Deconstructing Crypto Assets Narrative: Outlook for 2025

With the continuous development of the Crypto Assets market, various narratives and predictions are emerging one after another. This article aims to sort out the important narratives that may appear in the Crypto Assets field by 2025 and analyze their authenticity.

The Obvious Truth Narrative

The integration of AI and encryption will continue.

The dominant position of artificial intelligence in the Crypto Assets community may continue until 2025. We have already seen some AI agents posting content on social media or trading on trading platforms. Although current AI agents are relatively simple, this trend will drive innovation, just as DeFi continued to develop after the bubble burst.

Spot ETF is beneficial for the market

The launch of Bitcoin and Ethereum spot ETFs will provide traditional financial institutions with a Crypto Assets investment channel, potentially bringing in more capital inflows.

Stablecoins are the killer application of Crypto Assets.

Stablecoins as a major application scenario of crypto assets will further expand, not only limited to crypto asset trading but also potentially extending into the fintech sector.

Many projects perform better before the token generation event.

Most protocols tend to have better overall metrics before issuing tokens. This reminds us that Crypto Assets is a niche industry, and we cannot expect all investments to yield huge returns.

Obvious Lies Narrative

Airdrop is dead

Despite the issues caused by low circulation and high fully diluted valuations of token issuances, airdrops remain an effective method of token distribution. It is expected that airdrops in 2025 will be more rational after returning to reality.

Crypto Assets projects must rely on venture capital support.

With the rise of public and private fundraising platforms, projects can now raise funds from a diversified group of crypto assets native investors. The moat for venture capital is narrowing.

Memecoin, AI agents and other super cycles

Be cautious when you hear the term "super cycle." Popular narratives will eventually lose their appeal, and people's attention will shift to new narratives.

Retail investors love Memecoin

Retail investors are becoming more sophisticated; they may purchase tokens from various channels, not just limited to the crypto community.

DAO is decentralized, efficient, intelligent, and transparent.

In fact, many DAOs still face issues such as centralization, inefficiency, and lack of transparency. The current DAO model needs improvement.

The Unobvious Truth Narrative

Bitcoin is a tool for hedging against macroeconomic uncertainty.

Bitcoin is neither purely a risk asset nor entirely equivalent to digital gold. It is a unique diversified asset that may serve as a safe haven during certain periods of geopolitical turmoil.

The utility of the token is not essential.

With the rise of memecoins and analysis platform tokens, token issuance no longer requires strong proof of utility. Attention, community, and user base may be more important than utility.

DeFi is more centralized than CeFi

From the perspective of market share and risk concentration, the business and total locked value ( TVL ) in DeFi may have a higher concentration than in CeFi. This centralization may pose potential risks.

Tether(USDT) dominance is about to end

As new participants enter the stablecoin market, especially in the savings products and payment sectors, the dominance of USDT may face challenges. Regulatory pressure may also impact Tether's position in certain markets.

Unobvious Lies Narrative

The fee switch is favorable for the token price.

Although profit sharing may set a lower limit for the token price, it does not guarantee a significant increase in the token price. The token price is still influenced by various factors.

The bull market will last for a year, ending in the fourth quarter.

Market cycles are difficult to predict accurately. Various factors may disrupt or extend the bull market cycle.

The fragmentation of Ethereum L2 user experience will continue to exist.

With the advancement of technology and the emergence of innovative solutions, the user experience issues of Ethereum L2 may be improved. The development of the "Fat Wallet" theory and AI agents could help address this problem.

NFT is dead

Despite the downturn in the NFT market, new application scenarios and innovations may bring new vitality to NFTs. NFTs may transcend the realm of avatars and cultural icons, playing a new role in the AI era.

Conclusion

In the Crypto Assets market, it is crucial to identify the less obvious truths and false narratives. This not only helps investors make more informed decisions but also assists founders in building truly innovative and enduring value projects. While focusing on hot topics, we must also maintain independent thinking and deeply explore potential disruptive opportunities.