In this episode, Mike and Nick discuss three major trends they expect to shape crypto in 2025: the inevitable scaling challenges facing monolithic L1s like Solana and Ethereum, the expansion of rehypothecation across DeFi protocols and bridges, and massive growth in stablecoin adoption driven by regulatory tailwinds and institutional issuers. They explore technical constraints around L1 scaling, analyze the business dynamics pushing protocols toward rehypothecation, and examine why stablecoin market cap could exceed $450B. The conversation also covers complementary predictions around ZK proofs, TEEs, and the American crypto renaissance. Thanks for tuning in and happy holidays!

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Timestamps:

(00:00) Introduction

(01:48) Solana & Eth Scale Fails

(07:25) American Crypto Renaissance

(11:28) Institutions Launching Chains

(19:58) Stablecoin Marketcap Exceeds $450B

(24:30) 2025 is zk Year

(29:24) TEE Growth

(39:04) Fee Switches, Rehypotheticating Assets

(45:23) Celestia 20mbps Throughput

(50:26) AI & Crypto Bubble

(1:00:23) New Media Models

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Disclaimer

Expansion was kickstarted by a grant from the Celestia Foundation.

Nothing said on Expansion is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Rex, Jon, and our guests may hold positions in the companies, funds, or projects discussed.