The key driving force for the Web3 industry in 2025 is the convergence of blockchain and AI.

The key driving force for the Web3 industry in 2025 is the convergence of blockchain and AI.

Five key keywords for the Web3 industry outlook this year were the convergence of artificial intelligence (AI) and blockchain, Bitcoin, decentralized finance (DeFi), popularization, and community-led projects. On the 6th, Despread, a Korean web3 consulting firm, released a report containing such information. First, the combination of AI and blockchain is expected to expand the mass adoption of large language models (LLMs) shown by the ChatGPT craze last year to Web3. AI-based technology is expected to expand the use of various on-chain use cases such as smart contract automation, trading optimization, and market prediction beyond simple chatbots, thereby promoting an increase in transaction volume across the blockchain ecosystem.

Bitcoin was another key keyword presented in the DeSpread report. In particular, as US President-elect Donald Trump is likely to adopt Bitcoin as a strategic reserve asset, the asset value of Bitcoin is expected to be further strengthened on a global scale. In addition, the advancement of 'chain abstraction' technology is expected to reshape the landscape of the DeFi market by allowing users to simply exchange Bitcoin for other assets without having to go through complex network transitions.

blockchain crypto cryptocurrency key driving force the web3 industry in 2025 (SpotedCrypto)

In the DeFi sector, fierce competition is expected as various layer-1 blockchain projects join the race to deposit Bitcoin. Above all, projects that provide “DApps” that combine the stability of Bitcoin with high returns are likely to lead the market. In addition, innovative services such as the Bitcoin DeFi Yield Aggregator, which allows users to see the yield of multiple DApps at a glance, are expected to emerge. DeSpread emphasized that the resolution of the securities issue in DeFi will mark a new turning point in the DeFi ecosystem. DeFi protocols based on the “P-Switch” and “Real Yield” models will be activated, and convergence with real-world assets (RWAs) will accelerate, creating an environment that is easily accessible to ordinary investors.

The report also mentions the importance of community-led projects. The report also mentions the importance of community-led projects. It analyzes that the early contributors and community-oriented token distribution method will reduce dependence on venture capital and contribute to realizing the decentralized philosophy of blockchain. This is considered to be a practical example of the decentralized ecosystem that Web3 aims to achieve.

In addition, the popularization of Web 3 and virtual assets is expected to achieve greater results through convergence with existing traditional financial products and integration of Web 2 and Web 3. Financial products such as the Bitcoin spot ETF have laid the foundation for popularization, and projects that combine social networks and on-chain activities are expected to continue to spread.