The 2025 Market Opportunities and Potential Hotspots in the Eyes of Encryption VC

With the arrival of 2025, the encryption industry is迎来新的发展契机. Over the past year, the market has experienced recovery and innovation, with leading projects solidifying their positions and emerging sectors gearing up. As industry barometers, top VCs have not only witnessed market changes but are also shaping the future of the industry.

This article gathers insights from multiple VCs, who review the highlight projects of 2024, analyze the current market situation, and make predictions about future trends. Let us delve into the perspective of VCs and explore the development context of the encryption industry.

The Most Representative Projects of 2024

In the past year, several projects have stood out due to their unique advantages:

Hyperliquid has become the market focus with its outstanding perpetual contract DEX performance and successful token issuance. The platform is expanding into the HyperEVM ecosystem, continuously eroding the market share of both DEX and CEX.

Pump.fun, as a Meme coin launch platform, has ignited a market craze, showcasing the strong appeal of high-quality products.

Mature lending protocols like AAVE, Compound, etc. continue to make strides, while emerging platforms like Morpho, Euler, and Ajna are also coming to the forefront, jointly promoting the robust development of DeFi.

Pudgy Penguin, with its innovative thinking, has driven the revival of the NFT track, showcasing the potential of a new generation of entrepreneurs.

Ethena has performed remarkably in the DeFi space with the USDE stablecoin, ensuring long-term sustainability through innovative mechanisms.

Bitcoin Market Outlook

Multiple VCs are optimistic about Bitcoin's performance in 2025:

• Expected to break through the $200,000 high point
• Prices below 50,000 USD may become history
• Technical indicators suggest the top may be around $200,000
• Conservatively estimated to reach between $120,000 and $150,000, then fluctuating in the range of $100,000 to $150,000.
• In the long term, there is a possibility that the price of Bitcoin will reach $600,000, but it will take 5-10 years.

Unlike previous years, the external liquidity brought by ETFs and the potential Bitcoin reserve policy may drive Bitcoin to maintain a fluctuating upward trend without significant pullbacks.

The Battle Between Meme and "VC Coin"

The competition between Meme and VC coins is essentially a battle for market liquidity and available funds. In an environment with limited capital, VC coins struggle to continuously attract retail investors due to their characteristics. On the other hand, Meme coins have become a new choice for retail investors because of their full circulation and fair distribution mechanism.

However, the nature of Meme coins is unsustainable. Except for a few top projects, most are difficult to maintain value in the long term. As for the VC coin dilemma, there is no good solution in the short term; it needs to go through a complete bull and bear cycle to rebuild trust.

The project team needs to seriously consider the landing scenarios, cash flow, and community activity. VC coin projects should better think about the positioning of the tokens, allowing more community participation and strengthening the binding of interests.

Future Potential Tracks and Projects

Multiple tracks and projects are promising:

• RWA(Real World Asset)is expected to achieve breakthrough growth
• Re-staking may reach its peak in 2025
• The potential of ZK projects is immense
• AI Agent has great potential in trading, DeFi, and other fields.
• The PayFi track has attracted much attention and is expected to drive the integration of encryption currency into daily life.
• The integration of AI and blockchain will become an important development direction.

Mass Adoption Prospects

The payment track is considered the most promising for large-scale adoption. Stablecoins show advantages that surpass traditional finance in non-US dollar countries.

The new front-end user experience and embedded DeFi will drive adoption. The Solana ecosystem has more advantages at the retail level.

Overall, the encryption industry is gradually moving towards a more mature and professional direction, and is expected to usher in a true era of large-scale applications.

Bull Market Cycle Judgment

We may currently be in the mid-phase of a bull market. After the Bitcoin ETF is approved, market volatility may decrease, shifting from rapid bear and bull markets to a long-term slow bull.

The accumulation by institutions and a friendly policy environment reduce the likelihood of a market crash like that in 2022 in the future. In the short term, Bitcoin may have already completed half of its bull market process.

Retail Investor Recommendations

1. Focus on high certainty tracks, such as BTC, Meme coins, and AI narratives.
2. Follow the trend and seize market cycles.
3. Manage risks well to avoid excessive leverage.
4. Prioritize blue-chip assets and focus on projects with strong long-term performance.
5. Emphasize security, use reliable tools such as hardware wallets.
6. Maintain a sense of awe and prioritize risk control.

Overall, the crypto market in 2025 presents both opportunities and challenges. Investors need to seize opportunities while remaining vigilant and prepared for risk prevention.