USDA16z Crypto Outlines 5 Metrics Set to Define Crypto’s Trajectory in 2025
Crypto Gains Momentum with Record-High Adoption and Infrastructure Growth
As cryptocurrency continues to evolve, a16z crypto has pinpointed five key metrics that reveal how the industry is shaping up for a transformative 2025. Following a banner year in 2024, which saw record adoption, technological strides, and regulatory breakthroughs, these indicators provide a closer look at where blockchain is heading and how it’s impacting the world.
1. Mobile Wallet Adoption Hits 35 Million Active Users
The rise of mobile wallet users tells a story of increasing accessibility and adoption. More than 35 million people are now actively using wallets like Coinbase Wallet, MetaMask, and Trust Wallet, while newer players such as Phantom and World App are gaining traction. This growth highlights significant progress in making blockchain technology user-friendly, bringing it closer to the seamless experiences people expect from traditional apps.
Developers are focusing on creating wallets that strike a balance between ease of use, security, and privacy, and with blockchain infrastructure now capable of supporting hundreds of millions of users, the door is wide open for a new wave of crypto adoption. What’s clear is that passive holders of cryptocurrency are starting to become active participants.
2. Stablecoins Lead in Real-World Applications
Stablecoins have proven their worth as a practical tool in the crypto world and beyond. With transaction fees plummeting in 2024, stablecoins have become an efficient way to send money across borders, make everyday purchases, and hold value in inflation-stricken economies.
Visa has even introduced a methodology to separate organic stablecoin transactions from bot-driven activity, adding transparency to how these digital currencies are used. As businesses increasingly accept stablecoins for payments, their role in the global economy is expected to expand, cementing them as one of the most widely used applications of blockchain.
3. ETPs Bring Crypto Closer to Institutional Portfolios
Exchange-traded products (ETPs) for Bitcoin and Ethereum marked a turning point in 2024, giving both institutional and retail investors easier access to cryptocurrency. The influx of net flows into these products—515,000 BTC and 611,000 ETH so far, worth $110 billion and $13 billion respectively—underscores the growing interest.
Big names in finance, including Goldman Sachs and JPMorgan, are starting to offer these products to clients, signaling a broader acceptance of crypto as a legitimate asset class. The ETP approval not only opens new avenues for investors but also demonstrates the maturing infrastructure of the crypto market.
4. DEX Usage Climbs as DeFi Gains Ground
Decentralized exchanges (DEXs) are steadily gaining ground, capturing an increasing share of trading volume compared to centralized exchanges (CEXs). DEXs now account for roughly 11% of all spot trading, with their popularity driven by high-throughput networks like Solana and Coinbase’s Base.
As more people embrace decentralized finance (DeFi), the shift away from centralized platforms reflects a broader push toward the core principles of blockchain technology. With more consumer-facing applications on the horizon, DEXs are set to become even more integral to the crypto trading landscape.
5. Blockspace Demand Highlights Blockchain Activity
Another metric to watch closely is blockspace demand, which measures blockchain activity through transaction fees. For the first time, Solana outpaced Ethereum in fee collection, despite its significantly lower costs per transaction. Sending USDC on Solana costs less than a cent, compared to $5 on Ethereum, yet Solana’s overall fee revenue reflects high transaction volumes.
This development highlights the balance between making blockchain affordable for users and maintaining high levels of activity. As blockspace demand grows, it will be a key indicator of blockchain’s economic value and its ability to facilitate meaningful activity.
From rising user adoption to evolving financial tools and increasing transaction volumes, they paint a clear picture of a space that’s not only growing but maturing. With its continued progress, cryptocurrency is proving that it’s no longer just a niche—it’s a foundational part of the global financial system.
This article has been refined and enhanced by ChatGPT.
