6 Blockchain Trends in 2025: From AI Agents to L2 Upgrades

Every year, blockchain and cryptocurrency technology comes a step closer to mass adoption.

In 2024, the introduction of spot crypto exchange-traded funds (ETF) justified the inclusion of Bitcoin (BTC) and Ether (ETH) as legitimate investment assets.

2025 looks to build on this progress as developers refine blockchain technology by executing user experience-focused upgrades and improving layer two (L2) decentralization, among others.

What else does 2025 have in store for the blockchain industry? Let’s find out as Techopedia defined six blockchain trends for 2025.

Table of Contents Table of Contents

1. Key Takeaways
2. Key Blockchain Trends for 2025
3. The Bottom Line
4. FAQs
5. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Key Blockchain Trends for 2025
3. The Bottom Line
Show Full Guide
4. FAQs
5. References

Key Blockchain Trends for 2025

Here are the major blockchain development trends for 2025, including Layer 2 upgrades, better UX, and AI crypto agents, among others.

1. Improved UX With Account Abstraction Technology

Decentralized finance (DeFi) users will be the first to admit that the on-chain experience has to be a lot more seamless to draw mainstream adoption.

Wallet seed phrase management, gas fee payments, cross-chain bridging, and digital signatures present significant adoption barriers.

Account abstraction is a user experience-focused (UX) blockchain technology trend that will accelerate in 2025.

Developers will introduce and improve abstraction technologies such as artificial intelligence (AI), smart wallets, gasless transactions, and native account abstraction chains in a bid to make the on-chain experience identical to the internet we know today.

Coinbase Institutional said in a report:

“While crypto has historically focused on deep technological onboarding due to its cypherpunk roots, we believe the focus is now rapidly shifting towards a simplified user experience. In particular, there is a sector-wide push to abstract the technology aspects of crypto into the background of applications. A number of recent technological breakthroughs are making this transition possible, such as the adoption of account abstraction to streamline onboarding and the use of session keys that reduce signing friction.”

2. Layer Two Upgrades for Better Decentralization

Ethereum is all-in on scaling via L2 rollups. Up until now, the crypto community had lowered their decentralization expectations from L2 scaling solutions to allow them room to grow using temporary “training wheels.”

For example, established L2 blockchain chains such as Arbitrum (ARB) and Base – which account for a total value locked (TVL) worth $6.48 billion – are currently operated by a single sequencer who has the responsibility of executing L2 transactions.

As the L2 sector hits adolescence, there have been growing calls to remove these training wheels to make L2 chains more secure and decentralized.

Technical L2 upgrades is a key blockchain development trend that will accelerate in 2025 that will see more rollup chains integrate zero-knowledge (zk) proof systems and remove validator restrictions to create a trustless setup.

Ethereum co-founder Vitalik Buterin wrote in a 2024 blog post:

“The ecosystem’s standards need to become stricter: so far, we have been lenient and accepted any project as long as it claims to be ‘on a path to decentralization.’ By the end of the year, I think our standards should increase and we should only treat a project as a rollup if it has actually reached at least stage 1.”

3. AI Crypto Agents Development

AI is disrupting every industry known to man, and blockchain and cryptocurrencies are no exception. Therefore, the convergence of AI and crypto is a key blockchain industry trend that cannot be ignored in 2025.

The emergence of decentralized finance artificial intelligence (DeFAI) is a prime example. DeFAI projects use AI agents to simplify and automate interactions between humans and DeFi protocols.

Crypto expert 0xJeff spoke of the potential of AI crypto agents in an article, saying:

“Why spend hours digging for alpha, manually executing trades, and trying to optimize your portfolio when you could have an agent do it for you? Autonomous trading agents are taking the idea of trading bots to the next level, transforming them into dynamic companions that adapt, learn, and make smarter decisions over time.”

4. Tokenized Real World Asset Acceleration

Another recent trend in blockchain technology is related to tokenized real-world assets (RWA). In 2024, the total value of RWAs, excluding stablecoin, nearly doubled in value from $8.396 billion to $15.274 billion. Experts expect the tokenization of RWA such as government treasuries and corporate bonds to continue into the new year.

According to crypto venture capital firm a16z, more countries could begin trial issuing government bonds on-chain to take advantage of blockchain technology’s global reach and permissionless nature.

Meanwhile, Coinbase Institutional sees more traditional finance firms expanding into tokenization as blockchain education increases and companies recognize the operational cost benefit of using the technology. They said:

“Overall, we view 2025 as a pivotal year for tokenization growth. Improved tokenization technology, better compliance tooling, and potential advancements in the regulatory landscape will enhance the scalability and utility of tokenized RWAs. The institutional case for tokenization is also no longer speculative; the benefits of faster settlement, reduced transaction costs, and increased capital efficiency are abundantly clear.”

5. Crypto Regulations Updates

Every year, we talk about the incoming regulatory clarity wave, but there is something different about 2025.

For starters, the US has never seen a more pro-crypto US legislature before. In Europe, the full implementation of Markets in Crypto-Assets Regulation (MiCA) has introduced a new standard for stablecoin regulations.

2025 will build where 2024 left off. The last year saw two crypto bills – Financial Innovation and Technology for the 21st Century Act (FIT21) and CBDC Anti-Surveillance State Act – passed in the US House of Representative. These bills will be presented before the US House of Senate next.

According to financial crime blockchain analytics company Elliptic, outlining blockchain future trends, in 2025, regulators and policymakers will focus on responding to pig butchering scams and the use of stablecoins in sanctions evasion.

6. Crypto Reserve Assets Adoption

US President Donald Trump’s support for the cryptocurrency industry is expected to give digital assets and blockchain technology unprecedented global attention. The 45th president of the United States made headlines during his election campaign by announcing plans to create a strategic Bitcoin reserve in the US to fight inflation and rising debt in the world’s largest economy.

It has to be said that there is no guarantee that the Strategic Bitcoin Reserve bill will be approved by the US bicameral legislature in 2025. However, Trump’s backing for the bill has got governments and corporations around the world to consider ways to do so themselves in their own capacity.

Most recently, in Wyoming, Representative Jacob Wasserburger introduced the State Funds-Investment in Bitcoin Act in January 2025, aimed at creating a Bitcoin reserve for the state.

Elsewhere in Asia, the Kingdom of Bhutan announced plans on January 8, 2025, to recognize BTC, ETH, and BNB as part of its strategic reserves for a special administrative region called Gelephu Mindfulness City.

The Bottom Line

2025 has started on a positive note for the blockchain enthusiasts. With Donald Trump championing cryptocurrencies, public blockchain technology is expected to thrive on expectations of better regulatory clarity and support from world leaders.

As we move forward, one thing is clear: blockchain will play a key role in shaping the future of the world economy and society.

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