In the ever-evolving crypto industry, the year 2025 promises to bring about significant changes, not only in terms of prices and regulations, but also with regards to underlying technologies that power some of the most favored tools in the industry. As part of our annual Crypto Crystal Ball series, we’re delving into the narratives that are poised to shape the coming year and their potential impact on users.
Following a review of Donald Trump’s potential political investment in top crypto industry priorities, our focus is now on an upcoming tech upgrade to Ethereum, which may finally pave the way for mainstream crypto adoption at a consumer level.
The crypto industry has been anticipating mass adoption for several years. However, on-chain products and experiences have consistently failed to attract as many users as their Web2 counterparts. An upcoming update to Ethereum, scheduled for February, could potentially change this by making on-chain apps significantly simpler for everyday consumers.
David Silverman, senior vice president of strategic business initiatives at Ethereum scaling project Polygon, shared with Decrypt that during the 2021 crypto bull market, countless people were intrigued by on-chain apps, but the technology was simply not ready. With the impending 2025 bull cycle, Silverman believes that crypto products will finally be up to the mark.
“If we do see a mass inflow of interest this next cycle, we will be able to show a proper example of what we think the Web3 future is,” Silverman said, “as opposed to just glimmers of hope.”
So, why the optimism? Developers believe that Ethereum’s forthcoming Pectra upgrade will dismantle barriers that have previously made on-chain apps challenging. Gas fees and special wallets for navigating smart contracts will be a thing of the past. Instead, users will be able to sign transactions with FaceID and even use some on-chain apps without having to sign any transactions at all.
One significant innovation in Pectra will enable basic wallets, issued by mainstream companies like Coinbase and MetaMask, to have smart wallet functionality. Starting February, users of these wallets will have the ability to pay gas fees on Ethereum and all L2s with any cryptocurrency of their choice, including stablecoins. Additionally, they will be able to sign for transactions with universal tools like Apple’s FaceID and TouchID.
Mark Tyneway, the co-founder of Ethereum layer-2 network Optimism, told Decrypt that these streamlined signing mechanisms will enable “much more complicated on-chain interactions with a single click.”
In a development previously thought impossible, session keys will soon enable regular crypto users to navigate a site or app for several hours while securely completing numerous on-chain interactions—all without the user being aware of what’s happening in the backend.
“Imagine having the entire Instagram experience on-chain without it feeling like it,” Tyneway told Decrypt. “It’s going to unlock a massive wave of innovation.”
Polygon’s Silverman believes that Pectra will soon enable numerous crypto app developers to create seamless experiences where gas fees are sponsored and transaction signings are abstracted away. The result? Products that resemble leading Web2 apps, but offer unique Web3 advantages.
“Crypto UX is about to level up,” Silverman said. “This is the unlock.”
