Encryption Industry Outlook and Market Trends

Industry Outlook

Research institutions' executives predict that the encryption industry will see several small-scale breakthroughs in 2025. These breakthroughs include an increase in institutional adoption, the introduction of more comprehensive legislative frameworks, and Bitcoin's potential to become a reserve asset. Some believe that it is not entirely impossible for Bitcoin to reach $500,000 by 2030.

Pension and endowment funds are actively engaging with the encryption field, and some portfolio managers have begun allocating up to 5% of their assets to encryption. It is expected that the approval processes for more institutions will be completed within 6 to 12 months. Additionally, sovereign wealth funds outside of the United States may increase their investments in encryption assets in the coming months.

Ethereum is regarded as "one of the most important open-source software projects," with a promising outlook for institutional adoption. In the private equity sector, decentralized finance, tokenization of physical assets, and artificial intelligence tokens may also attract institutional interest.

Market Dynamics

The recent rise in the encryption market is mainly driven by two factors: first, the lower-than-expected CPI data has temporarily eased inflation concerns; second, a certain political figure has stated that they will list cryptocurrency as a "national priority" and is open to supporting the reserves of cryptocurrencies established in the United States.

The market overall remains cautiously optimistic, with macroeconomic concerns still focused on inflation issues. Although the lower CPI data provides a temporary relief, investors are still closely monitoring signals that may indicate persistent inflationary pressures. Some analysts predict that further news regarding the potential establishment of a national Bitcoin reserve may intensify market volatility in the short term.

Regulatory Dynamics

Several senior officials of the U.S. Securities and Exchange Commission have recently resigned, including the Chief Legal Officer and General Counsel, the head of enforcement, and the head of accounting. These changes may impact the SEC's decision-making direction in the future.

Prospects for ETF Development

Analysts believe that the Litecoin ETF has met all the necessary conditions and is expected to be the first altcoin ETF approved in 2025. Given that regulators have commented on the relevant documents and consider Litecoin as a commodity, the reasons for withdrawing the application are not obvious.

However, the approval process for other cryptocurrency ETFs may be slower. Some analysts point out that, although the policy environment may improve, certain cryptocurrency ETFs may not be launched in the U.S. until 2026 due to the complexity of the review process.

Trends in the Gaming Industry

AI Agent technology is driving transformation in the gaming industry. With the help of high-performance blockchain platforms, the production speed of AI Agents has significantly increased, resulting in a surge of personalized AI Agents in the short term. Multimodal AI projects are rising, facilitating interaction and collaboration among Agents.

The development of the Agentic game engine will make interactions between players and dynamic NPCs richer. There are already successful cases in the market that allow players to interact deeply with AI. The transformation of open-source game engines to Web3 has achieved significant growth, providing developers with low-threshold, high-efficiency solutions.

Agentic Metaverse/Game is expected to address the shortage of early players in Web3, accelerate the development of new games, promote the large-scale application of related technologies, and lay the foundation for the future development of the industry.

Focus on Hot Projects

AGiXT is a dynamic AI agent automation platform that seamlessly orchestrates command management and complex task execution across different AI providers. This project combines adaptive memory, intelligent features, and a multifunctional plugin system to deliver efficient and comprehensive AI solutions.

The project started two years ago, written in Python. Based on the GitHub like history, AGiXT was launched as early as the beginning of last year and has been steadily growing since July 2023, demonstrating the results of long-term investment.

Project developers continue to contribute in the field of AI open source, submitting code 8000 times on GitHub last year. The token economic model design includes a linear release mechanism to ensure long-term development.

The project's market value surpassed 94 million USD within 4 hours of its launch, with a trading volume of 128 million USD, indicating a high level of market attention.