How Web3 Consumer Apps Will Finally Break Out in 2025: 6 Predictions

As an analyst who has been closely observing the evolution of Web3 for over a decade now, I can confidently say that 2025 is shaping up to be a pivotal year for this revolutionary technology. The challenges we’ve faced thus far have been formidable, but they pale in comparison to the potential that lies ahead.

Web3 has faced challenges in gaining widespread acceptance among the general public. It hasn’t yet reached the level of cultural significance that other innovative technologies currently enjoy. Cryptocurrency is our most popular product as an industry, but even its staunchest supporters acknowledge that coins alone will not achieve the consumer breakthrough we have been striving for over a decade.

Non-fungible tokens (NFTs), web3 games, social apps, and various forms of decentralized art, music, film, and TV have yet to reach audiences beyond the cryptocurrency community, with many projects failing to gain traction even within that niche. Difficulties include complicated user experiences, speculative economic structures, and technical hurdles that deter mainstream users. In 2024, the industry faced ongoing challenges such as fragmented liquidity, friction in user experience, and a reputation for focusing on financial speculation rather than consumer enjoyment, which did not resonate with a less active crypto market.

In the year 2025, we anticipate widespread acceptance of Web3 due to a surge in user-friendly apps developed within highly scalable platforms that effectively reach larger audiences. Critical factors contributing to this include resolving the issue of liquidity fragmentation, obtaining regulatory approval under a pro-crypto government, advancing blockchain infrastructure, and integrating advanced AI technologies. The gaming sector within Web3 is poised for transformation, moving from a specialized trial phase into an influential element of the gaming industry. This shift offers unique player ownership and economic prospects that could pull the gaming market out of its downturn and provide novel experiences to gamers. Here’s what we can look forward to in terms of crypto consumer innovations in 2025:

1. AI in gaming and other interactive environments

Though discussions abound about AI utilizing cryptocurrency networks for transactions, the most tangible and prevalent applications have primarily been in gaming. This development was not widely known to the public as a significant portion of AI was being employed behind-the-scenes in the creation of game art or even the development of the games themselves. The gaming industry, like any other entertainment sector, tends to focus on user experiences rather than the technology that powers it.

As a crypto investor immersed in the world of web3 games, I can confidently say that the integration of AI is revolutionizing our landscape, especially with the advent of AI agents on the blockchain for non-player characters (NPCs). The rapid advancement in this technology has made it accessible even to smaller developer studios. In fact, a substantial number of Saga games have already implemented these AI agents, and it wouldn’t surprise me if most games follow suit by next year.

2. Gaming maturity and established titles in Web3

2025 marks a pivotal shift for established game studios diving into the Web3 realm. Instead of viewing blockchain as an optional addition, they’re embedding it as the backbone, empowering players with ownership and fostering decentralized economies. We’ve moved past the trial-and-error phase. Now, we’re stepping into a time where quality, not just innovation, is paramount. The gaming industry, grappling with issues like scarcity of original content and exorbitant user acquisition costs over the last 1.5 years, seems to find solace in this crypto-native environment. It offers a fertile ground for creative exploration and extended channels for community building, which could potentially revitalize the gaming sector. In essence, Web3 gaming might just be the savior our industry needed.

3. Meme and degen asset creation

Memes and unique digital assets play a crucial role in shaping the culture of the decentralized web, or Web3. These appear as game launches, community initiatives, and trending moments. This is how the ethos of cryptocurrency spreads – through creativity at the fringes. While conventional finance finds it hard to grasp this trend, these assets foster engagement within communities and generate genuine experiences that define Web3. It’s not surprising that when an AI-powered platform launched its first layer-1 on Saga for a social app, its inaugural move was to introduce a meme-based token.

4. Sophisticated in-game marketplaces

The upcoming game marketplaces will function independently like autonomous economies. Players will serve as both suppliers and consumers, utilizing decentralized finance (DeFi) systems to generate value. This empowers gaming communities with true economic control. Blending DeFi concepts into gaming opens up unprecedented avenues for player interaction and loyalty that conventional game studios struggle to replicate.

5. Advancements in liquidity solutions

The solution to fragmentation lies in shared liquidity infrastructure. Connected layers between decentralized applications create fluid movement of assets. This enables true composability across gaming, marketplaces and DeFi. The projects that solve this will unlock the next phase of Web3 growth by removing the friction that currently plagues cross-chain interactions.

A powerful mix lies in a Web3 asset that serves social purposes, particularly appealing to Generation Z and Alpha. For these generations, blending economic and social interaction isn’t unusual but rather a highly enjoyed form of entertainment. The concept of assigning value to an asset based on community agreement is the foundation of web3, and the same social-focused (SocialFi) force on open liquidity networks will accelerate industry-wide acceptance.

6. Catalysts from the post-election environment

Trump’s comeback alters the regulatory terrain of cryptocurrencies. The new leadership at the Securities and Exchange Commission (SEC) is expected to alter policy perspectives. These adjustments could foster the adoption of Web3 games by creating a more crypto-accommodating regulatory environment. This environment, marked by fewer bureaucratic hurdles and a business-focused approach towards digital assets, may result in less stringent SEC enforcement, more flexible digital asset classifications, and possibly the creation of regulatory sandboxes or tax incentives for emerging blockchain gaming companies.

By 2025, the extent to which mainstream adoption occurs through gaming, finance, and social platforms will shape the trajectory of cryptocurrencies. Merely speculating won’t be enough to power another market cycle. For widespread acceptance, we must address issues that matter to consumers outside our current user base. The gaming sector, with its massive user base and hunger for novelty, presents our most promising route to achieving such scale. I’m optimistic that 2025 will mark a significant turning point for all consumer applications, including Web3 gaming, thereby influencing the crypto industry as a whole.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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2024-12-16 18:20