part of being successful in crypto is keeping an eye on the biggest narratives what about narrative uh narratives are just games the thing is most people pay attention to the narrative that's big right now rather than the one that comes next what comes next and crypto VCS know this which is why they are constantly looking for what could be the next big thing and as it happens a recent article published by one of crypto's biggest VCS reveals what narratives we should be watching in 2025 this is the year 2025 my name is Nick and today
we'll summarize this article and tell you which cryptos could go inter Stellar as a result before we go any further you need to know that nothing in this video is financial or investment advice this video is purely for education and entertainment purposes only so with that out of the way let's dig the piece we'll be looking at today is titled quote a few of the things we're excited about in crypto in 25 it was written by Andre and Horowitz more commonly known as a16z we leave a link to the full article down in the description
but we'll be summarizing everything for you here in simple terms now the article starts with one of crypto's most exciting developments and that's AI agents in case you didn't know AI agents are a major step up from AI chat Bots like chat gbt that's because they're able to interact with one another and can operate without human intervention as such AI agents are colloquially referred to as AI 2.0 and this is something we covered in a recent video and we'll leave a link to that in the description for you to come back to later anyway the
authors note that AI agents have already given a glimpse of their potential some like terminal of truths have shown that they can interact with crypto which opens the door to a world of new possibilities however this is just the beginning as AI agents become more autonomous we'll start to see them being used for some serious viously interesting stuff this could range from operating deeper nodes to being autonomous crypto whales we could even see blockchains being fully built and operated by AI agents now that would be really insane and this relates to the second prediction which
is that the AI chat Bots or AI 1.0 will also become more autonomous the reports authors note that there's already an AI running applications in an isolated environment and the next step could be what they call quote a decentralized autonomous chatbot basically this AI chatbot would be able to build a social media following it could also generate income from its audience and manage its Assets in crypto as well and not only that but the chatbot could also have full autonomous control over its private crypto keys and could apparently become the first autonomous billion dollar entity
what's strange though is that this is just another description of AI agents in fact if you watched our recent video on AI agents you might recall that there's one called Luna which literally does everything we just mentioned including having autonomous control of a crypto wallet in any case the authors then point to the proliferation of AI being used to scam people via deep fakes and impersonations and say that this problem needs to of course be addressed and one way to do this would be with something called proof of personhood as the name suggests this would
be some kind of digital proof that what you're seeing is indeed a person and not some computer generated BS in other words a digital ID from our perspective these are Dangerous Waters To Tread as you'll probably know digital IDs are something that entities like the United Nations or un are actively trying to roll out this dystopian Tech would centralize your personal data making surveillance easier for the powers that be and making privacy virtually impossible for you and me more about that in the description oh and by the way if you're feeling bullish about 2025 show
it by Smashing those like And subscribe buttons and you may also want to hit those Bell notifications too to make 100% sure you don't miss any of the alpha we have coming next year moving on okay in the next part of the article the reports authors explain that while prediction markets such as poly Market have recently become popular throughout the US presidential election campaigns they won't be as transformative as people might think H and that's because they often yield unreliable results making it difficult to gather quality information instead quote prediction markets set the stage for
more distributed Technology based information aggregation mechanisms in other words using blockchain technology to gather and share information in a more efficient way according to the authors this would benefit of variety of use cases from Community governance to finance and much more besides the authors note that while prediction markets are um unreliable there are other mechanisms out there to incentivize people to truthfully share information and many of these have already found their way into crypto and that's because blockchains are a perfect fit for these mechanisms due to their decentralized and public nature meaning it's much harder
to corrupt or influence any data and that the data can be verified by anybody next the authors predict that larger businesses will experiment with using stable coins for payments rather than trafy payment rails and that's because stable coin fees are considerably lower due to the lack of intermediaries they add that small and medium-sized businesses such as coffee shops for example will be the first to switch since these are the ones that are hit hardest by credit card processing fees as for larger businesses the authors add that quote if stable coins indeed speedrun Bank in history
then ENT Enterprises will attempt to disintermediate payment providers adding 2% directly to their bottom line now 2% might not sound like a lot to you or me but to massive companies with billions of dollars in the bank this is actually a huge difference in the next part of the report the authors predict that we'll see an increase in the number of government bonds being put on chain now tokenizing these bonds would create interest bearing digital assets that don't compromise on privacy unlike the dystopian alternative of central Bank digital currencies or cbdcs those countries with governments
that are more pro-innovation could begin to explore the benefits of triing government bonds on the blockchain and the authors give the UK as an example here where the financial conduct Authority or FCA is already exploring digital Securities meanwhile across the pond the authors say that we should anticipate more discussions in the US about the advantages of onchain bonds including greater transparency improved efficiency and broader participation in bond trading for the next narrative the authors explain that recently Wyoming passed a law to recognize Dows as legal entities through a new structure called the Duna which stands
for decentralized unincorporated nonprofit Association essentially Duna gives us-based crypto projects and Dows more legal legitimacy and this allows them to take care of tax and compliance requirements and can even separate token holders from any liability notably the authors point out that this is quote the only viable structure for us-based projects as such they expect this to become a standard way of doing business then the report makes a pretty Cipher Punk prediction quote as people become increasingly dissatisfied with the current governance and voting systems there's now a window of opportunity to experiment with new tech enabled
governance not just online but in the physical world it goes on to say that blockchains could be used to ensure secure voting for elections and could even open the door to the so-called liquid democracy where people can vote directly or let someone vote on their behalf this was something that was deemed impossible until recently but thanks to advances in Computing and blockchain Technology it's now a possibility in the next part of the report the authors give a few predictions on how developers will build future applications and infrastructure the first of these is that Builders are
more likely to use the infrastructure developed by others rather than constantly trying to reinvent the wheels so to speak and that's simply because it's quite common for newer versions to have some sort of a shortfall which can actually make them less efficient and this ties into the next prediction which is arguably the most important and that's because the authors predict that developers will focus on the end user experience first and let that determine the underlying architecture we say this is the most important because crypto's user experience undeniably needs Improvement if we're to see Mass adoption
anytime soon the thing is though not only would this benefit the user it would also benefit the project in question and that's because it would allow the team to focus on finding a product Market fit rather than building the most overly complicated blockchain application first and hoping it catches on in other words the more userfriendly the product is the more us it will get kind of funny how obvious it sounds when you say it out loud to add to this another prediction is that the next wave of web3 applications will abstract much of the crypto
jargon away from the surface hiding the wires so to speak while blockchain technology has near Limitless capabilities the truth is that the complexity can be kind of off-putting to Outsiders I mean can we honestly expect to tell a nocoiner about things like modular blockchains or ZK evf and expect them to jump on board right away of course not the report actually draws comparisons to the early days of email where users could hit send without worrying what's going on on the back end or Spotify which revolutionized music by abstracting away file formats to be blunt this
is the very approach that's been lacking across many protocols now the final section of the report touches on narratives that relate to crypto's adoption and the first of these is specialized App Store is similar to platforms like Google play or Apple's App Store as you'll know these platforms have a duopoly on the mobile app sector and aren't particularly crypto-friendly they're known for exploiting application developers or even censoring apps entirely naturally this limits the accessibility of people wanting to explore the space however we're now starting to see crypto app stores being created uh such as the
DAP store for salana mobile phone users or the world app Marketplace for the cont controversial worldcoin and as the authors point out there are thousands of daps spread out across multiple ecosystems as well as platforms focused on blockchain gaming now the authors explained that while crypto has made many advancements in 2024 such as the political engagement we've seen in the US elections or the roll out of spot Bitcoin and ethereum ETFs now is the time for crypto holders to become crypto users according to the article there are around 617 million people around the world who
already own crypto and yet the number of people actively using crypto is Tiny I mean somewhere between five and 10% of those holders on the one hand this is great this means that when you consider the number of crypto users set against the global population there's still an incredible amount of growth potential however it also raises the question of how much adoption we can expect from The Wider world when our own crypto natives seem to take a shall we say passive approach however the authors add that quote early applications we've already seen across categories like
stable coins defi nfts gaming social deepen Dows and prediction markets are starting to become more accessible to mainstream users and for the final 2025 narrative the authors highlight real world assets and they note that as crypto infrastructure gets more efficient and cheaper to use the process of tokenizing assets will become more common in many Industries and these assets which were previously considered to have minimal value could in fact now be traded and used in the global economy and the authors actually compare this to frackin uh just as it made previously unreachable oil accessible tokenization could
unlock new ways to make money from unusual assets for example people could digitize and Lease their health or biometric data securely using blockchain technology in fact there are already a few instances of this in decentralized science companies or dii where medical data is gathered through blockchain technology in a more transparent and consensual Way D mm I bet that's a new one for you so then which cryptos could benefit most from these narratives to refresh your memory a16z highlighted several narratives to watch these been AI agents prediction markets Dow infrastructure account abstraction and improved deps so
let's start with AI agents which we think could be a huge narrative in 2025 now while you could place your bets on individual tokens associated with their own AI agent there's a much less risky approach you could take and that's because the underlying blockchain's supporting AI agent infrastructure will capture a lot of this value the catch is that many projects are moving towards AI so only the ones with the strongest infrastructure rure will outperform for example there's the artificial superintelligence alliances fit in case you didn't know artificial superintelligence Alliance is what fetch.ai became after it
merged with Singularity net and ocean protocol it's sort of like crypto AI version of The Avengers and there's also the virtuals protocol which lets you create AI agents with very little effort we suspect that crypto could become spammed with AI agents in a similar way that pump. funds spammed us with the mean coins let's just hope this doesn't create an army of AI agents that go all Sky Net on us as for prediction markets there are some incredibly risky projects you could look at but just like the AI agents you're probably better off going for
the underlying blockchains in this case that would be smart contract cryptos like salana or even ethereum in fact polygon could also be worth considering considering that the biggest prediction Market poly Market was built on polygon's Tech and by the way full disclosure I do hold so in my personal portfolio when it comes to di infrastructures cryptos that offer Simplicity could see the most use so naturally this includes interoperability projects like Cosmos whose chains have built ing governance mechanisms we're also seeing the emergence of governance platforms like Realms on salana which could someday launch a token
for early users there's some Alpha for you as for account abstraction cryptos the elephant in the room that nobody seems to notice is near protocol which also happens to be an AI crypto near protocol launched something called chain signatures over the summer which makes it possible to access Wallets on different chains from a single wallet on neara definitely not a crypto to sleep on and one that I also hold and finally we have improved deps which is where things get really interesting some deps such as Unis swap have launched their own wallets and even their
own chains a is in the process of doing something similar so this suggests that the top performing cryptos in the DAP space will be those which are building their own userfriendly infrastructure and optimizing their Protocols of course there are plenty of other coins and tokens that we haven't mentioned that could do just as well as the ones we've covered maybe even better the key thing to remember is to keep keep your finger on the pulse you'll need to do the research to find the hot Narrative of right now and ask yourself where this hype could
be rotating to next and if you're not sure how to start doing your own research then we recommend you check out our guide on how to D yo R right over here in the top right now is there a narrative that you have your eye on in 2025 let us know down in the comments thank you so much for watching and I'll see you the next time this is Nick over and out [Music]
