Crypto Tech in Review: 2024 Milestones and 2025 Predictions
2024 proved to be a pivotal year for blockchain technology, marked by significant advancements and setting the stage for future innovation. This review examines the key milestones, emerging trends, and what might be expected in the coming year.
1. 2024’s Top Crypto Tech Milestones
Ethereum’s Dencun Upgrade: Ethereum’s Cancun-Deneb (Dencun) upgrade was a major step forward designed to improve scalability and reduce data costs. This upgrade introduced proto-danksharding, a method aimed at lowering Layer-2 rollup fees by simplifying data availability and improving transaction throughput. This was designed to benefit developers and improve Ethereum’s position.
Solana’s Growth: Solana’s DeFi Total Value Locked (TVL) reached $9 billion, reflecting growth in its decentralized applications. This increase was supported by institutional adoption and significant integrations, including financial giants like Franklin Templeton and Société Générale using Solana for tokenized assets. Robinhood added SOL to its platform, and Cboe Global Markets filed for Solana-linked ETFs, showcasing confidence in Solana’s infrastructure.
Quantum Computing’s Potential Threat: Google’s progress in quantum computing raised concerns about potential threats to blockchain security, especially regarding Bitcoin’s encryption methods. Experts emphasized the need for quantum-resistant encryption to protect digital assets.
Layer-2 Adoption: Layer-2 solutions like Arbitrum, Optimism, and Base played crucial roles in addressing Ethereum’s scalability challenges. Arbitrum’s transaction volume surpassed 1 billion, driven by strong developer support, while Optimism expanded influence through its OP Stack technology. Base, incubated by Coinbase, gained traction through its extensive user base, with Franklin Templeton launching a tokenized treasury fund on the network.
DeFi Leaders Innovate: Developments included Grayscale Investments launching a fund for Aave, Uniswap Labs announcing Unichain, a decentralized Layer-2 blockchain built with Optimism’s OP Stack, and MakerDAO rebranding to Sky as part of its Endgame Plan, introducing new governance and stablecoins. All of these developments point toward continued innovation in the DeFi space.
2. Emerging Trends for 2025
- AI x Blockchain: Integration of artificial intelligence and blockchain, focused on improving verification, analytics, and smart contract automation. There is a significant focus on curtailing the negative side effects of AI.
- Regulated Crypto Hubs: Jurisdictions like Hong Kong, Dubai, and Singapore are establishing themselves as innovation centers, attracting both startups and institutional investors.
- Interoperability: Emphasis on cross-chain protocols for seamless asset transfers and collaboration between different blockchain ecosystems.
3. Developer Engagement in 2024
The Electric Capital Developer Report showed ongoing growth in blockchain development, with a 35% increase in active developers. Solana saw the largest influx of new developers, surpassing Ethereum, due to its low fees and fast transactions. The report made it clear that key players are investing seriously in growth, leading to more improvements in these systems.
4. What to Watch in 2025
- Ethereum’s Pectra Upgrade: A two-phase upgrade, Prague and Electra, designed to improve consensus and execution layers, enhance validator efficiency, and improve network security.
- Scaling Solutions: Driven by ZK-rollups and modular blockchains for improved user experience and scalability. Zero-knowledge proofs are set to be important for the future of blockchain.
- Decentralized Identity: Decentralized identity solutions will give users control over personal data, allowing for verification without relying on centralized authorities.
5. Final Thoughts
2024 was a year of considerable technical progress, setting the stage for growth in scalability, DeFi, and security. The developments have made for a transformative year ahead, with continued innovation and adoption of blockchain technologies.
