According to Andreessen Horowitz, the future of cryptocurrencies is starting to look more like a global financial system and less like a speculative playing field.
In their State of Crypto 2025 report, a16z analysts argue that the industry has entered a new era marked by infrastructure upgrades, regulatory clarity, and deeper ties to traditional finance. Among the biggest trends for the coming year are the growth of stablecoins, real-world assets moving on-chain, and new intersections with artificial intelligence (AI).
Stablecoins, which enable fast and inexpensive dollar transfers, are seeing widespread adoption by 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 PayPal) and now rival major networks like ACH and Visa. They are also becoming major holders of the US Treasury, surpassing countries such as South Korea and Germany.
As regulatory efforts in the US gain steam, stablecoins could strengthen the dollar’s global position. Market structure legislation is expected to be a top priority in 2025, giving companies a clearer framework for launching products and onboarding users.
Institutional momentum is also increasing. BlackRock and JPMorgan are building crypto partnerships, while Morgan Stanley plans to offer crypto trading on E*TRADE starting in early 2025. Bitcoin exchange-traded funds (ETFs) and ethereal They now hold more than $175 billion combined, indicating a shift from marginal asset to core portfolio asset.
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-resistant encryption, are making blockchains more usable and secure.
Real-world assets such as US Treasuries, commodities, and equity instruments are starting to move up the chain, with $30 billion already tokenized. This change could reconfigure the functioning of capital markets by creating more efficient settlement layers and 24-hour liquidity.
AI is also becoming 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 cryptocurrencies have lost some engineering talent to AI startups, they are also attracting new entrants from adjacent industries.
Finally, developers are starting to focus more on revenue-generating products. The projects generated $18 billion last year, and around $4 billion of that amount flowed directly to token holders, suggesting a mature business model that rewards both users and investors.
As the number of users reaches 70 million, a16z expects consumer apps to drive the next wave of growth. The report paints a picture of cryptocurrencies not as a trend but as a long-term platform, one that is finally finding its place in the mainstream economy.
