Decentralized finance (DeFi) is expected to reach a critical turning point in 2025, as Bitcoin staking, real-world asset (RWA) tokenization, and autonomous artificial intelligence drive greater adoption, according to several industry leaders who spoke to Cointelegraph.
In 2024, Bitcoin surpassed the $100,000 mark for the first time as investors funneled over $100 billion into spot BTC exchange-traded funds (ETFs).
“Bitcoin achieving its all-time high will reignite interest in cryptocurrency from both institutions and regulators, which should revitalize the entire sector in 2025,” Dean Tribble, CEO of layer-1 network Agoric Systems, shared with Cointelegraph.
In December, the total value locked (TVL) in DeFi protocols exceeded $130 billion, approaching the ecosystem’s peak of approximately $175 billion in 2021, based on data from DefiLlama. Industry leaders anticipate that this upward trend will persist next year.
“By 2025, DeFi infrastructure and established protocols like Aave, Maple, and Maker will have been operating at scale for over four years,” Jacob Phillips, co-founder and head of strategy at Bitcoin staking protocol Lombard, explained to Cointelegraph.
“These platforms will emerge as dependable venues for institutions and new users to utilize Bitcoin effectively,” Phillips added.
The evolving Bitcoin ecosystem of layer-2 (L2) scaling networks and DeFi protocols is creating unmatched opportunities for investors to earn returns on Bitcoin.
“Currently, Bitcoin DeFi represents only 0.1% of its total asset value. This indicates a 300-fold opportunity for expanding DeFi on Bitcoin,” Alexei Zamyatin, co-founder and CEO of Build on Bitcoin, remarked to Cointelegraph, further noting:
“We have engaged with numerous significant Bitcoin DeFi users and funds eager to put their Bitcoin assets to earn returns.”
Layer-2 networks for Bitcoin, such as Babylon and CoreChain, incentivize stakers by allowing them to lock up BTC as collateral to secure their networks.
At present, liquid staking tokens (LSTs) that represent claims on staked BTC are on the rise. As of December 19, Bitcoin LSTs have a total value locked (TVL) exceeding $2.5 billion, according to stakingrewards.com.
In 2025, there could also be an increase in the popularity of Bitcoin staking ETFs, according to Matt Hougan, head of research at asset management firm Bitwise.
“There is significant demand for Bitcoin yield. While I’m uncertain if it will transition into an ETF structure in the United States, it certainly will in Europe,” Hougan mentioned.
Tokenized real-world assets (RWAs)—digital tokens that represent claims on everything from US Treasury bonds to works of art—constitute a global market opportunity worth $30 trillion, Colin Butler, Polygon’s global head of institutional capital, stated to Cointelegraph in August.
Currently, they represent about $14 billion in total value locked (TVL), as per RWA.xyz. Yield-generating tokenized US Treasury bills are particularly sought after, with a TVL exceeding $3 billion.
“Tokenizing real-world assets like real estate and carbon credits will provide exceptional liquidity, while advancements in payment methods will facilitate smoother cross-border transactions,” Raj Brahmbhatt, CEO of Web3 settlement platform Zeebu, commented to Cointelegraph.
Even the US Treasury Department has praised the potential of tokenization to enhance liquidity and minimize “operational and settlement frictions.”
“With [President-elect Donald] Trump winning the presidency, I am very optimistic about the US emerging as a global leader in this field by the end of the year,” Brahmbhatt expressed.
In 2024, tokens associated with autonomous AIs—machines capable of pursuing complex goals on their own—collectively amassed nearly $10 billion in market capitalization, according to CoinGecko.
Analysts anticipate that the integration of artificial intelligence and blockchain technology will revolutionize Web3, giving rise to a future where self-directed AIs create decentralized applications and engage in transactions with human users.
Agentic AI “is already fundamental to the industry’s future,” stated J.D. Seraphine, CEO of AI protocol Raiinmaker, in a conversation with Cointelegraph.
In 2025, “AI agents are expected to assume a more significant role within decentralized communities,” Seraphine noted.
The potential realm of AI agents is virtually limitless, according to Hougan, who added:
“It’s acceptable not to be entirely certain about what will transpire, as long as you recognize that something significant is in motion and that you want to have exposure to it.”
Some prominent trends in DeFi this year highlight the emergence of Layer 2 scaling solutions, the combination of blockchain with AI, and a growing embrace of DeFi by conventional financial institutions, as noted by experts in a report from The Block.
“In 2024, the prevailing trend in DeFi is the increasing collaboration with traditional finance (TradFi),” stated Alvin Kan, COO of Bitget Wallet. “Traditional financial institutions are utilizing DeFi tools like automated liquidity provision and smart contracts. We are also witnessing the tokenization of real-world assets, which is enhancing liquidity for DeFi platforms and broadening availability for investors.”
Kan noted that players in traditional finance are beginning to recognize the advantages of DeFi, including higher yields, transparency, and efficiency, which is reinforcing the sector’s role as a transformative influence.
Kean Gilbert, an institutional contributor at Lido Finance, also mentioned to The Block that the significant trend in DeFi this year is the institutional embrace of crypto. Specifically, Gilbert pointed out that the launch of spot bitcoin and ether exchange-traded funds has attracted traditional institutions to DeFi, extending DeFi’s reach to a broader market.
“At the same time, these developments have prompted critical discussions about whether these capital inflows genuinely support decentralization or pose a risk of power consolidation — especially as institutions weigh the balance between convenience and Ethereum’s fundamental values of resilience and neutrality,” added Gilbert.
The rollout of Layer 2 solutions to tackle scalability challenges within Ethereum was highlighted as yet another key DeFi trend for 2024, according to Brecht Devos, co-founder of Taiko Labs. “This trend indicates a clear necessity for networks that can function more rapidly, efficiently, and scale to accommodate expansive DeFi ecosystems and decentralized applications (dApps) without sacrificing a fundamental characteristic of DeFi — decentralization,” Devos remarked to The Block.
As Ethereum dealt with high transaction fees and congestion, Solana gained recognition. For the first time this year, Solana’s decentralized exchange (DEX) volume started to surpass that of Ethereum. By mid-November, Solana’s DEX volume was reported to be 217% higher than Ethereum’s, based on data from The Block’s dashboard.
Despite the rising numbers on Solana, some crypto community members have highlighted concerns regarding significant bot activity on the network, which could threaten its decentralization.
“While Solana has attracted increased interest due to its faster and less expensive transactions, it cannot compete with Ethereum’s level of decentralization and security,” said Devos. “These attributes position Ethereum as the bedrock for genuinely trustless applications.”
DeFi experienced additional momentum following the reelection of crypto supporter Donald Trump as President of the United States, accompanied by a more optimistic outlook across the broader crypto sector. As Trump is linked to a DeFi initiative managed by his family, the new U.S. administration is expected to support the DeFi sector by alleviating regulatory obstacles.
In November, DeFi revenue soared to $206 million, reflecting a 114% rise from the previous month’s earnings of $96 million.
A positive perspective for DeFi
Expectations for more relaxed regulations and clearer guidelines for the crypto sector are anticipated to bolster DeFi under the new U.S. administration, experts shared with The Block.
“[Trump’s] emphasis on reducing regulations and promoting economic growth might create ideal conditions for DeFi to flourish,” suggested John Paller, the founder of ETHDenver. “However, we require policies that safeguard innovation while allowing developers to explore without fear.”
A more direct impact on DeFi would be the new U.S. administration potentially providing clarity on the classification of crypto tokens as financial securities, according to Jawad Ashraf, CEO of the entertainment-focused Web3 firm Vanar.
“This will facilitate more fee switch implementations (which we are already observing with Uniswap and Aave)… and also establish a legal pathway for distributing protocol revenue to token holders in the form of dividends,” Ashraf continued, adding that this might ultimately introduce crypto yields to individuals in traditional finance.
Meanwhile, NEAR co-founder Illia Polosukhin forecasted a significant transformational shift for the entire Web3 landscape in 2025 driven by “intents.”
“This will not only widen the possibilities for users and app developers but also empower AI agents to act and transact across both Web2 and Web3,” Polosukhin stated. “This will change the way we engage with the internet.”
As 2024 approached its conclusion, a growing number of projects merging AI and crypto began to surface. AI agents like ai16z and Truth Terminal gained substantial attention on social media, leading to increases in related tokens. Earlier in December, the developer of the FRAX stablecoin, Frax Finance, announced its plans to build an AI technology framework to launch fully autonomous and sovereign tokenized AI agents.
Holders of SUI and Dogecoin are investing in a DeFi coin that is gaining popularity more rapidly than anticipated.
In recent months, SUI has made a name for itself as a strong DeFi coin. Yet, a new project has emerged that may challenge its status, presenting a promising DeFi coin with significant utility. This emerging altcoin is quickly gaining traction, as its presale funding has surpassed the $10 million mark.
Additionally, cryptocurrency analysts believe that this new DeFi coin’s substantial potential could soon surpass Dogecoin (DOGE).
SUI’s value increases as more individuals borrow funds for trading
SUI is currently performing well. This isn’t just in terms of its price fluctuations; the project has experienced a notable increase in usage. This is due to an increasing number of users borrowing money through SUI for their trades. Consequently, SUI’s total value locked (TVL) has reached $1.8 billion.
This surge also propelled SUI’s price beyond $4.70. In light of this, experts predict that SUI will continue to climb in the upcoming DeFi rally, projecting a price increase of two to three times within a few months.
Dogecoin moves out of the overbought region
Dogecoin experienced a significant boost following the US elections, with its price surging more than 120%. However, after some time, DOGE’s price fell. This decline was anticipated, as Dogecoin investors realized profits following the rally. A general market downturn also contributed to DOGE’s further price reduction.
Nevertheless, Dogecoin is now on the path to recovery. Current technical indicators suggest that it is no longer in the overbought zone, leading investors to feel more inclined to purchase DOGE once again.
Analysts believe this trend will lead to an increase in DOGE’s price, forecasting at least a 100% rise over the next year. They note that the price might not surge significantly due to the emphasis on DeFi coin projects, yet they still consider Dogecoin a solid investment for the next DeFi rally.
DTX Exchange: The frontrunner of the forthcoming DeFi rally
DTX Exchange is an upcoming trading platform set to launch soon, offering considerable potential for growth. However, its newness is not the sole factor driving DTX Exchange’s growth capabilities.
The platform will provide remarkable advantages for traders, including exceptionally fast transaction speeds. While Solana offers 600 TPS, DTX Exchange aims for an impressive 100,000 transactions per second (TPS), enabling users to secure profitable entries and exits while trading.
Moreover, this potential leader in the DeFi rally aims to simplify the trading process. Users will have the ability to trade cryptocurrencies and various other financial assets from a single platform. They will also benefit from managing all their assets from one comprehensive dashboard using DTX Exchange’s Phoenix Wallet.
Importantly, DTX Exchange allows traders to operate with up to 1,000x leverage, empowering them to turn small trades into significant profits. Additionally, users will enjoy zero commission fees, further enhancing their earning potential.
Another unique aspect of DTX Exchange is its equitable launch approach. Typically, many DeFi coins are launched with the support of large investors and venture capital firms, giving them control over price manipulation. This often places smaller investors at a disadvantage, but this is not the case with DTX Exchange.
This emerging DeFi rally leader is not contingent on the backing of venture capitalists or large investors. Furthermore, its incremental pricing model ensures that prices increase gradually, providing equal investment opportunities for all in DTX.
As a result, it’s no wonder that experts view DTX Exchange as the next leader of the DeFi rally.
Participating in the DTX presale
Currently, the public presale for DTX is in full swing, having raised over $10.2 million thus far. This indicates a significant level of interest from investors in this new DeFi coin. Additionally, over 300,000 wallet addresses have signed up for the presale, demonstrating a diversified base of DTX holders rather than a concentration of a few large investors.
Investors can purchase DTX tokens for $0.12 each during Stage 6 of the public presale. As the presale progresses, the price of DTX will increase. Once it reaches $0.20, DTX will officially launch on major exchanges, at which point experts predict a substantial rally, suggesting a price increase of at least 50 times.