The cryptocurrency market in 2025 will be increasingly shaped by institutional adoption and the rise of StableCoins, underscoring the rapid advancements in blockchain technology capable of supporting wider mainstream use, according to venture capital firm Andreessen Horowitz (A16Z).
In its latest state of crypto report, A16Z highlighted the growing involvement of traditional financial giants such as Blackrock, VisaLoyalty and JPMorgan Chasealongside fintech companies StripesPayPal and Robinhood, all of which are expanding their presence in the digital asset space.
Part of this growth is driven by improvements in the underlying blockchain infrastructure, with some networks now processing more than 3,400 transactions per second, a more than 100-fold increase in throughput over the past five years.
This technological development continues to progress Adoption of StableCoinsfiat-pegged digital token that can move across the internet without relying on traditional payment rails. The report cited $9 trillion in StableCoin transactions over the past 12 months – an increase of 87% from last year.
On an unadjusted basis, StableCoin transactions were worth $46 trillion over the same period.
Related: Crypto Biz: Wall Street giants bet on StableCoins
“In recent years, StableCoins have been used mostly to improve speculative trading cryptos; as in the last few years, they have become the fastest, cheapest, and most global way to send a dollar,” the report said.
Regulatory developments are also helping to drive adoption. In the United States, the recent past has passed Genius Act Establishes clearer oversight and reserve requirements for issuers, aimed at ensuring transparency and consumer protection. In the United Kingdom, where legislative progress is slower, regulators are working towards the introduction of a StableCoin framework By the end of next year.
Beyond StableCoins, A16Z noted growing institutional involvement across the crypto sector, noting the rise of Exchange traded funds .
Related: BlackRock sees record quarter for iShares ETFs as bitcoin, ether demand surges
StableCoins are a “global macroeconomic force”
One of the main takeaways from the State of Crypto report is that StableCoins are becoming what A16Z calls a “global macroeconomic force.” The report notes that more than 1% of all US dollars now exist as StableCoins on public blockchains.
According to A16Z, StableCoins collectively hold more than $150 billion in US Treasurys, making them the 17th largest holder of US government debt, ahead of many sovereign nations.
A significant portion of that exposure comes from tether, the market leader, which holds nearly $127 billion Worth of Treasury Bills.
Overall, the StableCoin market has expanded to nearly $316 billion, according to data from CoinMarketCap. In addition to Tether’s USDT (USDT) and Circle’s USDC, both fully collateralized stablecoins, Athena’s synthetic dollarThe USDE, is gaining traction, with a circulating supply of nearly $11 billion.
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Related: Crypto is a ‘growth cycle’ away from mainstream adoption, 5B users
