The re-election of Donald Trump has marked a pivotal moment in global politics and appears to be a turning of the tide for the digital asset industry. Bitcoin, once a niche asset, began its march toward mainstream acceptance following its launch during the Great Financial Crisis, fueled by optimism around innovation and a desire for a modern non-sovereign store of value. This past year, the launch of Bitcoin and Ethereum ETFs by some of the most trusted financial houses propelled digital asset access into the mainstream, already pulling in nearly $50B in capital. Now, the new U.S. administration is ushering in hope for a more constructive regulatory environment with apparent sweeping changes across many levels of government. This edition of Aquanow’s Digital Dives explores the resurgence of Bitcoin, the role of institutional adoption, and the rise of transformative blockchain use-cases as 2024 comes to a close.
Institutional Adoption and Regulatory Shifts
Bitcoin has solidified its place as the flagship asset of the cryptocurrency ecosystem, experiencing a remarkable recovery in 2024 to trade above $100,000 USD. This resurgence is the result of several factors. First, Donald Trump’s reelection earlier this year injected optimism into markets, fueled by expectations of more crypto-friendly policies under his administration. Second, renewed institutional interest provided a powerful new source of demand. Major financial firms and investment managers have embraced BTC as a legitimate asset class, with ETFs and other regulated products driving accessibility. Bitcoin’s market cap nearing $2 trillion highlights its role as a cornerstone of decentralized technology and its potential as a diversifying portfolio holding, protecting against currency debasement, economic uncertainty, and geopolitical risk.
The election was the catalyst that broke crypto prices out of an eight-month period of consolidation and volatility. While lofty expectations make room for disappointment, the market also recognizes that even a neutral regulatory environment is an improvement over the U.S. position in recent years. A friendlier relationship with policymakers removes many negative outcomes for risk managers going forward. That certainly makes crypto majors more attractive for allocators who may not have had exposure for those reasons.
Nasdaq Crypto Index
The crypto ecosystem’s maturation has been closely tied to the growing involvement of institutional players. The approval of spot Bitcoin ETFs in the United States catalyzed an influx of capital, with global crypto exchange-traded products (ETPs) now exceeding $150 billion in assets under management. Firms like Fidelity and BlackRock have not only legitimized Bitcoin but also expanded the conversation around digital assets within traditional finance circles. They’re just getting started educating their legions of investment professionals about the benefits of digital assets’ inclusion in portfolios.
Regulatory clarity has played a pivotal role in this transformation. A turnover of staff at the SEC, to be effective early next year, is a profound turning point, signaling a shift toward more constructive engagement with the crypto industry. Clearer guidelines in key markets like the U.S., Europe, and Hong Kong have reduced uncertainty, creating a more stable foundation for large-scale investments. Importantly, we could see competition among nations trying to lure builders and capital allocators through policy.
Internationally, the adoption of stablecoins by financial infrastructure providers, banks, and established Web2 companies highlights the growing integration of blockchain technology into the global financial system. Stripe’s acquisition of Bridge and successful relaunch of crypto payments, Apple Pay as a fiat-to-crypto onramp, SWIFT’s pilots with Chainlink, Van Eck and State Street’s AUSD and other similar initiatives exemplify how traditional institutions are leveraging blockchains to grow through a balance of efficiency, compliance, and innovation. Stablecoins also provide a vital mechanism for on-chain transactions, facilitating cross-border payments and seamless financial interactions across decentralized applications (dApps) and ecosystems.
Emerging Narratives
As the blockchain ecosystem continues to evolve, several new narratives are capturing the imagination of investors and developers alike. We believe the following are worth keeping an eye on in 2025:
- Applications Are Here: Crypto has increasingly proven its ability to onboard new users. The success of platforms like Polymarket, Telegram mini-apps, and Hyperliquid reflects growing real-world use cases. A leading venture capital firm, a16z estimates that roughly 30-60 million of the 200M active crypto addresses represent genuine monthly users—a solid foundation for future growth.
Top Blockchain Project Monthly Active Users (in millions)
Source: Token Terminal
- New Ecosystems: Solana has firmly established itself as a major player, transforming what was once a two-horse race between Bitcoin and Ethereum into a trifecta. Its speed, low fees, and thriving community have propelled it into the spotlight. Meanwhile, Ethereum faces an identity crossroads, grappling with scaling challenges and evolving consensus around its long-term roadmap. Adding to the landscape, emerging ecosystems like Berachain and Monad are set to launch, promising innovative applications and user interfaces that could redefine blockchain’s potential.
- Real-World Assets (RWAs): The tokenization of assets like real estate, bonds, and intellectual property is rapidly gaining traction. Firms like BlackRock and Franklin Templeton are leading the charge, while others have issued billions in tokenized mortgages to improve liquidity and efficiency. Stablecoins serve as the backbone for these ecosystems, enabling instant settlements and broader credit access to traditionally illiquid markets.
Expect to see many more stories like this next year:
- Decentralized Finance (DeFi): DeFi platforms are maturing, offering intuitive interfaces and advanced tools that unlock new opportunities for borrowing and yield generation. AI integration is enhancing strategies, while stablecoins continue to provide critical liquidity for trading pairs and lending protocols. The ability for projects to share revenue with token holders—without crossing securities boundaries—could be a game-changer in attracting institutional capital.
- Decentralized Physical Infrastructure Networks (DePIN): DePIN is connecting blockchain to real-world infrastructure like energy grids, supply chains, and telecommunications. Projects like Helium Mobile (120k+ subscribers), Glow’s solar deployments, and GEODNET’s 11k-node RTK network illustrate how these networks are evolving from speculation-driven incentives into sustainable ecosystems delivering real services. Their momentum and the success of other emerging projects will drive headlines in 2025.
- NFT Revival and Digital Culture Resonance: After a period of stagnation, the NFT market looks to be making a comeback. Initiatives from projects like Pudgy Penguins and RektGuys are demonstrating the value of NFTs beyond digital art, finding applications in merchandizing, consumer products, token-gating, identity verification, and loyalty programs. Additionally, NFT ticketing platforms are gaining traction, looking to challenge the powerful monopolies who are coming under increased regulatory scrutiny of their own. It’s a highly contested part of the market, but I believe we’ll be hearing a lot about NFTs in the coming months.
A Powerful Convergence
One of the most exciting intersections in technology today is the confluence of blockchain and artificial intelligence. AI agents, increasingly capable of autonomous decision-making and task execution, are finding applications across industries. When integrated with blockchain, these agents gain enhanced security, transparency, and accountability. Perhaps most importantly, they also gain access to the on-chain economy, with its embedded digital asset ownership and value transfer, allowing them to contribute to crypto’s economic output autonomously. What have started out as digital characters that raise funds and deploy the capital on-chain will continue to evolve. They are already optimizing investment strategies and enhancing fraud or exploit detection.
Stablecoins play a critical role here, enabling AI agents to transact across blockchains, applications, and even global payments seamlessly. With growing acceptance, stablecoins provide the universal liquidity needed for AI agents to operate within a decentralized tapestry of financial and logistical applications. Decentralized markets for computational power and data, driven by AI advancements, are enabling the creation of Distributed Physical Infrastructure Networks (DePIN) and leveraging privacy-preserving technology to democratize the training of transformer models. These networks allow industries to allocate resources more efficiently, reducing costs and improving performance, while empowering users through monetization of their information and activity.
Looking ahead, AI and blockchain are poised to reshape industries by automating complex workflows and enabling smarter decision-making. The latter serves as an offset to the inherently centralizing force of the former. Ethical challenges such as data bias, transparency, and accountability remain critical. The industry’s success will hinge on developing robust governance frameworks that balance innovation with responsibility.
The Road Ahead
The blockchain industry stands at an inflection point. As 2024 comes to a close, the sector has demonstrated an extraordinary ability to adapt, innovate, and overcome obstacles—from regulatory uncertainty to technological challenges. The rise of Bitcoin as a modern portfolio diversifier, the growth of tokenized dollars and other traditional assets, and rapidly improving user interfaces underscore the industry's dynamic evolution.
In 2025, the interplay of institutional adoption, regulatory clarity, and technological breakthroughs will likely define the next chapter of this journey. Stablecoins will further cement their role as the financial backbone of blockchain applications, while AI and digital property rights’ convergence will open doors to entirely new markets and efficiencies. With increasing collaboration between academia, traditional finance and blockchain innovators, the industry is poised to enter a period of accelerated growth and mainstream acceptance.
Challenges remain and mistakes will be made along the way, but the hard work and difficult lessons will lead to groundbreaking progress. The coming year promises to be transformative, paving the path for blockchain to redefine global financial and technological systems. As we look ahead, one thing is clear: the story of crypto is far from over, and its best chapters still lie ahead. Critically, don’t forget this is a highly cyclical industry.
On behalf of the Aquanow team, I wish you a wonderful 2025!
