Presto Annual Report: The market is becoming clearer, Bitcoin will reach $210,000 in 2025

Original title: From Chaos To Clarity: 2024 Crypto Market Review & 2025 Forecasts
Original source:Presto Research
Compiled by: Yuliya, PANews

In 2024, the cryptocurrency market will show obvious differentiation characteristics. Data shows that Meme coins led the gains, VC-backed tokens were generally under pressure, and RWA tokenization became the new focus of the market, with transaction scale increasing significantly. The market structure continues to evolve, the performance of high FDV low-circulation tokens is weak, and institutional demand for Bitcoin allocation is rising. These trends deserve continued attention in the new market cycle.

Looking forward to 2025, with improved infrastructure and regulatory clarity, the crypto asset market will enter a new stage. Bitcoin’s store-of-value function, competition in the public chain ecosystem, and innovative applications such as DEX and NFT may become new growth drivers for the market.

Against this background, Presto Research releases its first annual report, which comprehensively reviews key market trends and makes forward-looking forecasts for 2025.

Key predictions for 2025 include:

· Bitcoin price reaches $210,000

· Total cryptocurrency market value expands to $7.5 trillion

· ETH/BTC ratio rebounds to 0.05 as Ethereum fixes user experience issues

· Solana breaks through $1,000

· Stablecoin market value reaches US$300 billion

· DEX trading volume exceeds 20% of CEX trading volume

· The market value of the new EVM Layer1 public chain has reached US$20 billion, and the total lock-up volume (TVL) has reached US$10 billion.

· A sovereign country or S&P 500 company adds Bitcoin to its treasury reserves

· Crypto Hedge Funds Outperform Crypto VCs

….

2024 review

Best and Worst Performing Coin Analysis

In a well-functioning market, asset prices embody the wisdom of the crowd and form dynamic signals that reflect market narratives, themes and trends. Therefore, looking back at the best and worst performing projects in a booming market is a useful way to reflect on the past. A detailed analysis of this aspect will be carried out below.

Regarding the research methods, the following points need to be explained:

· First of all, the scope of analysis is limited to the three major centralized exchanges: Binance, Bybit and OKX.

· Secondly, the analysis objects are further divided into two categories: "newly listed projects (listed in 2024)" and "existing projects (listed in 2023 or earlier)".

· Third, select the five best and worst performing projects from each of the six subcategories.

It’s worth noting that this method of analysis may not fully reflect trends in mainstream assets such as Bitcoin or Ethereum, as small-cap assets tend to exhibit more extreme swings. Rather, this analysis aims to uncover industry themes or individual projects that may have been overlooked.

Based on the above description, the research findings point to three key trends:

· VC-backed tokens underperform

· Meme coin craze continues

· Tokenization of Real World Assets (RWA) attracts much attention

· The rise of decentralized exchanges (DEX)

Top 5 performance of newly listed projects in 2024 (as of November 29)

Top 5 performance of existing projects in 2024 (as of November 29)

" VC Coin" (low circulation/high FDV) performs poorly

Market data shows that underperforming projects generally have two characteristics:

1. High inflation rate

New projects: median 22%

Stock projects: median is 15%

2. Low circulation rate

New projects: median only 30%

Stock projects: median 78%

This trend becomes a unique phenomenon in the cryptocurrency market in 2024. While the negative impact of large-scale token unlocks has always been seen as a risk factor, this year it has become the dominant narrative, with exchanges, project parties, and investors all on high alert.

From a market development perspective, this change reflects that the crypto market is gradually maturing:

· It is difficult for new tokens to attract retail investors based solely on their glossy packaging or endorsement by well-known VCs.

· The strategy of using information gaps to use retail investors as an exit channel for CEX is gradually declining.

· The short-term arbitrage model used by some VCs is unsustainable

Meme coin craze

Retail investors generally believe that VC coins are unfair, so a large amount of funds began to shift to the Meme coin market. This trend has directly promoted the significant growth of the Meme coin sector, and the prominent position of Meme coins can be seen in the six outstanding performance lists.

There is a clear contrast between Meme coins and VC coins:

· Inflation rates are generally low

· Overall circulation rate is high

The "fairness" narrative of meme coins has a major impact on the crypto market in 2024:

· Successfully attracted a large number of retail investors to participate

· Drive a shift in market sentiment

· Becoming one of the most significant features of the annual crypto market

RWA project goes beyond Meme coins

The most eye-catching project in 2024 is undoubtedly Mantra (OM), whose growth rate far exceeds that of other projects:

· OM: up 6,118%

· PEPE (Best Meme Coin): Up 1,231%

Mantra positions itself as a "purpose-built RWA public chain" that can "meet real-world regulatory requirements" by supporting compliant up and down chain protocols for fiat currencies, stocks and tokenized RWA. OM, as the governance token of MANTRA DAO, provides users with reward programs related to key initiatives and ecosystem development.

OM’s outperformance reflects two key trends:

· RWA track is gaining market favor

· The appeal of the RWA concept may extend beyond Meme narratives

Early gains turn to DEX

Data shows that the return rate of existing tokens is higher than that of newly listed token projects, which is in contrast to traditional perceptions. Behind this phenomenon reflects important changes in the crypto market in 2024: DEX has become the main place for early price discovery of tokens.

Thanks to the improvements in DEX functionality and user experience, many projects choose to be listed on DEX first. As a result, the steepest rises tend to occur on DEXs, and centralized exchanges can only capture the later stages of the rise. In the early days of the crypto market, centralized exchanges were the undisputed liquidity provider. However, with the rise of DEXs such as Hyperliquid and Raydium, and the emergence of applications such as Moonshot and Pump.fun, the market landscape has changed.

2025 Forecast

The institutionalization process is advancing at full speed

The mainstreaming process of cryptocurrency is ongoing and is expected to reach new heights in 2025, and the full participation of top institutions will further accelerate this trend. Here are four major development forecasts.

Bitcoin price will hit $210,000 by 2025

The MVRV ratio (Market Cap/Realized Value) has become one of the most reliable Bitcoin valuation tools recognized in the digital asset industry. Market capitalization (MV) calculates the total value of all Bitcoins in circulation based on the current market price, while Realized Value (RV) calculates the value of each Bitcoin based on the latest transaction price based on on-chain transaction records, representing the value of all Bitcoins in circulation. Average acquisition cost.

Historically, Bitcoin's MVRV ratio has fluctuated between 0.4x and 7.7x. If only considering data since 2017 (excluding early periods of extreme volatility), the range is narrower, between 0.5x and 4.7x. In the past two bull markets (2017 and 2021), Bitcoin's MVRV peaked at 4.7x and 4x respectively.

Using a more conservative 3.5x multiple, and assuming realized value grows at a CAGR of 5.3% per month from $722 billion currently to $1.2 trillion in Q3 2025 (this growth rate reflects the spot ETF bandwagon (The impact of institutional access facilitation in the future), the target value of the Bitcoin network in 2025 is US$4.2 trillion (currently US$1.9 trillion), or US$210,000 per Bitcoin.

Bitcoin “Enclosure Movement”: New Sovereign Nations or S &P 500 Companies Will Adopt Bitcoin as Reserves

It is expected that a sovereign country or S&P 500 company will announce the inclusion of Bitcoin in its reserve strategy. For sovereign countries, "adoption" refers to government departments proposing to include Bitcoin in national treasury reserves. At least one country has taken similar action in each of the past three years. Trump’s campaign promise of Bitcoin reserves after being elected president may prompt other countries to study similar strategies based on game theory considerations.

In terms of enterprise adoption, MicroStrategy's parabolic stock price rise this year has captured the attention of the corporate world like never before. This accounting hurdle will be eased with the FASB's announcement earlier this year that it will switch from lower-of-cost-to-market accounting to fair value accounting. MicroStrategy plans to implement this change by the first quarter of 2025, providing other companies with clearer guidance and stronger incentives to adopt.

Stablecoin market value will reach $300 billion

While stablecoins may not be at the forefront of the minds of high-yielding cryptocurrency speculators, they are undoubtedly the most successful application of blockchain. After rebounding from local lows in November 2022, the total stablecoin market capitalization has now reached $200 billion, making it the largest cryptocurrency application category.

It’s no accident that 99% of stablecoins are pegged to the US dollar. Tokenizing an asset does not create demand out of thin air, rather the asset that needs to be tokenized itself has global demand. Few currencies other than the U.S. dollar enjoy such widespread demand, as evidenced by its dominance as a settlement currency. This is why blockchain and USD stablecoins achieve optimal product market fit.

Stablecoin market capitalization is expected to reach $300 billion in 2025, with this growth driven by long-term and cyclical factors. Long-term drivers include recognition of the superior capabilities of a tokenized dollar and progress on stablecoin legislation in the U.S. Congress. Cyclical drivers include the broader cryptocurrency bull cycle. Even if it reaches US$300 billion, this will only account for 1.4% of the US dollar M2 supply, and there is still huge room for growth.

More corporate action: Circle/Ripple/Kraken set to IPO

Under the crypto-friendly environment of the Trump administration, opportunities previously shelved due to political risks may be unleashed. Traditional companies will view crypto startups as attractive assets to enter the crypto space, driving more M&A activity and higher valuations. There are already signs of this trend, with even struggling Bakkt finding a buyer in Trump Media.

Companies in later stages of growth will not miss this opportunity to go public. Well-known crypto companies such as Circle, Ripple and Kraken have long been considered potential IPO candidates. For reference, Coinbase went public during the peak of the last bull market (April 2021).

The equitization trend of cryptocurrencies

United States: The New Cryptocurrency Capital

Trump’s “Make America Great Again” (MAGA) and “America First” policy concepts are likely to extend to the cryptocurrency space. To ensure that the United States stays ahead of competitors such as China in the global cryptocurrency map, the government may adopt a series of supportive policies. There have been rumors of plans to eliminate capital gains taxes on cryptocurrencies issued by U.S.-registered companies, signaling the government’s intention to attract crypto innovation. This may just be the beginning of a series of policies.

This shift will fundamentally change the crypto industry. Currently, cryptocurrencies are viewed as global assets, and the location of the project or founders is not taken seriously. But as the United States achieves differentiation through preferential policies, this perception will change. Just as the nationality of a company matters in traditional stock markets, so will it in the cryptocurrency space.

· "American Cryptocurrency" will command a significant premium, attracting top talent and projects.

· The United States will replicate its successful model in the stock market, with U.S.-listed companies enjoying valuation premiums due to the country's legal and economic stability.

· The knock-on effects of U.S. dominance will extend to trading dynamics.

· Volume and volatility are likely to increase significantly during the U.S. trading session as macro and project-level news events will be concentrated during the U.S. session.

· Additionally, U.S. exchanges (especially Coinbase) are expected to grow significantly, and listings on their platforms will serve as a signal of global legitimacy, similar to major Nasdaq IPOs.

· At the project level, Coinbase’s Base ecosystem will be one of the biggest beneficiaries of U.S. dominance.

Cryptocurrency Turns to Fundamentals: Liquidity Hedge Funds Will Outperform

The crypto industry is moving away from speculative hype and toward fundamentals-driven investing, fueled by the rise of standardized valuation frameworks. These frameworks are reshaping how projects are evaluated, financed, and traded, making crypto investing more disciplined and closer to traditional financial principles.

As projects generate revenue through staking rewards, token buybacks, and transaction fees, they become systematically evaluable. Investors can now calculate actual returns for token holders and assess project sustainability. Metrics such as TVL/market cap ratios and protocol revenue multiples are gaining acceptance.

In 2025, liquid hedge funds are expected to outperform venture capital funds, using their valuation-based strategies to profit in both bull and bear markets. At least five major macro or equity long-short hedge funds are likely to enter the space, while major investment banks are expected to formally cover digital assets.

The Rise of Crypto Indexes: Index trading volume will join the top five

As cryptocurrencies become a mainstream asset class and ordinary investors begin to realize the importance of including them in their portfolios, there is a growing demand for simplified and diversified investment approaches. This shift mirrors the trajectory of traditional stock markets. Just as investors shifted from picking individual stocks to buying the S&P 500, the crypto market is undergoing a similar evolution.

In traditional finance, ETFs currently account for 13% of total U.S. stock assets. Cryptocurrencies are expected to follow a similar trajectory, with index products offering a mix of assets across sectors or themes.

Currently, projects are developing unique use cases and behavioral models, and the performance of different industries is driven by unique fundamentals and no longer just follows the price trend of Bitcoin. Indexes are expected to become a staple on major exchanges, with crypto equivalents similar to the $SPDR product (such as the Coinbase 50 Index) likely to emerge and remain in the top five in trading volume rankings.

The second stage of the bull market

Solana will hit $1000

Solana’s path to $1,000 is built on its transformation from a high-performance blockchain to a deeply institutional ecosystem. The surge in institutional adoption, coupled with $173 million in project funding raised in Q3 2024, reflects that the platform has achieved the critical intersection of technical excellence and institutional embeddedness.

Network activity has shown unprecedented growth, with Solana accounting for more than 50% of all on-chain daily transaction volume, and activity increasing by 1,900% year-on-year. This explosive growth reflects a deeper truth about the web's success - as Placeholder's Mario Laul explores, the web's success depends not just on technology, but also on the degree of institutionalization achieved through specialized infrastructure and developer network effects. Solana’s differentiation stems from its unique cultural philosophy: prioritizing rapid innovation over theoretical perfection, which stands in stark contrast to Ethereum’s research-first approach.

From the technical roadmap, Anatoly promotes the vision of a global state machine with a block time of 120 milliseconds, and the network architecture is naturally suitable for expansion based on rollup, which lays the foundation for unprecedented scalability. The upcoming Firedancer client, which aims to achieve 1 million transactions per second, further demonstrates this pragmatic progress.

1.93% of the tokens will enter the market next year, with a projected market cap of $485.93 billion at $1,000 – which is within Ethereum’s historical precedent. This combination of cultural differentiation, institutional adoption, technological evolution, and favorable token economics creates a compelling case for SOL’s rise.

Total cryptocurrency market cap will reach $7.5 trillion

The crypto market in 2024 continues its dominance by Bitcoin. Institutional funds continue to flow in through ETFs, Bitcoin's institutionalization process continues to deepen, and the benefits brought by Trump's victory have allowed the cryptocurrency veteran to continue to outperform most altcoins.

If Bitcoin reaches US$150,000 and maintains 60% of the market value, the overall encryption market size will reach US$7.49 trillion, more than 2.5 times the previous high (November 2021, US$2.9 trillion).

The Trump presidency will be a key factor in the duration of this bull market. There are two possible development paths for the market:

· Under the optimistic path, Trump will implement policies to promote economic growth, relax regulations, maintain low tariffs and open immigration policies. This scenario may bring about rising real interest rates, a stronger dollar, and rising stock markets, but gold prices will be under pressure.

· Under the pessimistic path, a trade war may break out, 60% tariffs will be imposed on China, and 10-20% tariffs are generally imposed globally, and immigration policies will be tightened. This will lead to the Federal Reserve easing policy and lowering interest rates, the U.S. dollar to first strengthen and then weaken, the stock market to adjust, and gold to strengthen.

In either case, there are positive factors for cryptocurrencies:

· In an optimistic environment, Bitcoin may rise in tandem with risk assets;

· In a pessimistic environment, Bitcoin may be positively correlated with gold and negatively correlated with the US dollar.

Taking into account Trump's cabinet selection and overall policy orientation, the market environment is more likely to be biased towards an optimistic path, which will provide favorable support for risk-appetite crypto assets.

NFT rebound in 2025: monthly trading volume will reach $2 billion

Bitcoin is currently at an all-time high, but market sentiment seems different than before. The magic moment of "a rising tide lifts all boats" in the bull market cycle has yet to come, which is why we are optimistic about NFTs in 2025. The current market is entering a mature stage, and historical experience shows that this is often the most culturally innovative stage.

Current data supports the potential for this cultural renaissance, with NFT sales reaching $562 million in November 2024, a 57.8% month-on-month increase. The continued growth of the NFT subculture and impact on broader crypto culture, and the emergence of unique art movements ranging from junk art to generative art, reflect an increasingly mature ecosystem.

The adoption of NFTs by mainstream brands such as Nike and Sony is not only about corporate adoption, but also the legitimization of these digital sub-cultures. NFT monthly trading volume is expected to exceed $2 billion sometime in 2025 (the monthly average in 2021 was $2.056 billion).

Focus on fundamentals

Ethereum rebounds: ETH/BTC ratio set to return to 0.05

In the second half of 2024, Ethereum became one of the most controversial topics in the crypto industry. While single chains such as Solana have achieved significant development due to their "convenience and speed", Ethereum still faces many challenges:

· L2 network lacks a complete certification system

· User experience problems caused by asset fragmentation

· Lack of narrative cohesion

These factors have caused the ETH/BTC ratio to reach new lows since 2021.

Despite the challenges, Ethereum is worth watching closely in 2025 and beyond. It is expected that the ETH/BTC ratio may return to 0.05 when Bitcoin reaches $120,000 and Ethereum climbs to $6,000. Two important upgrades deserve attention:

1. L2 network de-fragmentation (ERC-7683 and EIP-7702)

In the past few years, although Ethereum's L2 solution has solved the expansion problem, it has also brought about ecological fragmentation. Each L2 network has formed an independent ecosystem, and cross-chain operations have become complicated. The new upgrade will go through:

· ERC-7683 standardized intents (Intents): allows users to declare desired operations without caring about specific L2 network details

· EIP-7702 Account Abstraction: Allow external accounts (EOAs) to be temporarily used as smart contract wallets

· Achieve seamless cross-chain operations: users can complete operations such as cross-chain token exchange, asset transfer, and governance voting at one time

2. Beam Chain roadmap optimization

The Beam Chain roadmap announced by Justin Drake of the Ethereum Foundation at Devcon 7 proposes a long-term plan to 2029, involving 9 major upgrades in the three categories of block production, staking and cryptography:

· Reduce final confirmation time from 15 minutes to 36 seconds (3-slot finality)

· Reduce block time from 12 seconds to 4 seconds

· Lowered minimum staking requirement from 32 ETH to 1 ETH

Based on currently available information, L2 de-fragmentation related updates are expected to be launched in early 2025, while the Beam Chain roadmap has not determined a specific timetable. In particular, the core proposals of the Beam Chain roadmap involve the idea of ​​fundamentally changing the key mechanisms of the Ethereum consensus layer, and these updates may take more than 1-2 years to complete.

Pay attention to DAG-based blockchains (SUI, APTOS, HBAR, FTM)

The traditional blockchain is like a one-way street, and all transactions need to be queued and passed through in sequence. The DAG (directed acyclic graph) technology is like a complex road network, allowing multiple lanes to pass at the same time. This design makes a qualitative leap in transaction processing efficiency, which can be called an important evolution of blockchain technology.

Although the early DAG project IOTA pioneered the introduction of this technology into the encryption world, like the first generation iPhone, it had many inherent limitations. When the network transaction volume is insufficient, the performance decreases, and a centralized coordinator is required to "stand guard." These problems ultimately limit its development.

The emergence of Sui has injected new vitality into DAG technology. It does not completely abandon the advantages of traditional blockchain, but cleverly integrates DAG into the consensus mechanism. Through the innovative Mysticeti consensus protocol, validators are free to process blocks in parallel, which not only ensures decentralization and security, but also greatly improves network performance. It's like Tesla's perfect combination of electric motors and traditional car craftsmanship.

Sui's technological innovations quickly gained market recognition. Since September 2024, the price of Sui currency has soared by more than 300%, and currently ranks third among non-EVM public chains with a TVL of US$1.6 billion. Even after experiencing large-scale unlocking in late 2024, Sui still showed strong resilience. Looking forward to 2025, Sui's development prospects are brighter as the pressure to unlock is significantly reduced.

Not only Sui, but the entire DAG track is booming. Aptos, which also uses DAG technology, has jumped to the fourth place in the non-EVM public chain TVL, with a locked position of US$1.13 billion. DAG projects such as IOTA, HBAR, and FTM have also achieved increases of at least 100% since September 2024.

As the technology continues to mature, the DAG project is using its strength to prove that it is the most suitable public chain solution for large-scale applications. It is expected that the total TVL of major DAG projects is expected to grow from the current US$3.1 billion to US$5-6 billion by 2025, equivalent to more than half of Solana's current TVL.

Golden age on the chain

The gold rush of DEX: the trading volume ratio of spot DEX to CEX will exceed 20%, and the ratio of perpetual contract DEX to CEX will exceed 10%

Although CEXs such as Binance and Coinbase are still the main trading platforms for most investors, as the bull market progresses, the trading volume ratio of DEXs to CEXs has gradually increased. This trend is expected to accelerate next year, with the spot trading volume ratio likely to exceed 20% and the perpetual contract trading volume ratio likely to exceed 10%.

Three factors are driving this shift:

· First, under the new Trump administration, a more DeFi-friendly regulatory environment will expand the DeFi scene, encouraging exploration with less scrutiny and token value accumulation. This will increase the demand for DeFi tokens and create a virtuous cycle for the entire on-chain ecosystem.

· Secondly, the user experience at multiple levels including wallets, trading terminals and trading robots has been significantly improved. After the FTX crash, on-chain activity became more popular as traders became more sensitive to counterparty risk. Phantom has repeatedly ranked among the top applications this year, indicating that on-chain user experience and popularity have reached unprecedented levels.

· Third, the listing of highly valued tokens on CEX will drive more investors to move to the chain. As the crypto industry reaches trillion-dollar levels, it is increasingly common for new tokens to be issued at valuations in the hundreds of millions or billions of dollars. Investors are increasingly aware that the days of holding tokens on CEX to obtain excess returns are over, and the most profitable opportunities are on-chain.

Although there are still certain thresholds for on-chain operations and self-hosting, the bullish FOMO sentiment will surely push more users to embrace the on-chain economy. This wave of "gold rush" will not only bring about an increase in the number of users, but will also promote the entire blockchain industry to move towards an open, trustless economic system.

Digital gold is better than gold: Bitcoin ecosystem value will exceed 1% of BTC network

After many cycles, Bitcoin has become increasingly accepted by the public as digital gold and a store of value. Since 2023, numerous protocols have emerged to unleash Bitcoin’s full potential as digital gold. Native Bitcoin protocols like Ordinals and Runes make Bitcoin the base layer for native DeFi by minting tokens and NFTs directly on its blockchain. Additionally, various L2 solutions and restaking protocols are beginning to leverage Bitcoin to generate revenue.

Since the launch of the Ordinals protocol in 2023, transaction fees on the Bitcoin network have climbed to the highs of previous bull markets. However, on the eve of the upcoming new bull market, transaction fees have returned to normal, indicating that Bitcoin’s on-chain demand has not yet been fully released. According to market rules, if there is a bull market in 2025 as expected, Bitcoin’s on-chain usage and transaction fees are likely to hit record highs.

While most Bitcoin holders value stability, there will always be demand for Bitcoin to generate income. Current data illustrates this point:

· Bitcoin ranks sixth among all public chains in terms of total value locked (TVL), with approximately US$3.8 billion of Bitcoin used for revenue generation.

· Including the total market capitalization of Ordinals and Runes, the market size of the entire Bitcoin on-chain ecosystem has reached US$7 billion

Considering Bitcoin's status as a $2 trillion asset, 1% of its supply would represent over $20 billion invested in the ecosystem.

The EVM era is back: the new alternative EVM L1 will reach a market value of more than US$20 billion and a TVL of more than US$10 billion

In 2024, on-chain growth will be mainly concentrated in non-EVM ecosystems, especially Solana and Sui:

· Solana’s on-chain transaction volume exceeds that of Ethereum and all its L2 networks combined

· Sui’s momentum surpasses most Ethereum L2 solutions

· The market share of the EVM ecosystem excluding Ethereum mainnet in terms of TVL (Total Value Locked) has declined significantly

This trend is expected to reverse in 2025:

· The new alternative EVM L1 public chain is expected to reach a market value of US$20 billion

· TVL is expected to reach US$10 billion

· This goal has been achieved by Avalanche in 2021

Despite the significant growth of networks like Solana and Sui, the EVM ecosystem remains unparalleled in depth. It has the largest user and developer base, unparalleled liquidity, and a TVL of $165 billion, four times that of the rest of the ecosystem combined. This huge liquidity, mainly in ETH, has been on the sidelines during the 2024 Solana Meme coin mania. However, growing interest in EVM-based protocols such as Hyperliquid, Ethena, and Virtuals indicates that latent demand exists .

This prediction is not bearish on Solana or Sui, but bullish on the development prospects of the EVM network. EVM networking offers the following advantages:

Technical advantages

· More convenient cross-chain bridging

· Easier DApp deployment

· Better wallet compatibility

User base

· Solana (especially the Phantom wallet) has a great track record of attracting new users

· Jupiter has more than 500,000 daily active traders

· Even if only 10% of users switch to on-chain DeFi, it will significantly increase ecosystem vitality and liquidity

Growth is expected to focus primarily on EVM-compatible L1 networks rather than L2 networks:

· Challenges faced by L2 networks: Most L2 networks have difficulty gaining effective traction, and user adoption rates are lower than expected.

· Advantages of the L1 network: attracting users and liquidity through the wealth effect of native tokens, as proven by the successful cases of BSC, Avalanche, Fantom, etc. in 2021

Potential alternative EVM L1s in this cycle include: Hyperliquid, Monad and Berachain.

Conclusion

The crypto world is like the vast starry sky, complex and complex. Even the most comprehensive research reports fail to paint a complete picture of this booming new continent. This research focuses on the tracks with the most realistic application potential, trying to reveal how encryption technology can break through the shackles of speculative bubbles and truly serve the real world.

However, innovation in the crypto space never stops. Although experimental fields such as blockchain games (GameFi), decentralized physical infrastructure network (DePIN), and decentralized social networking (DeSoc) are not yet mature, they contain unlimited possibilities for breakthrough innovation. These emerging tracks may not yet have found a clear path to mainstream adoption, but their revolutionary potential cannot be ignored.

Looking ahead to 2025, the crypto industry will continue to evolve amid a clearer regulatory environment. New ideas will continue to emerge and new trends will continue to evolve. In this noisy market, it’s crucial to stay humble and open-minded, while also remaining agile and focused. Only by going through the fog and finding true knowledge can we seize the opportunity in this digital revolution.