Ethereum faced challenges in 2024, with financial disappointment despite technological success.
Activity on Layer 2 networks in the ecosystem skyrocketed after the Dencun upgrade, setting the stage for further development. Emerging sectors are changing how we interact with blockchain technology. Here are five that may drive mainstream adoption and unlock new possibilities in 2025.
Layer-2 scaling
Layer-2 (L2) solutions have been one of the most significant developments for Ethereum. The Total Value Locked (TVL) of Ethereum scaling solutions exceeds $15.5 billion, with platforms like Optimism, Base, and Arbitrum reshaping how users interact with decentralized applications (dApps). These solutions address Ethereum’s longstanding challenges of high fees and network congestion, potentially influencing the ETH to USD price, available on finance sites such as Bloomberg and Binance.
Layer-2 transactions rose fourfold between March and November last year, but fees collected by Ethereum fell 87% in that time, per Bloomberg. The shift showed how Layer 2 networks were successfully scaling Ethereum’s capabilities.
Coinbase’s layer-2 network, Base, was designed to resolve the problem of scalability. It was created to expand the use of DeFi and make blockchain tech more accessible. Base uses optimistic rollups (a scaling solution processing transactions off the main blockchain but maintaining Ethereum’s security guarantees); by doing so, it reduces transaction costs and cuts processing times.
However, with the advancements came challenges. The recent Dencan upgrade raised the target number of blobs per block from 3 to 6, doubling the data throughput capacity for Layer-2 networks. But forecasts suggested that rapid L2 expansion could outpace available bandwidth. The success of Layer-2 solutions may depend on Ethereum’s ability to scale its underlying infrastructure to support continued growth.
Real World Asset tokenization
Real World Asset (RWA) tokenization has evolved from its experimental early stages to being embraced institutionally. By December 2024, the tokenized RWA market (excluding stablecoins) grew approximately 85% year-over-year, reaching $15.2 billion (per Investax). The market spans diverse asset classes including private credit, commodities, and real estate.
Financial giants like BlackRock and JPMorgan have led institutional adoption. In January, the CEO of BlackRock, Larry Fink, urged the SEC to quickly approve asset tokenization. As CoinTelegraph’s Marcel Pechman explained, tokenizing real-world assets would mean direct ownership and pricing data could be embedded within a token’s native structure. This would reduce the need for external oracles (devices/entities that allow smart contracts to interact with external data sources). This institutional backing combined with technical advantages means RWA could create a bridge between traditional finance and blockchain technology.
Ondo Finance leads this space by tokenizing US Treasuries – processing over $2 billion in tokenized Treasury transactions in 2024. The platform offers yield-bearing stablecoin alternatives backed by government securities. Risk-averse investors who may otherwise avoid crypto and blockchain are often attracted by the more stable returns.
Other notable platforms include Centrifuge, focusing on tokenizing invoices and loans, and Securitize, one of the largest tokenization platforms, which has brought $3.9 billion worth of real world assets onto public blockchains.
AI and blockchain
The convergence of artificial intelligence (AI) and blockchain technology is another promising sector. Blockchain projects that optimize smart contracts with AI report a 300% increase in transaction efficiency (per changehero.io).
The AI agent token sector has gained significant traction with projects like ai16z. The ai16z token serves as a governance and utility token; holders can participate in decision-making processes. The token surged past $2.3 in January 2025 but soon fell back below the $1 mark.
Key use cases include intelligent investment advisors in DeFi, automated smart contract optimization, and decentralized AI computation.
Gaming and NFTs
Projections suggest the Web3 gaming market may reach $614 billion by 2030, providing a strong foundation for NFT integration.
The sector has matured, with traditional gaming studios exploring blockchain integration. Companies like Square Enix and Ubisoft have announced plans to develop Web3 games, lending credibility to the space and potentially bringing millions of players into the Web3 ecosystem.
Immutable X and Polygon are hubs for NFT games due to their low fees and developer support. These platforms enable true ownership of in-game assets; players can trade items across different games and platforms.
Gaming projects include Axie Infinity, which continues to evolve with new features, and The Sandbox, where players can create assets, trade them as NFTs, and purchase virtual land (LAND NFTs). The platform allows for content creation without coding knowledge.
But there are challenges in this sector too. Top gaming tokens have seen a decrease in price in 2025 year-to-date. Despite price volatility, developers continue building sustainable play-to-earn models that focus on long-term utility rather than speculative returns.
The integration extends beyond gaming to mainstream applications. Ticketmaster is using NFT tickets for events; Starbucks has a loyalty program using NFT stamps; and luxury brands issue NFT authenticities for designer items.
Decentralized Physical Infrastructure Networks
Decentralized Physical Infrastructure Networks (DePIN) offer a new way of building and maintaining physical infrastructure through blockchain incentives. The sector encompasses decentralized storage, computer networks, and wireless infrastructure. DePIN projects are attracting significant investment because they offer tangible utility.
Filecoin launched its Filecoin Virtual Machine (FVM) last year, which opened the network’s economy to new use cases. Filecoin’s TVL surpassed $200 million.
Render Network has changed the GPU rendering market by connecting creators in need of rendering services with providers who have idle GPU resources. The platform democratizes access to high-performance rendering capabilities for 3D graphics, animations, and virtual reality (VR) content.
The Graph helps developers create and publish open APIs, known as subgraphs, essential for querying blockchain data across dApps.
