3 Defining Crypto Narratives for 2025: Layer-2, RWAs & DePINs Explained

2025-05-15

Key Takeaways

  • Layer-2 Scaling slashes costs: Rollups drive gas fees under $1 and boost throughput above 2,000 TPS, solving Ethereum’s pre-2025 congestion.
  • RWAs democratize high-value assets: On-chain tokenization opens trillions in real estate, bonds, and art to retail investors via fractional ownership.
  • DePIN networks crowdsource real-world infrastructure: From Helium hotspots to decentralized storage and edge compute, community-run hardware scales services organically.
  • The Web3 trifecta ignites mainstream use: Together, Layer-2, RWAs, and DePINs eliminate cost, liquidity, and infrastructure barriers—paving the way for wide-scale adoption in H2 2025.

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Before 2025, users struggled with high fees and fragmented apps—key pain points that Layer 2 scaling 2025 solutions now alleviate. Ethereum’s gas wars often spiked to $20–50 per transaction, discouraging mainstream use. DeFi protocols on Layer-1 choked under demand, highlighting the need for blockchain scalability solutions. Meanwhile, NFT hype faded for lack of lasting utility, and traditional finance remained siloed from digital markets. The Web3 H2 2025 forecast centers on three narratives that collectively address these issues:

web3-H2-2025-forecast-table

Table of Contents

Why Web3 Needed an Upgrade

What Does Layer-2 Scaling Fix?

Why Now for RWAs?

What Are DePIN Networks?


Why Web3 Needed an Upgrade

  • -Layer-2 Scaling: TVL here reflects the USD value of assets deposited in L2 smart contracts (e.g., DeFi protocols, bridges).
  • -RWAs: TVL measures the on-chain value of tokenized loans or real-world collateral managed by each protocol.
  • -DePIN: Because DePIN networks don’t use TVL in the traditional DeFi sense, we’ve shown market cap for Filecoin (the largest DePIN token) and staked or locked values for Livepeer and Arweave to approximate the on-chain “locked” economic activity within their networks.

Together, these trends form the Web3 trifecta, laying the groundwork for low-fee, interoperable blockchain experiences in late 2025.

web3-trifecta-l2s-rwas-depins

These metrics spotlight the relative scale at which each narrative’s flagship projects operate as of mid-2025—and underscore why they’re at the forefront of the Web3 transformation in H2 2025.


What Does Layer-2 Scaling Fix?

Layer-2 Scaling: Data Snapshot

layer-2-scaling-data-snapshot

Data illustrates the explosive growth in transaction volume, cost reduction, network capacity, and capital inflows that Layer-2 rollups have achieved by mid-2025.

What Are Layer-2 Rollups and Why “Layer 2 Scaling 2025” Matters?

Layer 2 scaling 2025 encompasses two primary approaches—optimistic rollups and zero-knowledge (ZK) rollups—that operate “off-chain” to relieve Ethereum’s mainnet from processing every single transaction.

  • -Optimistic rollups, for example, Arbitrum (ARB) and Optimism (OP), assume that batched transactions are valid by default, posting only minimal data on Ethereum and using fraud proofs to challenge any malicious activity. This design drastically reduces on-chain gas consumption while preserving security.
  • -Zero-Knowledge (ZK) rollups, such as zkSync Era (ZK), StarkNet, and Polygon zkEVM (POL), bundle hundreds or thousands of transactions into a single cryptographic proof. When submitted on Ethereum, this succinct proof verifies correctness without revealing each transaction’s details, enabling both scalability and privacy.

In late 2024, the EIP-4844 proto-danksharding upgrade introduced a new “blob” transaction type that makes it dramatically cheaper for Layer-2 networks to post data on-chain. This innovation unlocked a surge in usage—by mid-2025, combined Layer-2 rollups were handling over 12 million daily transactions, compared to roughly 1 million on Ethereum Layer-1. As a result, average gas fees plunged from upwards of $30 per transaction to under $1, marking a pivotal milestone in the Web3 H2 2025 forecast.

ethereum-l2s

Image Credit: COIN98

L2 Key Metrics to Watch

  • -12 million+ daily L2 transactions vs. ~1 million on Layer-1, illustrating the massive shift to rollups.
  • -$220 million in venture funding over the past 18 months—most notably Arbitrum (ARB)’s $120 million Series B and Optimism (OP)’s $100 million strategic round—underscoring investor confidence in blockchain scalability solutions.
  • -$10 billion+ TVL across DeFi protocols on major L2 networks, demonstrating real economic activity migrating off Ethereum’s congested mainnet.
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Image Credit: Defillama

What Layer-2 Fixes

  • -High Fees: By batching transactions off-chain, average costs drop from tens of dollars to less than $1, making micro-payments and gaming viable.
  • -Scalability: Collective throughput across rollups now exceeds 2,000 transactions per second (TPS), up from Ethereum’s ~15 TPS, enabling high-volume applications.
  • -Interoperability: Innovations like shared sequencers (Optimism’s Superchain) and standardized cross-rollup bridges reduce fragmentation by allowing assets and data to move seamlessly between different Layer-2 networks.

Despite these advances, two challenges remain: bridging security (cross-chain bridges can introduce exploit vectors) and sequencer centralization (some rollups rely on a single operator to order transactions). Ongoing efforts to develop decentralized sequencer committees, implement watch-tower services, and establish unified scalability standards will be crucial. As these solutions mature, Layer-2 rollups are set to become the backbone rails of Late-2025 Web3, delivering on their promise of*


Why Now for RWAs?

What Is Web3 Real-World Asset Tokenization?

Web3 real-world asset tokenization refers to the process of converting tangible assets—such as commercial real estate, trade receivables, fine art, and even rare collectibles—into digital tokens on a blockchain. Each token represents a fractional ownership share of the underlying asset, allowing investors to buy, sell, or trade pieces of high-value items that were previously accessible only to institutions or high-net-worth individuals. By leveraging fractional ownership on-chain, tokenization democratizes traditionally illiquid markets, enabling anyone with an internet connection to participate in asset classes that once required six- or seven-figure minimums.

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Image Credit: Medium

RWA Key Metrics to Watch

  • – >$10 billion in RWA issuance on Layer-2 networks by mid-2025, highlighting rapid growth as platforms leverage blockchain scalability solutions for large-scale rollouts.
  • – 20+ institutional pilot programs, including Franklin Templeton’s tokenized money market fund on an Optimism rollup and Societe Générale’s experimental bond issuance on Ethereum’s Polygon zkEVM (POL).
  • – $150 billion addressable market for tokenized real estate alone, according to recent industry estimates, with corporate and rental properties leading the way.

These metrics underscore a significant shift: asset managers and traditional financial institutions are moving from proofs-of-concept to live token issuance, signaling that Web3 real-world asset tokenization is transitioning from niche experiments to production-ready deployments.

What RWA Fixes

Access: By reducing minimum investment thresholds from millions to a few hundred dollars, tokenized assets open high-value markets to a broad range of retail and accredited investors. For example, a $10 million office tower can be divided into 100,000 tokens, each costing as little as $100.

Efficiency: On-chain compliance features—such as embedded KYC/AML checks and programmable transfer restrictions—automate regulatory processes that traditionally take days or weeks. Smart contracts handle dividend payouts and voting rights transparently and instantly, eliminating manual reconciliation.

Transparency: Immutable blockchain ledgers record every token transfer and ownership change, reducing counterparty risk and simplifying audits. Investors can verify asset provenance, compliance status, and transaction history in real time.

RWA Infrastructure & Regulatory Tailwinds

Platforms like Tokeny, Securitize, and Fnality have built robust compliance rails—integrating identity verification, token minting, and custodial services—to support institutional-grade token offerings. Meanwhile, PayFi stablecoins (e.g., USDP, USDY) are emerging as reliable settlement rails, enabling near-instant, low-cost transfers of tokenized cash flows across chains.

Regulatory clarity has arrived just in time: in Q1 2025, Singapore’s Monetary Authority issued comprehensive “Digital Asset Tokenization Guidelines,” and the EU’s Markets in Crypto-Assets (MiCA) framework came into force, defining tokenized securities and standardizing investor protections. These policies have unlocked previously constrained capital flows, paving the way for major banks and asset managers to allocate budgets toward blockchain-based issuance.

As the Web3 H2 2025 forecast comes to fruition, expect real-world asset tokenization to serve as the critical bridge between TradFi and DeFi—bringing trillions of dollars of underutilized assets on-chain and forging a new era of accessible, transparent, and efficient financial markets.


What Are DePIN Networks?

What Are DePIN Use Cases and the “Uber for Infrastructure” Concept?

Decentralized Physical Infrastructure Networks (DePINs) leverage blockchain coordination and token incentives to crowdsource real-world hardware and services—much like Uber crowdsources rides. By rewarding individuals for deploying and operating devices, DePIN projects create open, permissionless infrastructure that scales through community participation rather than centralized capital expenditure.

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Image Credit: Onchain.org

Key DePIN use cases include:

  • – DeWi (decentralized wireless): Networks like Helium (HNT) incentivize users to install LoRaWAN and 5G hotspots. Each hotspot contributes low-power IoT coverage or mobile data, earning HNT tokens based on data throughput and network demand.
  • – Distributed storage: Protocols such as Filecoin (FIL) and Arweave (AR) allow node operators to rent out disk space for on-chain data persistence. Storage providers stake tokens and earn rewards in FIL or AR for reliably storing encrypted files, creating a decentralized alternative to AWS or Google Cloud.
  • – Edge compute: Services like the Render Network (RNDR) and Akash Network (AKT) connect individuals with spare GPU or CPU capacity to clients needing rendering, machine learning, or scientific compute. Contributors earn tokens proportional to compute cycles provided.
  • – Mapping & sensors:Hivemapper uses crowdsourced dashcams to capture street-level imagery. Contributors upload data and receive HONEY tokens, powering a continuously updated global map that rivals proprietary mapping services.

This model transforms underutilized consumer resources—home internet connections, empty server racks, parked cars—into productive network nodes, all coordinated on-chain and governed by token-holder DAOs.

DePIN Key Metrics to Watch

  • – 350,000+ active hotspots on Helium (HNT) globally, delivering millions of IoT messages daily.
  • – $150 million in venture capital funneled into DePIN startups during 2024, led by a16z and Multicoin Capital.
  • – 250 petabytes+ of data storage capacity committed on Filecoin (FIL) as of Q2 2025, showing rapid growth in decentralized storage.

These figures illustrate both the scale of community involvement and investor confidence in decentralized wireless networks and other DePIN use cases.

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Image Credit: DePIN.Ninja

What DePIN Fixes

– Capital Efficiency: By tapping into consumers’ existing devices—Wi-Fi routers, GPUs, storage drives—DePINs avoid costly infrastructure rollouts, mobilizing idle resources into productive services.

– Scalability: As more participants join, networks organically expand coverage and capacity without centralized bottlenecks or fixed budgets.

– Community Ownership: Token-based governance aligns incentives; participants vote on protocol upgrades, fee structures, and resource allocation, ensuring decentralized control.

DePIN Challenges & Outlook

Despite their promise, DePINs face significant hurdles:

  • – Regulatory Complexity: Wireless projects require telecom spectrum licenses, and data-intensive networks must comply with privacy regulations like GDPR.
  • – Demand–Supply Imbalance: Early incentive programs can outpace real usage—many hotspots remain underutilized without a robust base of IoT devices or clients.
  • – Tokenomic Sustainability: Designing reward models that transition from high bootstrap incentives to balanced, usage-driven payouts is critical to avoid inflationary crashes.

To succeed, DePINs must forge enterprise partnerships (e.g., IoT hardware manufacturers, telecom operators) and refine token economics for long-term viability. Nonetheless, the Web3 H2 2025 forecast positions DePIN networks as a transformative force—demonstrating that community-owned infrastructure can be both efficient and resilient, and laying the groundwork for a truly decentralized Internet of Things, storage, and compute ecosystem.


Final Thoughts

By late 2025, Layer-2 scaling 2025, Web3 real-world asset tokenization, and DePIN use cases will collectively eliminate Web3’s cost, liquidity, and infrastructure bottlenecks. This Web3 H2 2025 forecast heralds an era of low-fee, interoperable, and community-owned blockchain services. Ready to dive in? Share your thoughts on Twitter/X!


FAQs

Q1: What is Layer-2 scaling 2025?

Layer-2 scaling in 2025 refers to rollup solutions—optimistic and ZK—that batch transactions off-chain to reduce fees and boost Ethereum (ETH) throughput.

Q2: What is Web3 real-world asset tokenization?

It’s the process of converting physical assets (real estate, invoices) into fractional, on-chain tokens, enhancing liquidity and transparency.

Q3: What are DePIN use cases?

DePIN use cases include decentralized wireless (HNT price), storage (FIL price), edge compute (RNDR price), and mapping (Hivemapper), all crowdsourcing hardware via tokens.

Q4: How do these narratives fit into the Web3 H2 2025 forecast?

They address pre-2025 pain points—high gas fees, siloed liquidity, and costly infrastructure—paving the way for mainstream blockchain adoption.

Q5: How can I get involved?

Build on L2 testnets, pilot RWA issuances on compliance platforms, or host a DePIN node—many projects offer grants and developer tools.


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