The future of Crypto is starting to look more like a global financial system and less like an imaginary playground, according to Andreessen Horowitz.
In the 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 most important trends for the coming year: Growth of StableCoin, real-world assets moving onchain, and new intersections with artificial intelligence (AI).
StableCoins, which allow fast and cheap dollar transfers, are seeing widespread adoption from 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 last year – more than double paypal – and now rivals major networks like ACH and Visa. They also become the main holders of the US Treasury, surpassing countries such as South Korea and Germany.
As regulatory efforts in the US gain traction, StableCoins could boost the dollar’s global position. Legislation around market structure is expected to be a major priority in 2025, giving companies a clearer framework to launch products and onboard users.
Institutional momentum is also gaining. BlackRock and JPMorgan are building crypto partnerships, while Morgan Stanley plans to offer crypto trading on e*commerce starting in early 2025. and Ethereum It now holds more than $175 billion combined, signaling a transition from fringe asset to portfolio staple.
Meanwhile, a quiet infrastructure revolution is underway. Ethereum’s upgrades and the rise of Solana pushed the blockchain’s transaction speed to more than 3,400 per second – closing in on the size of credit card networks. These technical improvements, along with new privacy tools such as zero-knowledge proofs and provision for quantum-resistant encryption, make blockchains more usable and secure.
Real-world assets such as US Treasury, Commodities and Equity Instruments are starting to move onchain, with $30 billion tokenized. This change could rewire how capital markets work 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 check the growing concentration of power in the hands of Big Tech. While AI startups lost some engineering talent, it also attracted new entrants from adjacent industries.
Finally, developers are starting to focus more on revenue generating products. The projects brought in $18 billion last year, and about $4 billion flowed directly to tokenholders – indicating a maturing business model that rewards 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 way into the mainstream economy.
