The future of cryptocurrency is increasingly resembling a global financial system rather than merely a speculative arena, as noted by Andreessen Horowitz.
In their State of Crypto 2025 report, a16z analysts suggest that the industry has transitioned into a new phase characterized by advancements in infrastructure, greater regulatory clarity, and stronger connections with traditional finance. Key trends anticipated for the upcoming year include: the expansion of stablecoins, real-world assets migrating onchain, and new intersections with artificial intelligence (AI).
Stablecoins, which facilitate fast and affordable dollar transactions, are becoming widely accepted by institutions such as Visa, Citi, and PayPal. Visa highlighted a strong demand from unstable emerging markets and for cross-border transactions. According to a16z, stablecoins processed $46 trillion in transactions last year—more than double that of PayPal—and now compete with significant networks like ACH and Visa. They are also emerging as major holders of U.S. Treasury securities, surpassing nations like South Korea and Germany.
As regulatory initiatives in the United States gain momentum, stablecoins could bolster the dollar’s global standing. Regulatory legislation regarding market structure is expected to be prioritized in 2025, providing companies with a clearer framework to launch new products and onboard users.
Interest from institutional players is also increasing. BlackRock and JPMorgan are forming crypto partnerships, while Morgan Stanley intends to introduce crypto trading on E*TRADE at the start of 2025. Bitcoin and Ethereum now command over $175 billion in total, indicating a transition from fringe asset to portfolio essential.
In parallel, an infrastructure revolution is taking place quietly. Upgrades to Ethereum and the emergence of Solana have accelerated blockchain transaction speeds to over 3,400 per second, nearing the capabilities of credit card networks. These technological advances, combined with innovative privacy solutions like zero-knowledge proofs and plans for quantum-resistant encryption, are enhancing the usability and security of blockchains.
Real-world assets, including U.S. Treasuries, commodities, and equity instruments, are starting to be tokenized onchain, with $30 billion already having been completed. This transformation could fundamentally change how capital markets function by introducing more efficient settlement methods and continuous liquidity.
AI is also playing a role in this space. Developers are probing how crypto solutions like decentralized infrastructure and smart contracts can counterbalance the increasing concentration of power among major tech players. While crypto might have lost some technical talent to AI startups, it is concurrently attracting newcomers from related sectors.
Lastly, there is a noticeable shift towards creating revenue-generating products. Projects garnered $18 billion last year, with roughly $4 billion going directly to tokenholders—indicating a maturing business model that benefits users and investors alike.
With user counts reaching up to 70 million, a16z anticipates that consumer applications will spearhead the next growth wave. The report suggests viewing crypto not merely as a trend but as a sustainable platform—one that is finally establishing its place within mainstream finance.
