Over the past year, the crypto industry has attracted users on an exponential scale, with monthly active addresses tripling from 70 million in 2023 to over 220 million in 2024. With over 300 chains listed, the ecosystem It should be able to meet the needs of all types of users in a sustainable way. However, in this expanding landscape, most activity and liquidity is locked within multiple layers 2 of Ethereum.
In its current state, Ethereum is reminiscent of early 16th century Europe, which saw advancements like the printing press and advanced shipbuilding that improved resource management. Today, Ethereum’s burgeoning DeFi ecosystem is equipped with primitives such as lending and borrowing, staking and staking again. However, much like Europe’s challenges with scarce and overutilized resources, Ethereum faces obstacles in making other assets useful in its own home: its Layer 1.
Therefore, the current blockchain ecosystem remains frustratingly fragmented. While chain abstraction has been a trending narrative with many projects moving forward, solutions like intents typically involve sequencers that favor big players by completing orders across blockchains, leading to centralization. Furthermore, no additional utility is created for users as most solutions focus simply on exchanging assets.
Despite impressive technological foundations, we have created a landscape where digital assets are limited rather than empowered. Major blockchain resources, such as Ethereum, are underutilized and limited by rigid architectural boundaries.
For true interoperability to exist, in 2025, we must take a step back and re-approach blockchain modularity from a new perspective.
The illusion of modularity
The common analogy of blockchain to “Lego blocks” oversimplifies a complex technological landscape. Unlike uniform building blocks, blockchain components are intricate systems with specific dependencies and complex interoperability challenges.
Consider a practical scenario: moving an asset between different blockchain networks should be easy. However, current solutions, such as basic token exchanges, offer minimal functionality. Technology requires a more sophisticated and nuanced approach.
Emerging technologies are changing this narrative. General messaging alternatives and advances in transaction finality are enabling a more organic and unified ecosystem. The ultimate goal is not just to connect disparate parts, but to create an infrastructure where different networks can collaborate effortlessly.
2025: The year of usefulness and accessibility
Looking ahead to 2025, I anticipate a two-pronged approach to address current and future fragmentation issues. To engage users and build a sustainable user base, infrastructure must be integrated into the background so that users can focus on the application itself without getting caught up in the technology behind it.
Currently, users are unable to utilize their assets optimally due to complicated bridging solutions that disincentivize users from easily moving their assets across chains. Instead, we must provide users with an avenue to maximize their performance while contributing to the ecosystem. This can be achieved by giving token holders freedom to move their assets from one chain to another without bridges, through solutions such as buyback. As recovery expands beyond Ethereum by connecting multiple Layer 1 and Layer 2 networks, this is an area of growing interest for users.
Instead of fragmenting the ecosystem with new competing blockchains, projects will focus on improving and interconnecting existing infrastructure. This approach will breathe new life into currently dormant chains, driving activity and creating genuine value.
In addition to improvements to the underlying infrastructure, user experience will also take center stage. We will see applications that integrate blockchain functionality so seamlessly that users will interact with sophisticated technology without even recognizing its complexity. Infrastructure will become invisible: a powerful backend that complements fluid frontend experiences without technical friction.
Creating a global market
While 2024 marked significant industry acceptance, as evidenced by increased investment in assets like bitcoin, true adoption requires an inclusive vision. We should not limit ourselves to creating financial instruments, but rather create a global market where everything speaks to everything else, allowing each asset to reach its maximum potential.
The future of blockchain is not about individual chains competing for supremacy. It is about creating a fluid and collaborative infrastructure that allows users to access economic potential, building the future of how money and value can work.
