Venture capital firm Andreessen Horowitz (a16z) has identified several key trends expected to shape the crypto industry in 2025, with a focus on the integration of artificial intelligence (AI) and blockchain technologies.
According to a16z's report, AI-powered applications running onchain are set to drive growth, with three key emerging trends predicted.
The firm anticipates the rise of wallets driven by AI agents, decentralised autonomous chatbots, and proof-of-personhood solutions.
Notably, a16z sees decentralised chatbots being used for tasks like social media content management and asset management.
“Running on a permissionless set of nodes, and coordinated by a consensus protocol, the chatbot could even become the first truly autonomous billion-dollar entity,” the report states.
A16z also predicts that stablecoins will gradually replace credit card transactions for small- and medium-sized businesses.
These businesses, especially those with strong customer bases, will turn to stablecoins to reduce payment costs.
“Small-/medium-sized businesses with strong brands, captive audiences, and painful payment costs — like restaurants, coffee shops, corner stores — will be the first to switch from credit cards,” the firm explains.
In addition, tokenisation is expected to expand with more unconventional assets moving onto blockchain networks.
As blockchain infrastructure improves, assets like biometric data are expected to be tokenised, creating new revenue streams.
“Individuals could tokenise their own biometric data; and then lease the information through smart contracts to companies,” A16z notes.
Another major development on the horizon is the tokenisation of government bonds.
A16z predicts that, following significant institutional adoption in 2024, governments will begin issuing digital bonds.
“The UK, for instance, is already exploring digital securities through a sandbox at their financial regulatory body, the FCA (Financial Conduct Authority),” as the report highlights.
These trends suggest a transformative year for the crypto industry in 2025.