The future of crypto is starting to look more like a global financial system and less like a speculative playground, according to Andreessen Horowitz.
In its State of Crypto 2025 report, a16z analysts say the industry has entered a new era shaped by infrastructure upgrades, regulatory clarity, and deeper ties to traditional finance. Among the most important trends for the coming year: stablecoin growth, real-world assets moving on-chain, and new intersections with artificial intelligence (AI).
Stablecoins, which enable fast and cheap dollar transfers, are widely adopted by institutions like Visa, Citi and PayPal. Visa said it was seeing strong demand in volatile emerging markets and cross-border payments. According to a16z, stablecoins have processed $46 trillion in transactions over the past year – more than double that of PayPal – and now rival major networks like ACH and Visa. They are also becoming major holders of the U.S. Treasury, surpassing countries like South Korea and Germany.
As regulatory efforts in the United States gain traction, stablecoins could strengthen the dollar’s global position. Market structure legislation is expected to be a top priority in 2025, providing companies with a clearer framework to launch products and onboard users.
Institutional dynamics are also accelerating. BlackRock and JPMorgan establish crypto partnerships, while Morgan Stanley plans to offer crypto trading on E*TRADE starting in early 2025. Exchange-traded funds (ETFs) for Bitcoin and Ethereum now hold more than $175 billion in total, signaling a shift from marginal to core portfolio assets.
Meanwhile, a quiet infrastructure revolution is underway. Ethereum upgrades and the rise of Solana have pushed blockchain transaction speeds to over 3,400 per second, approaching the scale of credit card networks. These technical improvements, along with new privacy tools such as zero-knowledge proofs and preparations for quantum-strong encryption, make blockchains more usable and secure.
Real-world assets such as US Treasuries, commodities, and equity instruments are beginning to move on-chain, with $30 billion already tokenized. This change could rethink how capital markets work by creating more efficient settlement levels and 24-hour liquidity.
AI is also part of the equation. Developers are exploring how crypto tools such as decentralized infrastructure and smart contracts can control the growing concentration of power in the hands of big tech. Although crypto has lost some engineering talent to AI startups, it is also attracting new entrants in adjacent sectors.
Finally, developers are starting to focus more on revenue-generating products. Projects brought in $18 billion last year, of which around $4 billion was paid directly to token holders, suggesting a maturing business model that rewards both users and investors.
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 place in the mainstream economy.
