What’s next for Web3 in 2025?

As anticipated, the first week of 2025 was quiet for Web3 and emerging tech. But is it a sign of things to come or simply the calm before the storm? 2024 marked the rise of the uncanny in Web3 and fashion, with internet users flocking to AI-powered filter apps like Pika.AI and Replicate to transform everyday content into viral, PS2-inspired visuals. Culture-shaping brands like Loewe and Marc Jacobs leaned into these digital trends to boost their online visibility, but the real game-changer for luxury lay elsewhere. Accurate sizing tech, Digital Product Passports (DPPs), hyper-realistic try-ons, and the booming gaming industry opened up new avenues for engagement and revenue. So, what’s next? Below, industry innovators share their predictions for 2025, exploring how the tech sector is set to evolve and the strategies brands should adopt to stay ahead. Sustainable solutions As consumers become more discerning about ethical practices and transparency, sustainability and traceability will be key themes in Web3 this year, says María Fernanda Hernández Franco, sustainability director at IoT solutions company Temera. “End-to-end traceability solutions will play a crucial role in delivering on a more sustainable and circular luxury industry, particularly in Europe, as brands face stricter regulations on supply chain transparency,” she says. Technologies like the Internet of Things (IoT), blockchain, and AI will be crucial in enabling transparency and accountability, from raw material sourcing to end-of-life, Franco adds. “For brands, the priority will be adopting traceability systems that offer the opportunity to go beyond compliance, adding the chance for actionable insights and additional benefits to enhance customer trust and operational efficiency.” Renewed interest Colby Mugrabi, founder and CEO of mmERCH, believes that brands will return to the digital space after stepping back over the past two years — but they will approach it from a new perspective. “As the market turns and looks like it’s taking off again, we’re expecting fashion and luxury brands to come back to Web3 with renewed interest in tools and applications of the technology,” says Mugrabi. “With our proof of concept now established, we foresee a growing adoption of algorithmic design, NFT-linked physical products, and token-linked experiences and rewards by fashion brands of all sizes.” Mugrabi continues, “We also anticipate an industry-wide embrace of these innovations, particularly among emerging brands eager to differentiate themselves. Consumers are increasingly demanding connectivity and transparency in their luxury purchases, and it’s up to us as creators and brands to meet these expectations while delivering the excitement of in-person experiences.” A turning point For Seán Pattwell, founder and CEO of CW8 Communications, 2025 marks a turning point for Web3 and digital innovation among brands. “It’s clear that the next chapter of Web3 isn’t going to be just about NFTs or token-gated experiences; it’s about using innovation as a point of differentiation and value creation that resonates deeply with today’s consumers.” Pattwell notes that clients and consumers are “increasingly drawn to projects that bridge the physical and digital worlds,” with digital tools offering opportunities to build trust while balancing tradition with innovation. But its true potential lies in intentional storytelling: “At CW8, we believe 2025 will be the year when thoughtful narratives, powered by emerging technology, elevate luxury and fashion to new heights, connecting brands and audiences like never before.” Digital Product Passports With the EU’s new regulations on traceability officially coming into effect this year, Aura Blockchain Consortium CEO Romain Carrere believes that Web3 will be defined by Digital Product Passports (DPPs). “It’s been exciting to see the diverse and ever-expanding capabilities of DPP in the luxury and fashion industry, in particular,” Carrere says. “More brands are moving from pilot initiatives to exceptional scales of DPP implementation, each taking a unique approach which aligns with their respective brands’ needs and goals.” Carrere argues that early compliance with DPPs gives brands a competitive edge, as customer and shareholder expectations are shifting not only toward sustainability and circularity but also real-world value. “Technology solutions have a critical role to play, and the immutability and scalability of blockchain is an asset to the brands who want to hold their data in the most secure environment. We are working with all of our members to help them explore potentially new possibilities in terms of product repair, transfer of ownership, securing the secondhand market, safeguarding against counterfeiting, and further benefits and rewards — all of which strengthens trust between customers and brands.” AI’s next chapter AI and blockchain will deepen their foothold in the creative fashion landscape this year, says SYKY founder Alice Delahunt. “When harnessed the right way by creatives, AI has the potential to be a powerful conduit and catalyst for fashion innovation,” Delahunt tells Jing Daily. “However, with its proliferation, verifying the authenticity and origin of digital content becomes crucial, which is enabled by blockchain in the truest way. In 2025, AI will continue to leave its mark on the fashion industry, and I believe that building on-chain will become increasingly important for brands and creators who exist in digital worlds.” Earlier this week, the digital fashion house debuted its first short-form magazine — curated by stylist and artistic director Nicola Formichetti — as it expands into editorial. “The SYKY Magazine will provide a home for digital creators and culture, and we’re incredibly proud to work with Yasmin Gross, an interdisciplinary artist who works with AI, for our first cover,” says Delahunt.

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What’s next for Web3 in 2025?