Crypto Trends for 2025: Stablecoins, App Stores, UX, and More

Key takeaways

Stablecoins have reached product-market fit and could help small businesses improve profit margins by eliminating high transaction costs.
The emergence of dedicated app stores for crypto can help overcome distribution challenges faced by traditional app platforms.
A significant opportunity exists in the market to convert the majority of passive crypto holders into active users.
Builders should leverage existing infrastructure to focus on unique value propositions, leading to a more cohesive crypto ecosystem.
The crypto industry needs to simplify its message and eliminate jargon to attract mainstream users and tap into the broader market.

Summary

Stablecoins: Finding Product-Market Fit

Sam Broner discusses the recent improvements in stablecoin transaction costs, which have dropped significantly from $5 to less than a tenth of a cent. This change has the potential to benefit margin-sensitive businesses like corner stores and coffee shops, which stand to gain from accepting stablecoins. Historically, these businesses have faced steep credit card fees, cutting into their profits. Broner emphasizes that while stablecoins have yet to be widely adopted by retailers, the localized relationships between customers and businesses can facilitate the adoption of stablecoins as customers learn to use them.

The Rise of App Stores in Crypto

Maggie Hsu introduces the idea that crypto is finally creating its own app stores as it seeks greater distribution and discovery. Traditional platforms like Apple and Google have restricted crypto apps, raising concerns about fairness and clarity in their approval processes. Emerging alternatives, such as Solana’s DApp Store and World App, are beginning to gain traction by providing fee-free options. Hsu encourages a dialogue about the balance of too many options versus the need for curation, arguing that the growth of these specialized app stores is a critical step towards mainstream adoption.

Converting Passive Holders to Active Users

Darren Matsuoka highlights a significant gap in the crypto industry: 90% of people who own crypto are not actively using it. This creates a pivotal opportunity for growth as the industry matures. Understanding pricing trends and product offerings can help convert passive holders to active users. Matsuoka believes that as technology improves, there will be more engagement and user experience that shifts focus from solely acquiring new users to better serving existing ones.

Leveraging Existing Infrastructure

Yokem Neu posits that builders within the crypto space will increasingly rely on existing infrastructure rather than reinventing the wheel. The stabilization of tech stacks in crypto will allow developers to focus on creating value and differentiating their products. Neu explains that this shift will lead to a focus on specialized contributions while leveraging best practices already established, ultimately paving the way for a more professional environment.

Hiding the Technical Jargon

Chris Lyons emphasizes the need for crypto applications to become more user-friendly by eliminating the technical jargon that often accompanies them. By focusing on the core benefits that matter to everyday users, such as decentralization and ownership, the industry could significantly broaden its audience. He argues that crypto should be as intuitive as SMTP for email usage—not something users think about at all.

Show notes

with @sambroner @meigga @darenmatsuoka @jneu_net @chrislyons and @rhhackett @smc90

Welcome to our special end-of-year episodes -- which also look ahead to 2025 -- covering our annual Big Ideas lists, where various a16z crypto team members share what they are personally excited about. (You can see the firmwide list, also including all the trends of the crypto team, here.)

This episode is part 1 of 2 -- but you don't have to listen to them in any particular order -- covering the trends and themes of:

stablecoins, payments, and where the early adopters will come from;
app store distribution, curation, and discovery;
where the next crypto users will come from, turning passive holders into active users;
how builders improve, and better choose, infrastructure; and
simplifying user experience.

Covering each of these -- and coming from the investing, go-to-market, data science, research, and media teams are: Sam Broner, Maggie Hsu, Daren Matsuoka, Joachim Neu, and Chris Lyons; in conversation with hosts Sonal Chokshi and Robert Hackett. (Stay tuned until the end for some of our meta-commentary.)

These are just 5 of the 14 trends we shared; you can check out the full list at a16zcrypto.com/bigideas.

Also be sure to check out part 2, which covers all the trends at the intersection of crypto and AI.

As a reminder, none of the content is investment, business, legal, or tax advice; please see a16z.com/disclosures for more important information -- including a link to a list of our investments.

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