Crypto Trends for 2025: Stablecoins, App Stores, UX, and More
Jan 3, 2025
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Explore the potential of dormant crypto holders and how innovative tech can re-engage them. Dive into the impact of stablecoins on traditional finance and the challenges of app store navigation for developers. Learn about the importance of simplifying crypto for mainstream users and enhancing their experience. The conversation also touches on critical choices developers face when deciding between building new tech versus using existing solutions, plus the evolving landscape of crypto regulation.
The substantial reduction in stablecoin transaction costs presents a major opportunity for small businesses to increase profitability through lower payment fees.
The emergence of dedicated app stores for cryptocurrencies enhances innovation and accessibility, enabling wider distribution and discovery of crypto applications without burdensome fees.
Deep dives
The Rise of Stablecoins
Stablecoins have made significant advancements in their transaction costs, dropping from $5 to less than a tenth of a cent per transfer. This improvement has the potential to revolutionize payment systems, particularly for small businesses that operate on slim profit margins. Many of these retailers, such as coffee shops or corner stores, are expected to be the first adopters of stablecoins, as their acceptance could directly enhance profitability. The integration of stablecoins could alleviate the financial burdens posed by credit card transaction fees, allowing these businesses to retain more of their earnings.
Emergence of Crypto App Stores
The development of dedicated app stores for cryptocurrencies marks a significant shift in how crypto applications can be distributed and discovered. Traditional platforms like Apple's App Store have often imposed inconsistent and unclear guidelines, hindering the launch of crypto-based apps. New alternatives, such as Solana's Dapp Store, offer fee-free environments that can spur innovation in the crypto ecosystem. These app stores not only provide essential tools for decentralized applications but also enable broader access to the crypto market for users and developers alike.
Activating Dormant Crypto Users
A large percentage of crypto holders remain inactive, with estimates suggesting only 5% to 10% regularly using their assets. This reveals a significant opportunity for the industry to convert these dormant users into active participants as technology and user experience improve. The cyclical nature of crypto prices often motivates interest; as prices rise, users tend to engage more deeply with the technology. Successfully bridging existing users to active engagement may lead to substantial growth in the crypto market as awareness and accessibility increase.
Hiding the Technical Complexity
For crypto to gain mainstream acceptance, it is crucial to communicate its benefits without overwhelming users with technical jargon. Experts emphasize the importance of making crypto applications intuitive and accessible, likening this need to how successful products, like Gmail, simplified underlying technologies. Users should not need to understand complicated terms or infrastructure to enjoy the advantages of crypto; instead, the focus should be on the value it brings, such as cost savings and ease of use. By prioritizing user-friendly experiences, the crypto industry can attract a broader audience and support the flourishing of decentralized technologies.
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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