Top Web3 Trends to Watch in 2024 for 2025 Success

2024 was a hell of a decentralized blast into the Web3 stratosphere. Read on to find out more about the 2024 key trends that are propelling Web3 towards mass adoption by improving its UX, functional utility, fun factor, financial appeal, Web2 integration and physical connectivity.

2024 Web3 Trend #1: Chain Abstraction

Right from the get-go in 2024, user complexity was identified as the biggest barrier to Web3 mass adoption.

*Wallet Usage Industry Data (Source:* *WalletConnect*)

The key role of chain abstraction in improving Web3 UX by simplifying blockchain interactions to make decentralized applications (dApps) more accessible resulted in the technology racking up increasingly huge chunks of mindshare as 2024 progressed.

*Chain Abstraction Mindshare (Source:* *Kaito.AI*)

Use Cases of Chain Abstraction

Particle Network's UniversalX, Magic Labs’ Universal Passport and XION’s Walletless L1 blockchain.

2024 Web3 Trend #2: AI Agents

AI agents are software programs designed to perform tasks autonomously or semi-autonomously by leveraging artificial intelligence (AI) techniques. The critical role of AI agents in supporting Web3's interaction layers has resulted in the skyrocketing market statistics of these agents in terms of number of creations and revenue per day towards the end of 2024.

*Number of Creations and Revenue per Day of AI Agents from January to December 2024 (Source:* *VanEck*)

For traders, AI agents elevate the crypto trading experience by automating, optimizing, and personalizing the trading processes. AI agents utilize machine learning and advanced algorithms to identify patterns and predict price movements. Crypto arbitrageurs can use AI agents to scan multiple exchanges for price discrepancies and automatically execute trades to swiftly capitalize on arbitrage opportunities. Beyond trading and DeFi, AI agents deliver personalized experiences by retrieving user data from social media and websites to build digital personalities and generate personalized content.

Use Cases of AI Agents

Coinbase's AgentKit allows developers to build AI agents i.e. Based Agents that can interact in an autonomous manner with blockchain networks.¹ For users, Coinbase’s Based Agents enable the automation of on-chain operations including complex smart contract interactions such as trading, swapping and staking.² After the introduction of Based Agents at the end of October 2024, Coinbase’s transaction volume recorded a month-on-month increase of 15% in November 2024.

*Coinbase’s Weekly Transactions (Source:* *Dune*)

Beyond trading and DeFi, AI agents also have use cases in other domains.

Data Retrieval

Griffain is an invite-only platform that can perform on-chain actions and search for information through predefined actions including retrieval of social media and website data as well as generate images.³

Digital Personalities

Eliza is a robust multi-agent simulation framework built for creating, deploying, and managing autonomous AI agents across various platforms while ensuring consistent personalities and knowledge depth.⁴

Personalized Content

Virtuals Protocol is a co-ownership layer that supports the tokenization and co-ownership of AI agents to support their applications across platforms like Roblox, Telegram, and TikTok for improved user engagements through personalized content.⁵

2024 Web3 Trend #3: Memecoins

In 2024, memecoins trading volume grew by 979% from Jan 1 to Dec 1.⁶

*Memecoins Trading Volume in 2023 and 2024 (Source:* *Dune Analytics*)

The rise of memecoins prompted Mahmudov to come up with the supercycle theory which described the memecoin market as being in its infancy and may one day surpass the $1 trillion market cap.⁷

This cycle’s main narrative is Memecoins.

To the majority this still sounds crazy.

To those paying attention, this is obvious. pic.twitter.com/X0Vbodv9Pf
— Murad 💹🧲 (@MustStopMurad) October 28, 2024

Memecoins are cryptocurrencies created primarily as a joke or cultural phenomenon rather than as a utility or serious financial instrument. Despite their casual origins, memecoins have gained significant traction and recognition in the cryptocurrency market thanks to strong community backing and viral marketing. For example, Dogecoin (DOGE) gained immense value due to widespread social media support and endorsements by influencers like Elon Musk.

*DOGE’s Trading Volume in 2024 (Source:* *CoinMarketCap*)

The prime example of memecoin’s liquid community is Pump.fun whose alumni are taking the degen world by storm, led by the god-tier rise of Goatseus Maximus (GOAT). Born from an AI experiment gone right, GOAT hit a jaw-dropping $1 billion market cap on 12 November 2024.⁸ GOAT is powered by Solana which along with Base and Ethereum are the top blockchains for AI agent tokens.

*Top Chains by AI Agent Sector Market Capitalization and Number of Tokens (Source:* *Solana Daily*)

Leading the AI revolution on Base is Degen (DEGEN), a meme-inspired reward token designed for Farcaster users that has fueled the establishment of the Degen chain, an innovative Layer 3 (L3) built on Base.⁹ Farcaster is also ground zero for Clanker which is a Base-based memecoin launchpad that is powered by AI agents.¹⁰ The rising prominence of Base-based AI agent tokens may be one of the key factors in Base’s financial performance as the blockchain with the highest net inflow over the past three months.

*Top Blockchains by Net Flows (Source:* *Artemis*)

Use Cases of Memecoin Launchpads

Leveraging its first mover advantage, Pump.fun is leading by a mile in terms of number of tokens deployed and revenue followed by Sun.pump and Moonshot but each has their respective unique selling points (USPs).

*Tokens Deployed by Top Memecoin Launchpads from May to December 2024 (Source:* *Dune*)

2024 Web3 Trend #4: Restaking

*Specifications of Top Memecoin Launchpads (Source:* *Dune Analytics)*

As of December 2024, the restaking market's TVL of $25 billion constitutes about 20% of the DeFi's market total TVL of $128 billion.¹¹ 20% represents a 10 times percentage increase because at the start of 2024, the restaking market TVL was $1.3 billion which is only about 2% of the DeFi's market TVL of $54.1 billion at the time.¹² While EigenLayer may be the top staking platform with its TVL of $17 billion, the restaking platform with the second highest TVL i.e. Babylon is generating all the buzz with its BTC restaking services in the wake of BTC's post-elections upward swing.

*Babylon Mindshare (Source:* *Kaito.AI*)

The increasing prominence of restaking led to its combination with liquid staking resulting in the birth of liquid restaking tokens (LRTs) whose combined market capitalization of $14 billion constitutes about 10% of DeFi tokens' market capitalization of $130 billion.¹³

*EigenLayer’s LRT Dynamics (Source:* *Dune Analytics*)

Use Cases of Restaking Platforms

EigenLayer, Babylon and Solayer are respectively the top restaking platforms for ETH, BTC and SOL tokens.

2024 Web3 Trend #5: Mini-Apps

Unlike Web2, the decentralized nature of Web3 eliminates the risk of users being locked into walled gardens or having their data exploited by platform operators. For users, Web3’s shift towards decentralization is a win-win, providing the convenience of Web2 platforms while preserving users’ control over their data and assets. Web3 combines convenience and control through mini-apps which are lightweight dApps that are easy to deploy and often embedded into existing platforms or wallets for seamless user onboarding.

Use Cases of Mini-Apps

The pioneering mini-apps are Telegram Mini-Apps (TMAs) which allow developers to integrate Web3 functions such as GameFi, DeFi and SocialFi activities into Telegram Messenger.¹⁴ Following a similar development model to TMAs is Line NEXT's Dapp Portal which is slated to be launched in the first quarter (Q1) of 2025.¹⁵ The Portal allows users to explore, download, and seamlessly use Line NEXT Mini Dapps directly within LINE Messenger and earn rewards for embracing the Web3 lifestyle through gaming and lifestyle Mini Dapps.

*LINE NEXT’s Mini Dapp Benefits (Source:* *DOSI*)

2024 Web3 Trend #6: Decentralized Physical Infrastructure Networks (DePINs)

DePINs are revolutionizing how physical infrastructure and essential services are owned, managed, and accessed.¹⁶ By leveraging peer-to-peer (P2P) networks and decentralized protocols, DePINs replace reliance on centralized intermediaries with community-driven models. These decentralized physical systems enable shared ownership and management of infrastructure such as servers, sensors, and renewable energy assets, paving the way for more equitable and efficient access to real-world services.

*DePIN Projects by Category (Source:* *Dune Analytics*)

Use Case of DePIN

Penomo is a DePIN platform that transforms renewable energy assets, such as batteries and solar units, into tokenized and tradable entities.¹⁷ By leveraging tokenization and fractional ownership, Penomo empowers individual and institutional investors, along with Software-as-a-Service (SaaS) user communities, to invest in and own direct stakes in battery assets that were once inaccessible and illiquid. In return, they earn recurring revenue shares generated from the utility of the collectively-owned battery networks.

Conclusion

2024 marked a turning point in Web3, laying the foundation for new paradigms across user experience, automation, community engagement, and infrastructure. The rise of chain abstraction, AI agents, memecoins, restaking, superapps, and DePINs highlights the Web3 community's ability to innovate at the intersection of technology, finance, and real-world utility.

Stay tuned to see how Web3Auth will play a key role in enabling the next chapter in the book of Web3.

X (Twitter): https://twitter.com/web3auth

Discord: http://discord.gg/web3auth

Farcaster: https://warpcast.com/web3auth

Sources:

(1) Coinbase, "Introducing AgentKit" - https://www.coinbase.com/developer-platform/discover/launches/introducing-agentkit

(2) CoinTelegraph, "Coinbase introduces 'Based Agent' for creating AI agents in 3 minutes" - https://cointelegraph.com/news/coinbase-based-agent-ai-agent-crypto-transactions-brian-armstrong-base

(3) Griffain, "Hi, I'm Griffain" - https://griffain.com/

(4) Eliza, "Eliza Wakes Up" - https://elizawakesup.ai/login

(5) Virtuals Protocol, "Create and Co-own AI Agents" - https://www.virtuals.io/

(6) CoinDesk, “Memecoins Reach $140B Market Cap and Gain Ground in Crypto Economy” - https://www.coindesk.com/markets/2024/12/05/memecoins-reach-140-b-market-cap-and-gain-ground-in-crypto-economy

(7) CoinGecko, "What Is the Memecoin Supercycle and the Explosive Growth of Memecoins" - https://www.coingecko.com/learn/memecoin-supercycle-crypto#what-to-do-during-the-memecoin-supercycle