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DeFi in 2025 promises smart accounts and AI-driven trading evolution

DeFi in 2025 promises smart accounts and AI-driven trading evolution
The year 2024 has been significant for decentralized finance (DeFi), with the adoption of smart accounts and advancements in infrastructure. However, there is still a need for a full overhaul of existing DeFi infrastructure to achieve widespread adoption. Ethereum's upcoming Pectra upgrade in 2025 will introduce a new standard, EIP-7702, which will allow Externally Owned Accounts (EOAs) to execute smart contract code directly from their addresses. This will enhance functionality but may pose security risks. It is anticipated that at least 20% of Ethereum users will have moved to EIP-7702-enabled smart accounts by 2025. To drive adoption, there is a demand for greater accessibility, security, and efficiency in DeFi. Safe is working on a solution called Safenet, which aims to provide chain abstraction and enable users to view and complete multichain transactions easily. The integration of AI agents and smart accounts is expected to take off in 2025, enabling users to manage their crypto portfolios with greater ease and enhancing experiences in areas like gaming and prediction markets. Global traditional financial institutions are also recognizing the potential of DeFi, particularly in remittances and payments. Cross-chain interoperability is another focus, with Zero Knowledge Proofs (ZKPs) being explored to enhance privacy and security. Chainlink's partnership with Safe is aimed at developing a ZK-based solution called DECO. Overall, the future of DeFi looks promising with advancements in smart accounts, AI agents, integration into traditional finance, and cross-chain interoperability.

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