From mobile wallets to transaction fees, a16z crypto breaks down the key trends shaping the crypto landscape in 2025.
The year 2024 was transformative for the crypto space as activity reached all-time highs, transaction fees dropped, stablecoins found practical use cases, and Bitcoin was discovered (BTC) and Ethereum (ETH) exchange traded funds finally received approval. At the same time, regulatory clarity began to emerge, offering a clearer way forward for the sector. As 2025 begins, here they are five meters a16z contributor Daren Matsuoka thinks it's worth keeping an eye on.
Mobile crypto wallets
Crypto wallets on mobile are where the action is. By 2024, more than 35 million people were using them every month, Matsuoka notes, elevating names like Coinbase Wallet, MetaMask, and Trust Wallet, which are leading the charge. Meanwhile, newer apps like Solana-focused Phantom and World App are also gaining steam.
Mobile crypto applications have become so popular that they are now an informal indicator of retail investor interest, with observers noting a correlation between their high ratings in Apple's App Store and crypto prices getting up
Although millions own crypto, many are still passive holders. For wider adoption, Matsuoka says blockchain developers need to find the “right balance between security, privacy and usability,” acknowledging that the task is “not small.” Nevertheless, partner a16z believes that blockchain infrastructure can now handle “hundreds of millions – or billions – of people on chain,” calling it “a better time than ever ever to build a next-generation mobile wallet” than ever before.
according to data from Statista, the countries with the highest adoption of mobile wallets are in Asia, despite the presence of major US brands such as PayPal, Apple Pay, and Google Pay. This trend is not accidental as mobile wallets are being used in emerging markets as a tool to address the issue of unbanked populations. As a result, the next big innovation in mobile crypto wallets may emerge from this sector.
Stablecoins everywhere
Stablecoins had a big time in 2024. Lower transaction fees made them even more useful for things like cross-border payments, cashback, and even just buying everyday items. They are also helping people in countries with false resource value inflation (eg Argentina and Turkey).
“Stablecoins are already the cheapest way to send dollars, and we expect enterprises to accept stablecoins for payments.”
Darren Matsuoka
However, there is still no solid solution that brings stable dog payments closer to traditional methods, leaving a huge gap in the market.
Matsuoka notes that stablecoin payments are gaining traction quickly and don't show signs of slowing down like Visa bulk payments has developed a dashboard to distinguish real dog-sustainable use from bot-driven transactions.
“If stablecoin adoption – one of crypto's clearest use cases – takes off in 2025, this metric will be one to watch,” says Matsuoka.
ETPs bring Bitcoin and Ethereum to the masses
Last year, Bitcoin and Ethereum got their first proper exchange-traded funds approved in the U.S. This makes it easier for regular people – and large institutions – to invest in crypto.
However, so far these ETFs have attracted only 515,000 BTC (about $110 billion) and 611,000 ETH (~$13 billion), Matsuoka says, adding that “putting the issuers in place – like Goldman Sachs, JP Morgan, and Merrill Lynch, can get these products into retail investors' portfolios – it will take time.”
Partner a16z recommends monitoring on-chain deposits and withdrawing addresses “marked as holders of the ETPs,” noting that it is likely more institutional investors seeking exposure to crypto assets, which leads to more net flows to the ETPs.
DEXs vs. CEXs
Decentralized exchanges are slowly eating into the market share of centralized exchanges. While their trading level is still far from centralized competitors, they are already handling about 11% of spot trading, Matsuoka said, adding that the number is climbing.
“Recently, DEX volume hit an all-time high – driven by a significant increase in trading volume on high-yield chains like Coinbase's Base and Solana as new users entered the space.”
Darren Matsuoka
Although Matsuoka says DEXs will likely gain traction in 2025, it is unclear whether retail investors will be in a rush to move away from centralized platforms. So far, the pace has been slow, as it took four years for decentralized trading platforms to capture more than 10% of spot trading volume compared to their centralized counterparts, per data from DefiLlama.
Transaction costs
To determine which blockchain network is gaining popularity, transaction fees could show how much demand there is. But here's the catch: while taxes should show growth, they shouldn't go so high that they scare off consumers.
Last year, Solana surpassed Ethereum in total fees collected for the first time, even though Solana transactions are very cheap (less than 1 cent vs. $5+ on Ethereum). Matsuoka acknowledges that this is a big milestone, adding that many ecosystems and their associated tax markets are maturing, making it “a good time to start the economic value measure that is enabled by various blockchains.”
In the long term, demand for block space – measured as the total USD value of fees paid – may be the most important measure to monitor the progress of the crypto industry, as it reflects its engage in valuable economic activities and consumers' willingness to pay for them, Matsuoka wrote.
