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From TradFi to DeSci: Trending Investment Themes in 2025
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2025-09-08 | 15m
The cryptocurrency landscape in 2025 is characterized by a decisive shift from theoretical exploration to practical implementation, driven by enhanced regulatory clarity and significant technological advancements. This report identifies and analyzes the five most compelling narratives capturing market attention and investment capital:
Real-World Assets (RWA)
,
Artificial Intelligence (AI) and blockchain integration
,
Zero-Knowledge (ZK) proof technology
,
Liquid Staking (LST)
, and
Decentralized Science (DeSci), Traditional Finance (TradFi)
. These narratives are interconnected, often feeding into and reinforcing each other, and are primarily driven by increasing institutional participation and the maturation of core infrastructure. The total value locked (TVL) in these sectors has seen substantial growth, with RWA markets exceeding $35 billion and AI-related crypto tokens experiencing dramatic capital inflow. Understanding these narratives provides crucial insight into the future trajectory of digital assets and their growing integration with global traditional finance.
Real-World Assets (RWA)
The
tokenization of real-world assets represents one of the most significant trends in 2025, effectively bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi). RWA involves converting rights to an asset—such as treasury bonds, real estate, equities, or commodities—into a digital token on a blockchain. This process unlocks unprecedented
liquidity, fractional ownership, and operational efficiency for assets that were previously illiquid or accessible only to large institutions. The market capitalization for tokenized RWA has surged to approximately $35.2 billion, signaling robust growth and institutional confidence.
A pivotal case study occurred in September 2025 when Hong Kong-based Fosun Wealth Holdings successfully
tokenized $328 million worth of shares in Sisram Medical, a company listed on the Hong Kong Stock Exchange. This tokenization was executed across multiple blockchain platforms, including Ethereum, Solana, and Sonic, utilizing a "physical custody + mapping issuance" model. This model ensures that each token is backed 1:1 by the underlying stock, which is held in regulated custody, enhancing trust and compliance. This move by a major financial institution underscores a broader shift from conceptual proofs to large-scale, practical implementations of RWA.
The regulatory environment has become increasingly conducive to RWA adoption. The United States'
GENIUS Act(Guiding and Establishing National Innovation for U.S. Stablecoins of 2025), signed into law in July 2025, provides a comprehensive federal framework for stablecoins, which are often integral to RWA ecosystems. Similarly, Hong Kong's implementation of its
Stablecoin Ordinance and the European Union's Markets in Crypto-Assets (MiCA) regulation have established clear guidelines for issuers and service providers. These developments reduce regulatory uncertainty and encourage traditional financial entities to explore asset tokenization.
Several key players are driving innovation and adoption in the RWA space.
Ondo Finance, initially focused on tokenized U.S. treasuries and bonds, has expanded its offerings to include equities.
Backed Finance issues compliant, asset-backed tokens reflecting the performance of various equities and ETFs under Swiss law.
Mantra is developing a compliance-focused Layer-1 blockchain specifically tailored for the tokenization of RWAs. Furthermore,
Block Streetis innovating by allowing users to borrow against their tokenized stock holdings, thereby introducing new DeFi lego pieces for yield generation and liquidity provision.
Artificial Intelligence (AI)
The convergence of
artificial intelligence and blockchain technology is another dominant narrative in 2025, creating a new subsector attracting significant venture capital and developer talent. The integration aims to decentralize AI development, mitigate inherent biases in centralized AI models, and create novel economic models for AI-driven services. AI-related cryptocurrency projects have raised over
$516 million in funding in the first eight months of 2025, a 6% increase from the previous year, indicating strong investor confidence.
A central theme within this narrative is the rise of
AI agents. These are autonomous software programs capable of performing complex tasks, such as executing financial transactions, on behalf of users without constant human intervention. As predicted by Mike Novogratz, CEO of Galaxy Digital, AI agents are poised to become the largest users of stablecoins. He envisions a scenario where an AI agent could autonomously manage household expenses, like grocery shopping, and complete payments using stablecoins. This fusion is expected to drive an "explosive growth" in transaction volumes and unlock innovative micro-payment business models.
Several notable projects are at the forefront of this merger. The
Artificial Superintelligence Alliance (FET) resulted from the merger of
Fetch.ai, SingularityNET, and Ocean Protocol, creating a powerful entity focused on developing decentralized AI infrastructure and ensuring AI remains open and accessible.
Flock.io leverages federated learning to train AI models on decentralized data while preserving privacy, making it suitable for sensitive industries like healthcare and finance.
Sahara AI is building a decentralized AI ecosystem focused on solving data privacy and copyright issues, having secured $43 million in Series A funding led by Pantera Capital and Binance Labs.
The infrastructure supporting AI-on-blockchain is also advancing. Projects like
0G Labs are creating decentralized AI operating systems (dAIOS) designed to provide high-performance, scalable, and low-cost storage and computation layers essential for training and deploying AI models on-chain. The potential is vast, ranging from AI-driven trading agents and data marketplaces to decentralized content creation and authentication systems.
Zero-Knowledge (ZK) Proof Technology
Zero-knowledge proof technology has evolved from a niche cryptographic concept into a cornerstone of blockchain scalability and privacy solutions in 2025. A ZK proof allows one party (the prover) to demonstrate to another party (the verifier) that a statement is true without revealing any specific information beyond the validity of the statement itself. This property is crucial for enhancing
transaction privacy, enabling compliant identity verification, and scaling blockchain networksthrough innovative Layer-2 solutions like ZK-rollups.
The interest in ZK technology has surged dramatically. Howard Wu, a prominent figure in the ZK space and co-founder of projects like Aleo, noted that discussions around ZK proofs were almost nonexistent five years ago but have now become central to blockchain innovation. This growing interest is directly impacting the market; the native tokens of ZK-focused protocols, such as zkSync (ZK), have experienced significant price appreciation and trading volume increases. For instance, in May 2025, zkSync's token saw a 5.3% price increase to $0.18, coupled with a 28% surge in its 24-hour trading volume, reaching $45 million.
Key applications of ZK technology are diverse.
ZK-Rollups bundle numerous transactions off-chain and submit a single cryptographic proof to the main blockchain (e.g., Ethereum), drastically reducing transaction fees and increasing throughput without compromising security. In the realm of
privacy-preserving transactions, ZK proofs allow users to transact publicly while shielding sensitive information like the amount, sender, and receiver. Furthermore, ZK technology enables protocols like
zkKYC, where users can prove they have passed Know Your Customer checks without exposing their personal data, balancing regulatory compliance with privacy.
The development landscape is bustling with activity. Major Layer-2 networks like
Polygon zkEVM and
StarkNet are continuously enhancing their ZK-based scaling solutions. Aleo is focused on building a Layer-1 blockchain that prioritizes privacy for decentralized applications. The evolution of ZK technology is not just a technical improvement; it is a critical enabler for broader enterprise adoption and more complex, privacy-sensitive use cases on blockchain networks.
Liquid Staking (LST)
Liquid staking has become an fundamental primitive within the cryptocurrency staking ecosystem, addressing a critical pain point: the illiquidity of staked assets. Traditionally, when users stake their tokens (e.g., ETH, SOL) to help secure a proof-of-stake network and earn rewards, those assets are locked and cannot be used for other purposes. Liquid staking protocols solve this by issuing users a
liquid staking token (LST), which is a redeemable receipt token representing their staked asset and accrued rewards. These LSTs can then be freely traded, used as collateral in DeFi protocols, or integrated into other yield-bearing strategies, thereby unlocking the latent value of staked capital.
The total value locked (TVL) in liquid staking protocols has soared, exceeding
$48 billion in 2025. While Ethereum-based LSTs like Lido's stETH and Rocket Pool's rETH continue to dominate, liquid staking is expanding to other major ecosystems, including Bitcoin. Projects like
Lombard (with LBTC) and
Babylon are bringing Bitcoin into the staking economy, allowing BTC holders to earn yield while using their liquid bitcoin tokens (LBTC) in DeFi applications, transforming the asset from a static store of value into a productive financial tool.
A landmark regulatory development occurred in August 2025 when the
U.S. Securities and Exchange Commission (SEC) issued guidance clarifying that, under specific structures, liquid staking activities do not constitute an issuance or sale of securities. Furthermore, the SEC stated that staked receipt tokens (SRTs) themselves are not securities but are merely receipts for the underlying staked assets. This regulatory clarity is a monumental step forward, removing a significant overhang of uncertainty for the sector and paving the way for traditional financial institutions to participate more freely. It has also ignited expectations that spot Ethereum ETFs in the U.S. might soon be permitted to engage in staking, using LSTs to manage fund liquidity efficiently.
The utility of LSTs extends far beyond simple representation. They are deeply integrated into the DeFi ecosystem. Users can provide LSTs as liquidity in automated market maker (AMM) pools on decentralized exchanges (DEXs) like Curve and Uniswap, earning trading fees on top of staking rewards. LSTs are also widely accepted as collateral for borrowing on lending platforms such as Aave and Compound. This composability creates powerful, layered yield strategies often referred to as "yield stacking" or "super-charged yield," making LSTs a cornerstone of modern DeFi.
Decentralized Science (DeSci)
Decentralized Science (DeSci) is an emerging but rapidly growing narrative that leverages blockchain technology, token-based incentives, and decentralized governance to address systemic challenges in traditional scientific research. The DeSci movement aims to create a more
open, collaborative, and efficient scientific ecosystem by tackling issues like restrictive intellectual property (IP) models, funding bottlenecks, limited data sharing, and reproducibility crises. By 2025, DeSci has gained substantial traction, moving from a conceptual idea to a space with live platforms and tangible experiments.
A core application of DeSci is in the realm of
research funding. Traditional grant allocation processes through government bodies and private institutions are often slow, competitive, and subject to bias. DeSci platforms explore alternative models, such as using
retroactive funding mechanisms or deploying
DAO-based grant distributions. In these models, communities of stakeholders, rather than centralized committees, can direct funding to projects they deem most valuable or promising. Furthermore, researchers can tokenize their projects or intellectual property, selling fractional ownership to raise capital directly from a global pool of investors.
Another critical area is
data sharing and collaboration. Blockchain-based platforms facilitate the creation of open, immutable, and transparent databases for scientific data. This can enhance data integrity, ensure proper attribution, and accelerate discovery by allowing researchers worldwide to access and build upon existing datasets. Some projects are also experimenting with
tokenized incentives to reward data sharing and successful replication studies, which are crucial for verifying scientific findings but are often undervalued in the current system.
While the DeSci ecosystem is still in its relative infancy compared to other 2025 narratives, its potential impact is profound. It promises to democratize access to scientific funding, break down silos between research institutions, and create new economic models for scientists and innovators. As the infrastructure matures and more researchers engage with the model, DeSci could fundamentally reshape how knowledge is created, validated, and commercialized on a global scale.
Traditional Finance (TradFi)
TradFi, short for Traditional Finance, refers to the established financial system that operates outside the realm of cryptocurrencies and blockchain technology. It encompasses well-established financial institutions such as banks, investment firms, insurance companies, and regulatory bodies that have been around for decades or even centuries.
TradFi is built on centralized systems and is governed by various regulatory frameworks designed to maintain stability, security, and accountability in financial transactions. It primarily relies on intermediaries like banks and financial institutions to facilitate transactions, enforce regulations, and provide financial services to individuals and businesses.
Unlike DeFi, which operates on decentralized and permissionless blockchain networks, TradFi relies on centralized databases and legacy technologies for record-keeping, transaction processing, and asset custody. Transactions within TradFi often involve fiat currencies, such as the US dollar or Euro, and rely on traditional methods like wire transfers or paper-based contracts.
TradFi offers a wide range of financial products and services such as savings accounts, loans, credit cards, mortgages, and investment opportunities through stocks, bonds, and mutual funds. It operates under the oversight of government authorities, such as central banks and financial regulatory bodies, to ensure compliance with regulations and protect consumers.
While TradFi has been the prevailing financial system for centuries, the rise of cryptocurrencies and blockchain technology has brought about disruptive changes and the emergence of alternative financial systems like DeFi. DeFi aims to offer decentralized and programmable financial services that eliminate intermediaries, increase transparency, and provide greater financial inclusion.
Conclusion
The five narratives outlined—
RWA, AI integration, ZK technology, Liquid Staking, TradFi and DeSci—collectively paint a picture of a cryptocurrency industry that is maturing, diversifying, and deepening its integration with the global economic fabric. These are not isolated trends; they are deeply interconnected. ZK technology provides the privacy and scalability needed for enterprise RWA adoption and secure AI computation. Liquid staking derivatives form the bedrock of yield generation within DeFi, which itself is merging with TradFi through RWA. AI agents will likely interact with decentralized markets using stablecoins.
Driving these narratives are two overarching themes:
institutional adoption and
regulatory maturation. The clear regulatory frameworks emerging in key jurisdictions like the U.S., EU, and Hong Kong provide the certainty necessary for large institutions to engage. Meanwhile, continuous technological innovation is solving critical problems related to scalability, privacy, and interoperability, making blockchain networks more capable of supporting complex real-world applications.
For investors, developers, and observers, understanding these narratives is key to navigating the crypto landscape in 2025 and beyond. The era of pure speculation is giving way to a period of utility-driven value creation, where the technologies championed by the crypto community begin to tangibly transform established industries like finance, artificial intelligence, and scientific research.
Reference:
Cointelegraph. (2025, September 4).
Hong Kong's Fosun Tokenizes $328M in Stocks: A Comprehensive Look at the Future of RWA Finance. Retrieved from
https://tw.cointelegraph.com/news/hong-kong-s-fosun-tokenizes-dollar328m-in-stocks-a-comprehensive-look-at-the-future-of-rwa-finance
Blockchain News.
The Rise of Zero-Knowledge (ZK) Technology: Consensus 2025 Brings New Opportunities for Cryptocurrency Trading. Retrieved from
https://blockchainnews.azurewebsites.net/zh/flashnews/zero-knowledge-proofs-zk-surge-in-crypto-trading-insights-from-consensus-2025-zh
AICoin. (2025, August 6).
SEC Clarifies That Liquid Staking Does Not Involve Securities Issuance. Retrieved from
https://www.aicoin.com/zh-Hans/article/477200
Binance Square. (2025, April 15).
Narratives? Top Narratives Worth Watching in 2025 (Update). Retrieved from
https://www.binance.me/zh-CN/square/post/22963967000913
Blockchain News. (2025, July 5).
Top ZK (Zero-Knowledge) Technology Trends and Trading Opportunities in 2025: Howard Wu Shares In-Depth Analysis. Retrieved from
https://blockchain.news/zh/flashnews/top-zk-zero-knowledge-trends-and-trading-opportunities-in-2025-insights-from-howard-wu-zh
Blockchain News. (2025, September 6).
AI Crypto Trading Signal: Narrative and Stablecoin Market Cap Metrics Signal Cautious Outlook (June 2025). Retrieved from
https://blockchain.news/flashnews/ai-crypto-trading-signal-narrative-and-stablecoin-market-cap-metrics-signal-cautious-outlook-june-2025
CoinCatch Team
Disclaimer:
Digital asset prices carry high market risk and price volatility. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance. CoinCatch is not responsible for any losses that may occur. This article should not be considered financial advice.
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