As we enter 2025, there are many questions surrounding cryptocurrencies, and not just those related to pricing and regulation. The underlying technology that powers some of the industry's most popular tools is also expected to change in the new year, and these shifts could have major implications for users.

For the annual Crypto Crystal Ball series, we're taking it A closer look at the narratives likely to shape the coming year, and how they're likely to impact you.

After taking a look at how much political capital Donald Trump might be willing to spend on the cryptocurrency industry's top priorities, here's how the upcoming tech upgrade could be... Ethereum It could finally pave the way for the spread of cryptocurrencies at the consumer level.

For years, the cryptocurrency industry has been praying for mass adoption to arrive. But, time and time again, on-chain products and experiences have failed to attract as many users as its Web2 competitors.

A major update to Ethereum, scheduled for February, could change that — by making on-chain applications much easier to use for everyday consumers.

said David Silverman, Senior Vice President of Strategic Business Initiatives at the Ethereum Polygon scaling project Decryption That during the 2021 cryptocurrency bull market, millions of people were interested in exploring on-chain applications — but the technology wasn't ready. With the 2025 bull cycle looming (knock on wood), Silverman says crypto products will finally be affordable.

“Next cycle, if we see a significant influx of interest, we will be able to show a proper example of what we believe is the future of Web3, rather than just a glimmer of hope,” Silverman said.

Why? Developers say Ethereum is coming Promotion of bacteria It will remove the barriers that previously made on-chain applications a headache. Goodbye gas fees and private wallets for navigating smart contracts; Welcome signing transactions with FaceID, and browse some on-chain apps without having to sign any transactions at all.

One of Pectra's key innovations is giving smart wallet functionality to the basic wallet types issued by major companies like Coinbase and MetaMask. By February, users of these wallets will be able to pay gas fees on Ethereum and all L2 coins using any cryptocurrencies of their choice, including stablecoins. They will also be able to sign transactions using universal tools like Apple's FaceID and TouchID.

These easy signing mechanisms will now also be able to enable “more complex on-chain interactions with a single click,” said Mark Tyneway, co-founder of Ethereum's layer-2 network, Optimism. Decryption.

Take session keys, for example. Previously impossible, session keys will soon allow ordinary cryptocurrency users to navigate a site or app for hours while completing dozens of secure on-chain interactions — all without the user knowing what's happening on the backend.

“You can put the entire Instagram experience on the chain without even realizing it,” Tyneway said. Decryption. “It will unleash a huge wave of innovation.”

Polygon's Silverman says Pectra will soon allow many cryptocurrency app developers to create seamless experiences where gas fees are taken care of and transaction signatures are eliminated — leaving products that look like flagship Web2 apps, but offer distinct Web3 perks.

“Crypto UX is about to go to the next level,” Silverman said. "This is the conquest."