As 2025 approaches, let's examine how crypto VCs view market developments and potential opportunities.
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As 2025 approaches, let's examine how crypto VCs view market developments and potential opportunities.
This article compiles observations and insights on the crypto industry from over ten top-tier VCs.
Navigating Web3 tides with focused insightsAuthor: Zen, PANews
As the New Year approaches, the crypto industry is entering a new phase of development. In 2024, the market experienced recovery, innovation, and adjustment—established projects strengthened their positions while emerging sectors quietly rose, laying the groundwork for the future. Amid these shifts, venture capital (VC) firms have served as key barometers, witnessing market changes and shaping the industry's trajectory through intersections of capital, community, and technology.
At the beginning of 2025, PANews invited over a dozen top-tier VCs to share their insights on the crypto landscape. They reflected on standout moments from the past year, analyzed current opportunities and challenges, and offered predictions about future trends. In this fast-moving space, which projects and sectors are capturing VC attention? Let’s explore the “yesterday, today, and tomorrow” of crypto through the eyes of leading investors.
Most Memorable Projects of 2024
The past year saw the crypto industry surge forward, driven by both market recovery and technological innovation. From infrastructure upgrades to breakthroughs in new sectors, numerous projects emerged with strong vitality and innovative potential. A few stood out due to unique technical approaches or business models, attracting widespread attention and leaving a lasting impact across the ecosystem.
James Wo, founder and CEO of DFG (Digital Finance Group), highlighted Hyperliquid, which started as a high-performance decentralized perpetual exchange (perp DEX) that attracted a large user base while maintaining fast execution speeds and deep liquidity. Notably, its token launch involved no VC allocation and no centralized exchange (CEX) listing, making it one of the most successful airdrops in crypto history. "The platform is expanding its offerings by launching its own HyperEVM ecosystem, featuring many native dApps to enhance utility within its spot trading ecosystem. It earns substantial fees on-chain through clearing and market-making, gradually eating into the market share of leading DEXs and CEXs," he said.
Chris, co-founder of Web3Port, also praised Hyperliquid for its market share growth, community-driven airdrop mechanism, and wealth distribution effects. He additionally pointed to Pump.fun—the most successful meme coin launchpad this year. Compared to existing platforms, Pump.fun successfully elevated the concept of “meme launchpads” into a top-tier narrative, igniting a frenzy in the meme market. According to Chris, Pump.fun demonstrates that Web3 projects can succeed by building genuinely useful products with excellent user experience and strong product-market fit.
Ryan Rodenbaugh, CEO and co-founder of Wallfacer Labs (vaults.fyi), expressed excitement about the resurgence of mature DeFi lending protocols like AAVE and Compound, along with the emergence of high-quality newcomers such as Morpho, Euler, and Ajna. Although DeFi didn’t receive the same level of spotlight during this cycle, the quiet success of these protocols remains highly noteworthy and worth tracking.
Among all the responses, Pudgy Penguins was one of the most frequently mentioned projects. Joanna, founder and CEO of Jsquare Group, commended Pudgy Penguins for single-handedly revitalizing the entire NFT sector. "As an early investor and Pudgy NFT holder, I’ve deeply felt the powerful energy of Luca, a representative of the next-generation entrepreneur who embodies the fusion of Web2 and Web3 thinking. This reinforced my belief in a core principle: Invest in the next generation."
"Ethena stood out in DeFi with its USDE stablecoin, generating profits by establishing 1x long and 1x short positions on centralized exchanges (CEX) to capture high funding rates," said Dinghan, partner at Jsquare. The collaboration between Ethena and BlackRock’s BUIDL fund ensures USDE continues to deliver stable returns even when funding rates turn negative, further solidifying its long-term viability.
How Will Bitcoin’s Market Perform?
Bitcoin showed remarkable momentum in 2024. According to CoinGecko data, BTC prices rose 119.1% cumulatively by December 31, 2024. This rally was primarily fueled by institutional adoption via spot ETFs, the April halving event, and post-U.S. election market optimism. Looking ahead to 2025, Chris, co-founder of Web3Port, believes a Bitcoin bull run is likely to continue, with a breakout above $200,000 being probable. As markets mature, supply-demand dynamics will strengthen further, making sub-$50,000 Bitcoin prices potentially obsolete in future boom-bust cycles.
Regarding Bitcoin’s upside potential next year, Allen, research analyst at Ryze Labs, shares a similar view, relying mainly on two technical indicators—Pi Cycle and 2Y MA Multiplier—to identify tops. Historically, these signals coincided on December 5, 2013; December 16, 2017; and most recently on April 12, 2021. Based on historical accuracy, Allen notes that the 2Y MA Multiplier suggests a peak around $200,000. Both indicators are available on TradingView, where alerts can be set to assist in timing exits.
"From a more conservative perspective, I expect Bitcoin’s next阶段性 peak to reach $120,000–$150,000, followed by consolidation between $100,000 and $150,000," said Evan Lu, investment manager at Waterdrip Capital. He added that based on Trump’s statements regarding a proposed U.S. Bitcoin strategic reserve, assuming gold’s market cap remains constant, Bitcoin could still be considered a growth asset until it surpasses gold in value. At that point, Bitcoin might reach $600,000 per coin—but this process could take 5 to 10 years.
Evan explained that in the previous halving cycle (May 2020), Bitcoin rose slowly and hit its first high in April 2021, climbing from ~$9,000 to $65,000. Between April and July, prices corrected significantly due to the “519 incident.” Yet, a second wave followed, pushing BTC to its all-time high. If we use the price at this cycle’s halving date as a baseline, it may mark the start of a new upward trend. He expects Bitcoin to undergo minor pullbacks or sideways movement by late 2024 to Q1 2025 before entering a second leg of gains, possibly reaching $120,000–$150,000.
"Unlike previous cycles, this market will be profoundly shaped by multiple factors—most critically, external liquidity from spot Bitcoin ETFs and sustained inflows driven by national Bitcoin reserve policies," Evan noted. This implies that instead of sharp corrections, Bitcoin may follow a steady, oscillating upward path toward higher price levels.
In discussing Bitcoin, Nemo, Investment Director at Web3.com Ventures, quoted Michael Saylor, co-founder of MicroStrategy: "Spend 1,000 hours studying it, and you’ll become a Bitcoin maximalist. You’ll realize this isn’t just a technology—it’s moral justice. Bitcoin brings freedom, economic rights, and property ownership to 8 billion people, and gives 4 million companies worldwide the chance to allocate capital into non-toxic assets."
Will the Meme vs. 'VC Coin' Debate Continue—and What Is the Solution?
The controversy surrounding so-called “VC coins” has been unavoidable in 2024. Will Wang, partner at Generative Ventures, offered a fresh take: once a VC fund exceeds $30–50 million in size, it becomes difficult to generate outsized returns for LPs. He argues that only lean, nimble funds are forced to engage deeply at the early stage, truly supporting founders in need and giving rise to legendary projects. In contrast, larger funds often fall into the trap of scaling management overhead, participating in later-stage rounds, and launching criticized “VC coins”—a problem inherited from Web2 venture models, now replicated in Web3.
"I believe this will gradually correct itself. Technology and financial innovation always begin in periods of non-consensus—and that’s exactly when VCs should act. The market ultimately rewards those willing to move decisively when others hesitate," Will added.
What lies at the heart of the meme vs. VC coin debate? Chris from Web3Port points to competition over limited market liquidity and capital. With constrained inflows, VC coins—with low circulating supply and high FDV—strain market capacity, especially as more flood the market, reducing retail appetite to absorb them. Meme coins, by contrast, benefit from full circulation and fair distribution, aligning better with investor psychology and serving as a “new weapon” for retail to challenge institutional dominance.
However, the PVP (player-versus-player) nature of meme coins is inherently unsustainable—outside a handful of top-tier projects, most lack long-term value foundations. Chris observes that beyond BTC and ETH, and a rare few DeFi infra projects with stable revenue streams, nearly all other tokens operate in PVP mode, where participants compete directly, sharing both gains and losses. Regarding solutions for the current VC coin dilemma, he sees no quick fix. Under tight liquidity and growing institutional advantages, relief will require a full bull-bear cycle to naturally cleanse the market and restore trust and fairness.
"Token issuance isn't the end—it's the beginning of real project operations," said Evan Lu, investment manager at Waterdrip Capital. Founders must abandon the mindset of treating fundraising as profit and token launches as exit events. Instead, they should seriously consider whether there are real-world use cases, sustainable cash flows, and if the project can maintain active users and authentic communities post-launch.
Jiawei, lead figure at IOSG Ventures, admitted that "VC coin" projects must better address Token-Market Fit: Is a token truly necessary? What purpose does it serve? Why would the broader community buy into it? Projects need to involve wider participation, distribute tokens widely, and strengthen alignment of interests.
Which Ecosystems, Sectors, or Projects Could Shine as Future Stars?
As crypto markets climb, new narratives like AI and DeSci are driving the industry into its next developmental phase. After enduring market cycles, leading ecosystems continue strengthening their moats, while emerging sectors quietly gather momentum for future breakout. Looking ahead, which areas might emerge as the next industry leaders? Institutions shared insightful perspectives.
Will Wang, partner at Generative Ventures, believes many misunderstand RWA (Real World Assets). "We see RWA simply as blockchain accounting for mainstream global financial assets." Currently, on-chain settlement penetration is less than 0.1%. Even a tenfold increase could spawn multiple secondary assets akin to ONDO and USUAL.
Jiawei from IOSG Ventures noted that restaking, a major narrative in 2024, hasn’t yet reflected in token prices. With AVS (Application-Specific Validation) projects launching, it could peak in 2025. Additionally, ZK-based projects (e.g., RiscZero, hardware-accelerated Ingonyama) are beginning to show market potential.
"AI Agents could become the rising stars of crypto," said Allen, research analyst at Ryze Labs. With the ability to process vast market data, AI Agents can make precise, real-time trading decisions far faster than human traders. In DeFi, they can optimize interest rates and pricing mechanisms in liquidity pools, greatly improving capital efficiency. They also open new possibilities for intelligent asset management, redefining the boundaries of portfolio oversight.
PayFi was repeatedly cited across institutions as a focal point. With growing crypto adoption, payment ecosystems enabling seamless, low-cost transactions are entering rapid development. Dinghan, partner at Jsquare, predicts that projects bridging traditional finance and crypto—such as Layer 2 solutions and stablecoin issuers—will gain significant attention. Payment protocols capable of deep integration with mainstream services and smooth fiat-crypto conversion will be pivotal in bringing crypto into everyday life.
The convergence of AI and blockchain is also seen as a key future direction. Dinghan noted that with decentralized AI infrastructure and AI agents rapidly rising, this field is entering a new growth cycle. Projects building decentralized AI networks or AI-powered applications are poised to shine. "Blockchain provides a trustworthy foundational layer for AI interactions and transactions, enhancing data transparency and security, while unlocking new avenues for autonomous AI deployment—accelerating innovation in this domain."
Could 'Mass Adoption' Finally Break Through—and Who Will Lead It?
"We’re already seeing forms of mass adoption across different sectors," said James Wo, founder and CEO of DFG. Verticals like DePIN are drawing in Web2 users by allowing them to contribute resources and create value within ecosystems. For example, Helium connects with established Web2 telecom giants via 5G networks, while Render offers low-cost GPU access benefiting gaming, rendering, and AI. James believes payments may be the next catalyst for broader adoption. Infrastructure enabling efficient crypto payments and fiat settlements for brick-and-mortar stores could spark a new wave of users—especially as retail investors increasingly hold digital assets, accelerating this trend.
Zeke, Investment Research Manager at YBB Capital, believes the payment sector is poised to become blockchain’s first true mass-adoption channel. Stablecoins have already demonstrated superior efficiency compared to traditional banking systems in non-dollar economies. For residents of developing nations, they offer protection against local currency inflation, enable virtual service subscriptions, and facilitate financial investments. Once regulatory frameworks are established, the potential of this sector rivals trillion-dollar Web2 payment systems. Massive demand will fuel a wave of startups—from stablecoin issuers upstream to payment service providers downstream—ushering in a true era of diversification. The dawn of blockchain’s first large-scale application may well begin here.
Joanna, founder and CEO of Jsquare Group, expressed optimism about progress toward mass adoption in the coming year. She views mass adoption as twofold: bringing in money (from institutions and retail) and bringing in users (mainly retail). Traditional institutions are likely to enter due to policy incentives, while among retail users, Solana’s ecosystem holds a leading edge in positioning and sector selection. She also places high hopes on Pudgy Penguins within her portfolio, expecting breakthroughs and believing Luca can set a benchmark for next-gen entrepreneurs.
Ryan Rodenbaugh, CEO and co-founder of Wallfacer Labs (vaults.fyi), believes improved front-end user experiences will drive this breakthrough—making DeFi accessible even to inexperienced users. Furthermore, embedding DeFi functionality into existing distribution channels like wallets will provide seamless interaction, playing a crucial role in onboarding the next wave of users.
Which Phase of the Bull Market Are We In—and How Long Will It Last?
"We may currently be in the mid-phase of the bull market. As for when it ends, we need to consider the significance of Bitcoin ETF approvals," said Zeke, Investment Research Manager at YBB Capital. ETFs place Bitcoin under centralized regulatory frameworks, making trading legal and fully compliant. This enables broader financialization and derivative products. As more legitimate participants join, price volatility will decrease. Hence, we’re unlikely to see sudden 50% drops or steep crashes. Combined with weakening cyclical impacts from the halving, the market may shift from past sharp booms and busts to a prolonged, gradual bull run.
James Wo, founder and CEO of DFG, sees the current environment as the "phase of optimism" in the market cycle. Skeptics are starting to buy and hold crypto assets, while more institutions and governments express interest. With Trump returning to power, a friendlier regulatory climate for crypto is expected. Proposals for a U.S. Bitcoin strategic reserve will further boost confidence and interest in Bitcoin and the broader crypto industry.
"Predicting the end of the market cycle feels counterintuitive," James added. Expectations of a 2022-style crash are unlikely given how much the ecosystem has matured. Many institutions are now following MicroStrategy’s strategy of accumulating Bitcoin en masse, making an 80% market collapse improbable. There may be corrections, but a return to bear market lows is unlikely.
Nemo, Investment Director at Web3.com Ventures, believes Bitcoin has already completed at least half of its bull run. From a perspective of optimism and conviction, Bitcoin will not let anyone down. Its essence is resisting inflation and preserving wealth.
How Should Retail Investors Navigate Opportunities in This Bull Market?
Chris, co-founder of Web3Port, advises retail investors to focus on high-conviction sectors—particularly BTC, meme coins, and AI narratives—while cautiously approaching older altcoins lacking compelling new stories. He emphasizes riding market trends, understanding momentum, and following where attention flows. "Cycles are central—position early when the cycle begins, and exit before it fades."
Allan from Ryze Labs warns that bull markets are ironically when most people lose money. "Investors may earn unexpected gains early on, but then start using leverage and borrowed funds mid-cycle. One sharp correction wipes out all unrealized profits, turning gains into losses, forcing them to sell at the worst time." To avoid this, Allan recommends allocating only capital whose total loss wouldn’t affect daily life. Withdraw initial costs early so that remaining funds in the market are pure profit. Never keep adding principal or using leverage—a strategy that seems profitable but carries extreme risk. When volatility strikes, the consequences can be devastating.
Zeke from YBB Capital highlights hidden risks in the bull market: "The 2025 market will be more complex than previous years. Investment strategies need to be more conservative than before. Ironically, the higher the market climbs, the more dangerous it becomes. None of us can precisely predict market movements, so we must approach 2025 with greater humility." Investing is a discipline, he says. As crypto evolves toward greater maturity and professionalism, investors must cultivate inner resilience before seeking external knowledge. Maintaining a calm, robust mindset is essential—always prioritize risk management.
Dinghan, partner at Jsquare, urges retail investors to prioritize risk control. "While crypto offers significant return potential, volatility remains a critical concern." For passive investors, blue-chip assets like Bitcoin and Ethereum are typically safer choices. For active participants, security is paramount—use hardware wallets and trusted tools. Focus on high-quality, sustainably developed projects rather than chasing short-term fads. In any market, identifying assets that consistently outperform—and avoiding laggards—is crucial.
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