibility to these ecosystems.
As governments worldwide continue to explore the advantages and efficiency of public, permissionless, and tamper-proof blockchains, some countries may pilot the issuance of on-chain government bonds. For example, the UK has already explored digital securities through its sandbox project established by the Financial Conduct Authority (FCA), and the UK Treasury has expressed interest in issuing digital bonds.
In the US, due to the SEC’s plan to require the clearing of government bonds through traditional cumbersome and costly infrastructure next year, more discussions are expected on how blockchain can improve the transparency, efficiency, and participation in bond transactions.
-Brian Quintenz (X platform @brianquintenz | Farcaster platform @brianq)
The Shift from Holders to Users: The Transformation of Crypto Users
In 2024, the crypto space made significant progress on the political front, with many key policymakers and politicians expressing positive views on it. At the same time, crypto as a financial movement continued to evolve, with products like Bitcoin and Ethereum ETP broadening investor participation. In 2025, crypto is expected to further develop into a computing movement. But where will the next user group come from?
I believe it is time to re-activate the currently “passive” crypto asset holders and transform them into more active users. Currently, only 5-10% of crypto asset holders actively use crypto technology. We can bring the 617 million people who already hold crypto assets onto the chain, especially as blockchain infrastructure continues to improve and user transaction costs continue to decrease.
This means that new applications will gradually emerge for existing and new users. Additionally, some early applications we have already seen – covering stablecoins, DeFi, NFTs, gaming, communities, DePINs, DAOs, and prediction markets – are becoming more easily accepted by mainstream users as the community focuses more on user experience and other optimizations.
-Daren Matsuoka (X platform @darenmatsuoka | Farcaster platform)
“Hidden Tech Details” Empowering the Birth of Killer Web3 Applications
The technological advantages of the blockchain industry make it unique, but to some extent, it hinders mainstream user adoption. For creators and fans, blockchain technology offers new possibilities for connectivity, ownership, and monetization. However, industry-specific terms (such as “NFTs” and “zkRollups”) and complex designs have become barriers for those who could benefit the most. Through numerous discussions with high-level executives from media, music, and fashion industries about Web3, I have gained a deep understanding of this issue.
The widespread adoption of many consumer technologies has followed a similar path: technology comes first, and then a landmark company or designer abstracts away the complexity, leading to breakthrough applications. Think about the development of email – the SMTP protocol was hidden behind the “send” button. Or credit cards, where most users today don’t care about the payment rails behind it. Similarly, Spotify’s music revolution was not achieved by showcasing file formats, but by delivering playlists directly to users’ fingertips. As Nassim Taleb said, “Overengineering leads to fragility, simplicity to robustness.”
Therefore, I believe that in 2025, our industry will adopt the concept of “hidden tech details.” The best decentralized applications have already started to focus on more intuitive interface designs, making operations as simple as clicking a screen or swiping a card. In 2025, we will see more companies dedicated to clean design and clear communication; successful products do not require explanation, they directly solve problems.
-Brian Quintenz (X platform @brianquintenz | Farcaster platform @brianq)
Six Major Trends in Decentralized Governance in 2025
2025 is set to be an exciting year for decentralized governance. Decentralized autonomous organizations (DAOs) are continuously pushing the boundaries of innovation, exploring new models for collective governance among anonymous token holders. Investment management firms are also striving to convince clients to participate in online shareholder voting more frequently. Additionally, AI companies are starting to use citizen assemblies to set norms for large language models (LLMs). These efforts will lead to multiple experiments in decentralized governance, including:
Websites that facilitate voter proxy voting
AI-assisted delegation mechanisms
AI acting as agents
Smarter participation incentives
More efficient public goods funding
More experiments with random selection governance
-Translated by: [Translator’s Name]