Crypto Is Growing Up, Says Andreessen Horowitz
-
Written by
Simonas Brazionis - Updated 2025-10-22 23:27:48
Andreessen Horowitz’s State of Crypto 2025 report paints an optimistic picture of a maturing industry entering mainstream adoption. The 54-page analysis highlights Bitcoin’s dominance, booming stablecoin use, rising developer activity, and a long-awaited thaw in U.S. regulation.
Crypto’s market is now “big, global, and growing,” the report claims, fueled by feedback loops between prices, builders, and users. After recovering from the post-FTX downturn, developer activity is climbing again — led by Ethereum, Solana, and zero-knowledge (ZK) projects.
Bitcoin remains king, holding over half of crypto’s total market cap, now above $4 trillion. More than 40,000 monthly developers and 60 million mobile wallet users are active, while stablecoins have become a global payments force, processing over $9 trillion in annual transactions — surpassing PayPal and narrowing the gap with ACH.
Andreessen Horowitz notes that while crypto continues to evolve as both a risk asset and a macro hedge, it’s now firmly anchored in global finance.
Table of content
2025: The Year of Institutional Adoption
This year marks a tipping point for institutional engagement. Financial giants — including BlackRock, Fidelity, PayPal, Visa, Stripe, and JPMorgan — are integrating crypto into payments, custody, and investment products. Bitcoin and Ethereum ETFs together hold over $170 billion, with BlackRock’s fund alone surpassing $90 billion in BTC.
Public companies are adding crypto to balance sheets, and Circle’s market cap soared past $50 billion after its IPO. Stablecoin issuers like Tether and Circle now rank among the top 20 holders of U.S. Treasuries, signaling the dollar’s growing digital footprint.
DeFi, meanwhile, accounts for 25% of all spot trading, while tokenized Treasuries and bonds exceed $30 billion on-chain. Networks like Helium and Render are pioneering decentralized physical infrastructure (DePIN), turning crypto incentives into real-world productivity.
Beyond Speculation: Real Adoption and Efficiency
The report argues that crypto infrastructure is nearly “ready for prime time,” with blockchains processing over 3,400 transactions per second. Solana leads in throughput and app revenue, while Ethereum’s Layer-2 networks deliver record volumes at minimal fees.
Bridges and ZK proofs are accelerating scaling and privacy, and developers are preparing defenses against quantum threats that could endanger billions in BTC.
Meme coins — more than 13 million new ones last year — highlight regulatory blind spots, but NFTs and prediction markets are evolving into sustainable sectors with real utility.
Where Crypto Meets AI
Andreessen Horowitz sees growing overlap between AI and crypto. Blockchain can help verify human identity (17 million people verified on World), enable autonomous agent payments, track digital IP, and decentralize computing resources — with over 420,000 AI models already running on crypto-based networks like Gensyn.
Roughly 30% of recent crypto venture deals now involve AI integration, as both industries converge around transparency, decentralization, and trust.
U.S. Policy Catching Up
The U.S. crypto landscape is improving fast. Bipartisan legislation — including Trump’s GENIUS Act and the pending CLARITY Act — provides long-sought legal clarity. Federal agencies have updated rules: the DOJ revised crypto prosecution policies, the CFTC affirmed that “code isn’t a crime,” and the SEC issued guidance on stablecoins and ETFs.
This maturing environment allows projects to generate direct on-chain revenue. Tokens earned $18 billion in income from $33 billion in user fees last year, the report says, signaling a more self-sustaining economy.
Blockchain Expert
