The cryptocurrency market in 2025 is being reshaped by accelerating institutional adoption and the surging use of stablecoins, according to venture capital firm Andreessen Horowitz (a16z).
In its latest ‘State of Crypto 2025’ report, a16z highlighted the deepening involvement of traditional financial giants such as BlackRock, Fidelity, Visa, and JPMorgan Chase, alongside fintech leaders like Stripe, PayPal, and Robinhood.
These companies are expanding their footprint in digital assets as blockchain infrastructure achieves new levels of scalability and efficiency.
The report noted that some blockchain networks now handle over 3,400 transactions per second, a 100-fold increase in throughput over the past five years.
This advancement has fueled the explosive growth of stablecoins, fiat-pegged digital tokens that move seamlessly across the internet without traditional banking intermediaries.
Stablecoin transactions reached a record $46 trillion in the past year, representing a 106% year-on-year increase.
On an adjusted basis that excludes automated trading and non-organic flows, stablecoin volume totaled around $9 trillion, up 87% from the previous year.
“Stablecoins have evolved from a niche settlement tool for crypto traders into one of the fastest, cheapest, and most global ways to send a dollar,” the report stated.
The scale of stablecoin activity now rivals that of the U.S. Automated Clearing House (ACH) network, which processes most direct deposits and bill payments across American banks. a16z called this milestone a clear signal of crypto’s growing maturity and its expanding role in mainstream finance.
Regulatory progress is also propelling adoption. In the U.S., the recently passed GENIUS Act sets clearer standards for stablecoin reserves and oversight, while U.K. regulators are preparing a similar framework expected by next year.
Beyond stablecoins, institutional participation continues to deepen, with major banks and asset managers launching spot crypto ETFs and expanding digital asset services, underscoring crypto’s integration into the global financial system.