After years of volatility and regulatory uncertainty, the industry has achieved both scale and legitimacy, crossing the $4 trillion market capitalization threshold for the first time. The findings highlight that crypto has not only survived multiple downturns but is now thriving as a global financial ecosystem spanning emerging and developed economies alike.
We’re excited to share our 2025 State of Crypto report.
This year’s story: the maturation of the crypto industry — with growing institutional adoption, the rise of stablecoins, better infrastructure, new consumer experiences, and long-awaited regulatory clarity.
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— Chris Dixon (@cdixon) October 22, 2025
A Global Market Reaches New Heights
The a16z report underscores how the crypto market has evolved from a niche technology into a powerful global financial system. The total number of people owning digital assets has reached an estimated 716 million worldwide — a 16% increase from last year — with 40-70 million considered active crypto users who transact regularly onchain. While this still represents a fraction of global internet users, the pace of growth is accelerating.
Bitcoin remains the market’s anchor, representing more than half of the total crypto capitalization and recently hitting a record price above $126,000. Ethereum and Solana, meanwhile, have regained much of the value lost in previous cycles, supported by network upgrades and renewed investor confidence. Together, these leading blockchains now account for the majority of developer activity, reflecting where innovation and long-term value creation are concentrated.
One of the most telling indicators of crypto’s maturity is its integration into the real economy. Blockchains are now processing over 3,400 transactions per second across major networks — more than a hundredfold increase over the last five years. As scalability improves and transaction fees decline, these systems are increasingly being used for real-world applications rather than speculation.
Emerging Markets Lead in Usage
The State of Crypto 2025 report identifies emerging economies as the most active in adopting digital wallets and using crypto for everyday transactions. Countries like Argentina, Colombia, India, and Nigeria are seeing surging demand for blockchain-based payment systems, often as an alternative to unstable national currencies or limited access to traditional banking. Argentina alone has recorded a 16x increase in mobile crypto wallet usage over the last three years, coinciding with a prolonged currency crisis.
In these markets, crypto serves not only as an investment tool but also as a financial lifeline. It enables individuals to store value securely, access global markets, and send cross-border payments at a fraction of the traditional cost. The report notes that mobile wallets are becoming the primary access point for crypto use in developing regions, reflecting a broader shift toward mobile-first financial ecosystems.
By contrast, developed markets such as South Korea and Australia exhibit a different pattern. There, activity skews toward token trading and speculative investment rather than payment usage. Yet, even in these economies, crypto continues to gain legitimacy as institutions, funds, and large corporations increase exposure through regulated products like exchange-traded instruments.
From Passive Holders to Onchain Participants
Despite the record number of crypto owners globally, the report emphasizes a significant opportunity gap: many holders still remain “offchain,” meaning they store or trade assets through intermediaries rather than participating directly in blockchain-based ecosystems. Out of more than 700 million people who own crypto, only a fraction actively engage in onchain transactions each month.
This gap presents a major growth frontier for the next cycle. As infrastructure improves and user interfaces become more intuitive, millions of passive holders could transition into active participants. That evolution would transform crypto from a speculative market into a foundational layer of digital economic activity – much like how the internet evolved from a communication tool into the basis of global commerce.
According to a16z, blockchains like Solana and Hyperliquid have already demonstrated that high throughput and low fees can generate genuine “real economic value.” These two ecosystems now account for over half of all blockchain revenue, signaling a diversification away from the Bitcoin and Ethereum dominance that characterized previous cycles.
A Converging Financial and Technological Landscape
The report concludes that the next stage of crypto’s expansion will be defined by convergence – between regions, technologies, and financial systems. Institutional capital is flowing into the sector through Bitcoin and Ethereum exchange-traded products, while consumer adoption continues to spread in regions historically underserved by banks.
This dual momentum - top-down from institutional investment and bottom-up from grassroots adoption - is reshaping the global financial landscape. As a result, crypto’s growth is no longer limited by speculation or hype but increasingly driven by utility and participation.
a16z’s analysis frames 2025 as the year crypto “grew up.” The sector now boasts more efficient infrastructure, improved regulatory clarity in key markets, and accelerating demand for onchain services. With both developed and developing economies contributing to adoption, the digital asset ecosystem is transitioning into a truly global financial network.
If the trend continues, the number of active crypto users could multiply in the coming years – closing the gap between holders and participants, and establishing blockchain technology as a permanent fixture of the global economy.