Venture capital giant Andreessen Horowitz (a16z) said in its latest State of Crypto 2025 report that the next phase of the cryptocurrency market will be shaped by institutional investors and the rapid global expansion of stablecoins.
a16z state of crypto 2025 tldr
▪️crypto mcap is at ath
▪️room to grow (gold is 11x btc)
▪️eth, base, solana are the top chains for devs▪️tradfi adopting crypto wildly
▪️institutional capital flowing via ETFs & DATs
▪️stables about to become the dominant pmt rails▪️volume… pic.twitter.com/pUOSI0FAEo
— VaderResearch (@VaderResearch) October 23, 2025
The report highlights the accelerating technological improvements in blockchain infrastructure that are paving the way for mainstream use, noting that transaction throughput across major networks has increased more than 100-fold over the past five years.
Stablecoins Lead the Charge Toward Real-World Utility
According to a16z, these advancements are fueling record stablecoin adoption and use in global payments. In the past 12 months alone, stablecoin transaction volumes surpassed USD 9 trillion, an 87% increase from the previous year. On an unadjusted basis, total on-chain settlement volumes reached USD 46 trillion.
“Stablecoins were once used primarily for speculative crypto trading,” the report notes, “but they have now become the fastest, cheapest, and most borderless way to move dollars globally.”
Regulatory Momentum Boosts Confidence
a16z attributes part of this growth to regulatory clarity emerging in key financial markets. In the United States, the recently passed GENIUS Act introduces new oversight standards for stablecoin issuers, including reserve transparency and consumer protection frameworks.
Meanwhile, the United Kingdom plans to establish a comprehensive stablecoin regulatory framework by late 2025, aiming to position London as a global hub for digital asset innovation.
Institutional Investment Expands Beyond Bitcoin ETFs
The report also points to a sharp rise in institutional participation across the crypto landscape. Beyond the introduction of spot Bitcoin ETFs, major financial institutions, including Citigroup, Fidelity, and JPMorgan, have begun offering or expanding digital asset services, signaling a broader shift toward blockchain-based finance.
According to a16z, this institutional embrace could define the next market cycle, blending traditional finance with decentralized infrastructure.
? Breaking: UK targets 2026 deadline for stablecoin regs to sync with America's crypto surge. Staying ahead in the digital asset game! pic.twitter.com/aJnyvC9dG1
— Crypto Jessica (@CryptoJessXBT) October 18, 2025
A New Foundation for the Crypto Economy
a16z concludes that the combination of scalable blockchain networks, regulatory clarity, and stablecoin utility is creating a durable foundation for mainstream crypto adoption.
If these trends continue, the firm believes 2025 could mark the year digital assets become an integral part of the global financial system, rather than an alternative to it.
