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Crypto 2025 outlook from a16z

Crypto is evolving into a mature, globally impactful ecosystem

These trends set the stage for widespread adoption and innovation

1/ Stablecoins power global commerce

By 2025, stablecoins are poised to transform global payments

Businesses - small & large - are adopting them to cut transaction costs and bypass traditional payment systems

2/ Government bonds on blockchain

Nations may issue bonds on blockchain, offering secure, yield-generating digital assets

These bonds could bolster DeFi ecosystems, providing collateral while sidestepping CBDC concerns

3/ Legal frameworks for DAOs

DUNA (Decentralized Unincorporated Nonprofit Association) may emerge as a U.S. standard, granting DAOs legitimacy and streamlining decentralized governance

5/ Decentralized app stores rise

Crypto-based app stores, like World App (Worldcoin) and dApp Store (Solana), are challenging centralized platforms, expanding access for decentralized applications

6/ Active crypto adoption grows

Improved blockchain infrastructure and lower fees are turning passive crypto holders (617M globally) into active users of DeFi, NFTs, and DAOs

7/ Simplifying Web3 interfaces

“Hide the complexity” becomes the mantra

By 2025, user-friendly Web3 designs will lower barriers for mainstream adoption

8/ Innovations in decentralized governance

Expect AI-enabled delegation, smarter participation incentives, and enhanced funding for public goods, reshaping decentralized governance across industries

9/ Policy updates:

	•	Challenges: U.S. Treasury expands crypto broker definitions, potentially stifling DeFi innovation

	•	Relief: IRS delays FIFO tax reporting rules until late 2025, offering users more flexibility

4/ Reusing blockchain infrastructure

Developers are leveraging existing blockchain protocols and proofs to save time, focusing on product innovation instead of reinventing the wheel