According to Andreessen Horowitz, the future of crypto is starting to look more like a global financial system and less like a speculative playground.
In their State of Crypto 2025 report, a16z analysts argue that the industry has entered a new era due to infrastructure upgrades, regulatory clarity, and deeper ties with traditional finance. Among the most important trends for the coming year: stablecoin growth, real-world assets moving on-chain, and new interconnections with artificial intelligence (AI).
Stable coins, which enable faster and cheaper dollar transfers, are being widely adopted by institutions like Visa, Citi, and PayPal. Visa said it sees strong demand in volatile emerging markets and cross-border payments. According to a16z, stablecoins handled $46 trillion in transactions in the last year – more than double that of PayPal – and now rival major networks like ACH and Visa. They are also becoming the leading holders of US Treasuries, overtaking countries like South Korea and Germany.
As regulatory efforts in the US gain momentum, stablecoins could strengthen the dollar’s global position. Legislation around market structure is expected to be a top priority in 2025, giving companies a clear framework to launch products and engage users.
Institutional momentum is also increasing. BlackRock and JPMorgan are building a crypto partnership, while Morgan Stanley plans to offer crypto trading on E*Trade from early 2025. Exchange-Traded Fund (ETF) for Bitcoin and ethereum They now jointly own more than $175 billion, signaling a shift from marginal assets to portfolio staples.
Meanwhile, a quiet infrastructure revolution is underway. Ethereum upgrades and the rise of Solana have increased blockchain transaction speeds to more than 3,400 per second – which is closing in on the scale of credit card networks. These technological improvements, along with the preparation of new privacy tools such as zero-knowledge proofs and quantum-resistant encryption, are making blockchains more useful and secure.
Real-world assets such as US Treasuries, commodities and equity instruments are beginning to migrate to the onchain, with $30 billion already tokenized. This change could reshape the way capital markets operate by creating more efficient settlement layers and round-the-clock liquidity.
AI is also becoming part of the equation. Developers are exploring how crypto tools like decentralized infrastructure and smart contracts can prevent the increasing concentration of power in the hands of big tech. Although crypto has lost some engineering talent to AI startups, it is also drawing new entrants from adjacent industries.
Ultimately, developers are starting to focus more on revenue generating products. The projects brought in $18 billion last year, and about $4 billion of that flowed directly to tokenholders – pointing to a mature business model that rewards users and investors alike.
As user numbers reach 70 million, a16z expects consumer apps to drive the next wave of growth. The report paints a picture of crypto not as a trend but as a long-term platform – one that is finally finding its footing in the mainstream economy.