Crypto Trends for 2025: Stablecoins, App Stores, UX, and More
a16z Podcast
Deep Dive
Why are stablecoins considered to have found product-market fit, and what benefits do they offer to small businesses?
Stablecoins have found product-market fit due to significant platform improvements, such as reducing transaction costs from $5 to less than a tenth of a cent. This cost reduction is transformative for small businesses, like coffee shops operating on thin 2% margins, as it can double their profitability by eliminating high credit card fees. Small businesses, which often don't benefit from fraud protection offered by credit cards, stand to gain the most from stablecoins by reclaiming margins lost to payment providers.
What challenges do crypto app developers face with traditional app stores, and how are crypto-specific app stores addressing these issues?
Crypto app developers face inconsistent and opaque policies from traditional app stores like Apple's App Store and Google Play, leading to delays, denials, or blocks. Crypto-specific app stores, such as Solana's Dapp Store and WorldCoin's World app, offer fee-free alternatives and are gaining traction. These decentralized app stores provide a more consistent and open environment for developers, reducing reliance on traditional platforms and fostering innovation in the crypto space.
What is the significance of converting passive crypto holders into active users, and what factors could drive this transition?
Only 5% to 10% of crypto holders are actively using crypto, representing a significant opportunity for the industry. Factors driving this transition include improved infrastructure, better user experience (UX), and the emergence of new application categories. The price innovation cycle, where rising crypto prices attract interest and development, also plays a role. As the technology matures, passive holders are more likely to engage with crypto for its utility, such as payments or decentralized applications, rather than just holding it as an asset.
Why is reusing existing infrastructure important for crypto builders, and what are the potential obstacles to this approach?
Reusing existing infrastructure allows crypto builders to focus on differentiating their products rather than reinventing foundational components. This approach saves time and effort, enabling faster innovation. However, the success of this strategy depends on the stability of the tech stack. If the underlying technology undergoes significant changes, builders may need to adapt or rebuild. The key challenge is determining when existing solutions are 'good enough' to rely on, rather than pursuing bespoke alternatives.
What does 'hiding the wires' mean in the context of crypto adoption, and why is it important for mainstream users?
'Hiding the wires' refers to abstracting away the technical complexities of crypto, such as terms like ZK roll-ups or gas fees, to make the technology more accessible to mainstream users. Instead of leading with technical jargon, the focus is on the benefits, such as cost savings or ownership. This approach is crucial for broader adoption, as most users don't need to understand the underlying technology to benefit from it. Simplifying the user experience can help crypto reach industries like music, fashion, and small businesses, where the technology's advantages are most impactful.
What are the key themes emerging from the 2025 crypto trends discussed in the episode?
The key themes include the intersection of crypto and AI, the merging of digital and physical worlds (e.g., tokenizing physical assets), and the maturation of the crypto industry with improved user experience and infrastructure. These trends reflect a shift from focusing on technology-first approaches to solving real-world problems, making crypto more accessible and practical for mainstream adoption.