Crypto’s future 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 argue that the industry has entered a new era shaped by infrastructure upgrades, regulatory clarity and deeper ties to traditional finance. Among the key trends for the coming year: the growth of stablecoins, real-world assets moving on-chain, and new crossovers with artificial intelligence (AI).
Stablecoins, which enable fast and cheap dollar transfers, are becoming widespread from institutions such as 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 over the past year — more than double that of PayPal — and are now competing with major networks like ACH and Visa. They are also becoming major US Treasuries, outperforming countries such as South Korea and Germany.
As regulatory efforts in the US gain traction, stablecoins could strengthen the dollar’s global position. Legislation around market structure is expected to be a top priority in 2025, giving companies a clearer framework for launching products and onboarding users.
The institutional momentum is also gathering. BlackRock and JPMorgan are building crypto partnerships, while Morgan Stanley plans to offer crypto trading on E*TRADE from early 2025. Exchange-traded funds (ETFs) for bitcoin and ethereum now have over $175 billion combined, signaling a shift from fringe asset to portfolio staple.
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 – closing in on the scale of credit card networks. These technical improvements, along with new privacy tools like zero-knowledge proofs and preparations for quantum-resistant encryption, make blockchains more usable and secure.
Real-world assets such as US Treasuries, commodities and equity instruments are starting to move on-chain, with $30 billion already tokenized. This shift could change how capital markets work by creating more efficient settlement layers and around-the-clock liquidity.
AI is also becoming part of the equation. Developers are exploring how crypto tools like decentralized infrastructure and smart contracts can control the growing concentration of power in big tech hands. Although crypto has lost some engineering talent to AI startups, it is also drawing new entrants from adjacent industries.
Finally, developers have started to focus more on revenue generating products. Projects brought in $18 billion last year, and about $4 billion of that flowed directly to token holders — suggesting a mature business model that rewards both users and investors.
With user numbers reaching 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.
