Unveiling the New Chapter of Encryption in 2025: Layer-2 Speeding Up and Reducing Costs, Unlocking Institutional Funds with RWA, Building Hardware Networks with DePIN

Key Points Overview

– Second layer scaling significantly reduces costs: Rollup technology drives transaction fees below 1 USD, with throughput soaring over 2,000+ TPS, fundamentally addressing Ethereum’s congestion issues before 2025.

– Tokenization of physical assets enables everyone to “contribute shares”: On-chain tokenization allows trillion-dollar assets such as real estate, bonds, and artworks to be divided into smaller shares, making it easy for ordinary people to participate.

– DePIN network crowdsourcing real infrastructure: from Helium hotspots to decentralized storage, edge computing, community hardware naturally expands, forming truly decentralized services.

– Web3 All-in-One, Igniting Mass Adoption: Layer 2, RWA, and DePIN join forces to completely eliminate cost, liquidity, and infrastructure barriers, paving the way for widespread adoption in the second half of 2025.

Before 2025, users had been tormented by high fees and fragmented applications—these are precisely the pain points that Layer-2 expansion aims to address in 2025. At that time, Ethereum’s “gas fee wars” often pushed the cost of a single transaction to $20 - $50, deterring the public. DeFi protocols on Layer-1 were even in short supply, paralyzed by congestion. Meanwhile, the enthusiasm for NFTs gradually waned due to a lack of lasting value, while the traditional financial system continued to operate separately from the digital market. The three major narratives of the second half of Web3 (2025 H2) specifically provide answers to these issues:

– Layer-2 rollup cost reduction and speed increase

– Tokenization of physical assets unlocks institutional funds

– The DePIN network achieves on-chain coordination of hardware

Directory

Why does Web3 need an upgrade?

What problems can Layer-2 scaling solve?

Why is now the best time to deploy RWAs?

What exactly is the DePIN network?

Why does Web3 need an upgrade?

Think about it, where is Web3 currently? High transaction fees, slow networks, and applications operating independently cannot support truly large-scale scenarios. Right now, there are three forces that are changing all of this:

– Layer-2 Scaling: The TVL (Total Value Locked) here refers to the amount of assets in USD value that users have stored in Layer-2 smart contracts, such as DeFi protocols, cross-chain bridges, etc.

– Real World Asset Tokenization (RWAs): This TVL refers to the value corresponding to loans or real assets collateralized on-chain across various protocols.

– Decentralized Physical Infrastructure Networks (DePIN): The DePIN network does not look at TVL like traditional DeFi. Instead, we use the market capitalization of Filecoin (the largest DePIN token) and the staking or locking data of Livepeer and Arweave to roughly outline the “locked” economic volume on their chains.

Combining these three elements together creates the “three-in-one” solution for Web3, laying the foundation for a large-scale blockchain experience with low fees and cross-chain interoperability in the second half of 2025.

What does Layer-2 scalability solve?

Layer-2 Scaling: Data Overview

What is Layer-2 Rollup? Why is “Layer-2 Scaling 2025” so important?

Layer-2 scaling mainly has two major schools: Optimistic Rollups and ZK Rollups. They both handle transactions “off-chain” and only submit the necessary data to the Ethereum mainnet, thereby significantly reducing the burden on the mainnet.

– Optimistic Rollups

For example, Arbitrum (ARB) and Optimism (OP) assume that batch transactions are valid by default, only sending the minimum necessary data to Ethereum, and using fraud proofs to challenge in the event of malicious behavior. This design retains security while significantly reducing on-chain gas fees.

– Zero-Knowledge Rollup (ZK Rollups)

Represented by zkSync Era (ZK), StarkNet, and Polygon zkEVM (POL), they bundle hundreds or thousands of transactions into a cryptographic proof and submit it to the Ethereum mainnet for verification of correctness. This not only improves scalability but also takes privacy protection into account.

By the end of 2024, EIP-4844 (Proto-Danksharding) introduced a “blob” transaction type, significantly reducing the cost of posting data to the chain for Layer-2 networks. This innovation directly led to a surge in usage—by mid-2025, the daily transaction volume of all Layer-2 Rollups had exceeded 12 million, compared to only about 1 million for Ethereum Layer-1. The average gas fee also plummeted from over $30 per transaction to less than $1, becoming a “critical turning point” for large-scale Web3 applications in the second half of the year.

Image Credit: COIN 98

Core L2 metrics of concern

– Daily average of 12 million+ transactions vs. Layer-1 about 1 million transactions, Rollup has become mainstream;

– In the past 18 months, the total financing reached $220 million—of which Arbitrum completed a $120 million Series B round, and Optimism secured a $100 million strategic round, demonstrating capital’s confidence in on-chain scaling;

– The DeFi TVL on major L2 networks exceeds $10 billion, with real funds migrating from the Ethereum mainnet.

Image Credit: Defillama

What pain points does Layer-2 solve?

– High transaction fees: After batch processing transactions, the average cost has dropped from tens of dollars to less than 1 dollar, enabling micropayments and on-chain games to run.

– Scalability: The combined throughput of Rollup exceeds 2,000 TPS, compared to about 15 TPS on the Ethereum mainnet, expanding application scenarios.

– Interoperability: Shared sequencers and standardized cross-Rollup bridge protocols like Optimism Superchain allow assets and data to flow seamlessly between different L2s, bidding farewell to fragmentation.

Of course, the security of bridges and the centralization of sequencers remain two major challenges: cross-chain bridges are vulnerable to attacks, and some Rollups still rely on a single sequencer for block production. The emerging decentralized sequencer committees, watchdog services, and unified scaling standards will determine whether Layer-2 can truly become the “main highway” of Web3 in the second half of 2025.

Why pay attention to RWAs now?

What is Web3 physical asset tokenization?

In summary, it is about “packaging” tangible assets from the real world—such as commercial real estate, accounts receivable, artworks, and even rare collectibles—into digital tokens on the blockchain. Each token represents a small ownership stake in the underlying asset, allowing ordinary investors to buy and sell these high-value assets that were previously only available to institutions or high-net-worth individuals. Through on-chain fractional ownership, tokenization enables participation in a market that originally had very poor liquidity, as long as there is internet access.

![rwa-visual]###https://img.gateio.im/social/moments-889ed40da4d1a6c4c55ee5e0b14668d9(

Image Credit: Medium

) Core indicators of RWA you care about

– >10 billion USD: By mid-2025, the issuance of RWA on Layer 2 networks has exceeded 10 billion USD, indicating that various platforms are implementing tokenization solutions on a large scale.

– Over 20 institutions piloted: from the money market fund issued by Franklin Templeton on Optimism Rollup, to the experimental bonds by Societe Generale on Polygon zkEVM, major traditional financial institutions are increasingly testing the waters on blockchain.

– $1.5 trillion: According to the latest estimates, the accessible market for real estate tokenization alone is $1.5 trillion, with enterprises and rental properties being the biggest highlights.

These numbers illustrate an important trend: asset managers and traditional financial institutions are moving from proof of concept to actual issuance, and the tokenization of physical assets in Web3 is transitioning from “niche experiments” to “production-level deployment.”

What pain points does tokenization solve?

– Lowering the Threshold: The investment threshold has been reduced from several million dollars to a few hundred dollars, significantly opening the doors to the market for high-value assets. For example, an office building valued at 10 million dollars can be divided into 100,000 tokens, with each entry costing only 100 dollars.

– Improve Efficiency: KYC/AML compliance checks and programmable transfer restrictions are embedded in on-chain contracts, automating compliance processes that would originally take several days or even weeks; dividend distribution and exercise of voting rights are also managed by smart contracts, completed with a single click, eliminating manual reconciliation.

– Enhanced Transparency: The immutable ledger of blockchain records every token transfer and ownership change, reducing counterparty risk and allowing for real-time verification during audits, making all details clear at a glance.

Infrastructure and regulation support

– Compliance platforms: Vendors like Tokeny, Securitize, and Fnality have established institutional-grade compliance channels, integrating identity verification, token issuance, and custody services to support institutional issuance in a one-stop solution.

– Settlement Stablecoins: The PayFi series of stablecoins (such as USDP and USDY) are becoming a low-cost, high-efficiency settlement channel for cross-chain cash flow.

– Regulatory clarity accelerates implementation: In the first quarter of 2025, the Monetary Authority of Singapore released the “Guidelines on Tokenization of Digital Assets”, and the EU’s MiCA officially took effect, clarifying the definition of tokenized securities and investor protection, releasing trapped capital and allocating budgets for major banks and asset management companies towards on-chain issuance.

As the second half of Web3 (2025 H2) predictions gradually come true, the tokenization of physical assets will become a key bridge between TradFi and DeFi, bringing trillion-dollar assets onto the chain and ushering in a new financial era that is accessible to everyone, highly transparent, and efficient.

What is a DePIN Network?

DePIN use cases and the concept of “infrastructure version of Uber”

Decentralized Physical Infrastructure Networks (DePIN) utilize blockchain coordination and token incentives to crowdsource real-world hardware and services, similar to how Uber hails rides. The project builds open, permissionless infrastructure by rewarding individuals for deploying and operating devices, expanding through community participation rather than centralized investment.

![Unveiling the New Chapter of Crypto in 2025: Layer-2 Speeding Up and Cost Reduction, RWA Unlocking Institutional Funds, DePIN Building Hardware Networks]###https://img.gateio.im/social/moments-3c38af4cb558be2584b1276cb5fc6ccb###

Image Credit: Onchain.org

( DePIN typical use cases

– Decentralized Wireless (DeWi): Networks like Helium (HNT) encourage users to install LoRaWAN or 5G hotspots. Each hotspot receives corresponding HNT rewards based on the amount of data transmitted and network demand.

– Distributed Storage: Protocols like Filecoin (FIL) and Arweave (AR) allow node operators to rent out disk space for on-chain data persistence. Storage providers stake tokens to securely store encrypted files, earning FIL or AR rewards, providing a decentralized alternative to AWS and Google Cloud.

– Edge Computing: Services like Render Network (RNDR) and Akash Network (AKT) connect users’ idle GPU and CPU computing power to clients in need of rendering, machine learning, or scientific computing. By contributing computing power, users can earn token rewards based on usage.

– Maps and Sensors: Hivemapper collects street view images through a crowdsourced dashcam, and after uploading, users can earn HONEY tokens, supporting a continuously updated global mapping project that can compete with commercial mapping services.

This model turns underutilized resources such as home routers, idle server racks, and unused vehicles into productive nodes, all of which are coordinated on-chain and managed by token holders’ DAO.

) DePIN core data focus

– Helium (HNT) has over 350,000 active hotspots worldwide, transmitting millions of IoT messages daily;

– In 2024, institutional venture capital invested approximately $150 million in DePIN startups, with leading investors including a16z and Multicoin Capital;

– As of the second quarter of 2025, the committed storage capacity of Filecoin (FIL) exceeds 250 PB, and decentralized storage is growing rapidly.

These data reflect both the scale of community participation and the confidence of investors in decentralized wireless networks and other DePIN use cases.

![Unveiling the New Chapter of Crypto 2025: Layer-2 Speeding Up and Cost Reduction, RWA Unlocking Institutional Funds, DePIN Building Hardware Networks]###https://img.gateio.im/social/moments-b4a2e23e02beda86b4ec14ed3a232246###

Image Credit: DePIN.Ninja

What problems does DePIN solve?

– Capital efficiency: Utilize existing equipment—Wi-Fi routers, GPUs, storage hard drives—to avoid high infrastructure costs and turn idle resources into productivity;

– Scalability: As the number of participants increases, the network naturally expands its coverage and capacity, no longer constrained by centralized budgets or bottlenecks;

– Community Ownership: The token governance mechanism allows participants to jointly decide on protocol upgrades, fee structures, and resource allocation, ensuring true decentralized control.

( The Challenges and Prospects of DePIN

Despite the broad prospects, DePIN still faces many challenges:

– Regulatory complexity: Wireless network projects need to apply for telecommunications spectrum licenses, and data-intensive networks must also comply with privacy regulations such as GDPR.

– Mismatch between supply and demand: Early incentive programs may exceed actual demand, resulting in many hotspots being idle due to a lack of IoT devices or customers;

– Token economy sustainability: Design a smooth transition from high initial incentives to a long-term reward model based on usage, preventing inflation collapse.

To go further, the DePIN project needs to collaborate with enterprises (such as IoT hardware manufacturers and telecom operators) and refine its token economic model. However, predictions for the second half of Web3 (2025 H2) indicate that the DePIN network, as a community-owned infrastructure, will be both efficient and resilient, laying a solid foundation for a truly decentralized ecosystem of IoT, storage, and computing power.

Finally

By the end of 2025, layer two scaling, Web3 physical asset tokenization, and DePIN use cases will work together to eliminate the bottlenecks of Web3 in terms of cost, liquidity, and infrastructure. This Web3 prediction for the second half of 2025 heralds the dawn of a new blockchain era characterized by low fees, cross-chain interoperability, and community co-construction. Are you ready to get involved? Come and share your thoughts on Twitter/X!

) Frequently Asked Questions

Q1: What is the second layer scaling for 2025?

refers to the two types of solutions: Optimistic Rollup and ZK Rollup, which process transactions off-chain in batches to reduce fees and increase Ethereum (ETH) throughput.

Q2: What is the tokenization of physical assets in Web3?

It is about converting real-world assets (such as real estate, invoices) into fragmented tokens that can be traded on the blockchain, enhancing liquidity and transparency.

Q3: What are the use cases of DePIN?

Decentralized wireless networks (such as HNT), distributed storage (such as FIL), edge computing (such as RNDR), and map crowdsourcing (such as Hivemapper) are all crowd-sourced hardware resources through token incentives.

Q4: How do these narratives fit into the Web3 predictions for the second half of 2025?

They perfectly address the pain points before 2025—high fuel costs, liquidity islands, and expensive infrastructure—clearing the way for the mainstream adoption of blockchain.

Q 5: How can I participate?

You can start building from the L2 testnet, pilot RWA issuance on a compliant platform, or deploy a DePIN node, as many projects offer grants and developer tools.

About XT.COM

Founded in 2018, XT.COM currently has over 7.8 million registered users, with more than 1 million monthly active users, and user traffic within the ecosystem exceeding 40 million. We are a comprehensive trading platform supporting over 800 quality cryptocurrencies and more than 1000 trading pairs. The XT.COM cryptocurrency trading platform supports various trading types such as spot trading, leveraged trading, and contract trading. XT.COM also has a secure and reliable NFT trading platform. We are committed to providing users with the safest, most efficient, and most professional digital asset investment services.