Crypto's Year in Review Experts Share Thoughts on a 2025

The year 2025 was supposed to be crypto's breakthrough year—legislation passed, ETFs launched, and institutions went all-in. Instead, the industry faced a brutal reality: massive crashes, retail fatigue, and the uncomfortable truth that mainstream adoption looks nothing like the hype predicted.

TLDR 2025 was paradoxical—crypto achieved maturation milestones (spot ETFs, stablecoin adoption exceeding $300B, GENIUS Act passed, RWAs legitimized) while experiencing severe market volatility with $19B liquidations in October and $1 trillion market loss. Key developments: stablecoins became financial infrastructure ($46T annual volume), tokenized treasuries scaled ($9.16B on-chain), and "DeFi mullet" architecture (compliant frontends + permissionless backends) proved viable. However, retail fatigue, altcoin oversupply, and geopolitical headwinds dampened sentiment. Industry consensus: 2025 marked crypto's transition from speculative asset to essential infrastructure backbone.

The year 2025 wasn't what anyone predicted.

Throughout the industry, conversations centered on the inevitable "breakthrough moment." The inflection point. The period when cryptocurrencies would finally transcend its reputation as volatile speculation and establish itself as legitimate financial infrastructure. Technically speaking, that transformation occurred. Legislation passed, Wall Street launched spot ETFs, stablecoins exceeded every benchmark, and RWAs transitioned from experimental concept to mainstream discussion topic.

Yet experiencing it firsthand revealed something different.

The year embodied perpetual tension. You could witness authentic maturation emerging: improved infrastructure, defined regulations, institutions abandoning their observer status to participate actively. Simultaneously, you felt widespread fatigue. Retail participants depleted after continuous token dilution. Memecoin fever peaked then collapsed. Risk tolerance evaporated. The macroeconomic environment cast shadows over everything.

We consulted those who navigated this turbulence directly. We posed three straightforward questions:

• Reflecting on 2025, which development or transition genuinely characterized cryptocurrency's year?

• Which conviction from January couldn't survive December?

• If you condensed 2025 into one word, what would you select and why?

These responses aren't promotional material or obituaries. They're unfiltered perspectives from those immersed in the action while others attempted comprehension from afar.

Cryptocurrency's 2025 Performance Analysis

Digital asset markets experienced extreme volatility throughout 2025, reaching unprecedented peaks before plummeting dramatically.

The year commenced optimistically: Total market capitalization exceeded $4 trillion initially, mobile wallet usage increased 20% annually according to a16z crypto, and stablecoin circulation surpassed $300 billion, driven by Tether and USDC, per IMF data.

American legislators enacted two frameworks: the GENIUS Act, signed July 2025, and the CLARITY Act, postponed until 2026. Both aimed to establish regulatory pathways for digital assets.

Yet sentiment deteriorated during the latter months as markets experienced severe correction, termed by media outlets as the Great Crypto Crash of 2025.

October 2025 delivered the harshest blow. Digital asset markets recorded $19 billion liquidations within 24 hours, marking history's largest liquidation event. Excessive leverage, insufficient liquidity, and sudden macroeconomic disruption triggered cascading forced sales. CoinDesk's analysis revealed Bitcoin declining to approximately $106,560, Ether dropping to $3,551, and Solana reaching $174. The USDe stablecoin depegging to $0.65 on Binance intensified pressure. Token values averaged 47% declines, exceeding May 2021's crash severity, CoinDesk documented. October, traditionally nicknamed "Uptober" for bullish performance, concluded with Bitcoin down 3.69%, per CoinGlass.

Fourth quarter 2025 continued the downturn. Bitcoin, after reaching October 2025's all-time high, currently trades 31.5% lower, CoinMarketCap indicates. The Fear and Greed Index registers 16 (extreme fear). Collectively, cryptocurrency markets lost $1 trillion valuation. November concluded worse than October with Bitcoin declining 17.67%, CoinGlass reports.

Concurrently, regulated investment vehicles progressed. America approved initial spot Solana ETFs during October, launching November. Multiple firms submitted applications, receiving approvals for spot XRP ETFs, including Grayscale, CoinShares, ProShares, Teucrium, and Franklin Templeton. Additionally, ETF filings emerged for memecoins including DOGE, TRUMP, BONK, and PENGU.

Having reviewed 2025's significant developments, let's examine expert perspectives.

Industry Leaders Identify 2025's Pivotal Transformation

Industry veterans identify vastly different catalysts shaping 2025. Some recognize cryptocurrency's evolution into essential financial infrastructure. Others emphasize economic pressures and geopolitical disruption. Many highlight regulated stablecoins' emergence as the decisive development.

"2025 was the year crypto finally moved beyond the 'new asset class' narrative and started evolving into the backbone of finance."

— Dan Mulligan, Chief Marketing Officer at Reserve

"Definitely the shift in global trade relations."

— Daniel Keller, CEO and Co-Founder at InFlux Technologies

"The global rush into stablecoins will be remembered as the defining theme of 2025."

— Paul Brody, Global Blockchain Leader at EY

Expert Analysis

Dan Mulligan, chief marketing officer at Reserve, explained to The Coin Bureau that 2025 marked cryptocurrency's transition from "new asset class" status to fundamental global finance component. Reserve operates as a DeFi platform with backing from Sam Altman and Peter Thiel.

Mulligan highlighted the U.S. dollar's large-scale blockchain migration, stablecoin supply exceeding $300 billion, and September's monthly settlement volumes surpassing $1 trillion. He emphasized payments, not speculation, becoming primary activity drivers. Tokenized T-bills and money-market funds emerged as corporate treasurers' preferred yield instruments, pushing real-world asset value on-chain into tens of billions, with BlackRock and Securitize dominating. Spot Bitcoin ETFs integrated seamlessly into conventional portfolios, no longer considered "edgy side bets," representing long-awaited mainstream acceptance.

Daniel Keller, CEO and co-founder at InFlux Technologies, presented contrasting analysis to The Coin Bureau, identifying 2025's defining force as geopolitical rather than technological. He highlighted Trump's tariffs' impact, constraining budgets, forcing business closures, and triggering cryptocurrency price collapses. Keller observed people lacked disposable income necessary for speculative digital asset investments. Fear and greed indices indicate record-low sentiment as participants anticipate additional rate increases and deteriorating geopolitical conditions.

Paul Brody, global blockchain leader at EY, told The Coin Bureau the year's legacy involves the international stablecoin adoption race. Despite lengthy implementation timelines for announced initiatives, the GENIUS Act combined with major banks' stablecoin issuance plans represents genuine historical inflection. Brody maintained "good stablecoin regulation" would activate the broader cryptocurrency ecosystem, positioning 2025 as cryptocurrency and blockchain's new era commencement.

Expectations That Failed to Materialize

Each executive identified instances where reality dramatically contradicted anticipations. Their responses illuminate 2025's unpredictability, even for industry insiders.

"I expected spot ETFs to cannibalize on-chain activity. They didn't."

— Dan Mulligan, Chief Marketing Officer at Reserve

"That 2025 would usher in the most significant bull wave we have ever seen."

— Daniel Keller, CEO and Co-Founder at InFlux Technologies

"If you had told me on January 1 that one of the only things done in the US in 2025 with bipartisan support would have been a crypto regulation bill, I would have urged you to seek counseling and get a grip on reality — but that's what happened."

— Paul Brody, Global Blockchain Leader at EY

Expert Analysis

Mulligan initially believed spot Bitcoin ETFs would diminish on-chain activity. Reality proved opposite. ETFs "professionalized the top of the funnel," while stablecoin payments and blockchain usage simultaneously surged. The "DeFi mullet" model validated itself: regulated, recognizable products fronting operations like ETFs, neobanks, brokerages, and payment applications, with permissionless infrastructure supporting—stablecoins, AMMs, and tokenized T-bills. Rather than competing, both approaches synergized. He explained, "the mullet architecture lowered customer acquisition cost and compliance risk while still tapping on-chain liquidity and yield." Though unglamorous, it achieved scale.

Keller anticipated 2025 delivering cryptocurrency's most powerful bull market. With accelerating institutional adoption, Genius Act passage, and pro-crypto administration, conditions seemed ideal. Reality proved contrary. Beyond initial memecoin enthusiasm, token performance remained universally weak. Even high-utility project assets couldn't recapture previous cycle momentum.

Brody's perspective transformation originated in Washington. "If you had told me on January 1 that one of the only things done in the US in 2025 with bipartisan support would have been a crypto regulation bill," he stated, "I would have urged you to seek counseling." Yet precisely that occurred. Year's end convinced him the industry reached irreversible momentum. Political and institutional support materializing during 2025 ensures "we've come too far" for America abandoning cryptocurrency and blockchain.

Distilling 2025 Into Single Words

When executives compressed twelve months of volatility, advancement, surprises, and paradoxes into individual words, selections exposed 2025's fragmented, multifaceted cryptocurrency experience.

Expert Analysis

Mulligan selected "mullet." The year validated the "DeFi mullet" model transcending meme status into legitimate architectural transformation. Consumer interfaces emphasized trusted, compliant experiences while underlying operations utilized permissionless infrastructure. Spot ETFs populated acquisition funnels, with stablecoins and tokenized treasuries generating actual revenue and settlement operations.

Keller picked "misunderstanding." The sector anticipated replicating historical explosive bull markets, particularly following Bitcoin's records and institutional adoption acceleration. Instead, severe altcoin dilution, Pump.fun disorder, and Bitcoin dominance shattered most projections. Despite continuous project development, market expectations proved completely incorrect.

Brody condensed 2025 to "corruption." He observed 2025 beginning promisingly, with the GENIUS Act enabling significant American stablecoin and blockchain adoption. However, concurrent blockchain-related corruption increases revealed uncomfortable realities: despite industry positioning as inclusive force, primary beneficiaries remained "those who already have a lot of money and very little ethics."

2025's Major Thematic Developments

Examining broader patterns reveals threads characterizing the year beyond daily fluctuations.

Dollar Migration to Blockchain

If 2020 established stablecoins' product-market fit, 2025 made them inescapable. Dollar-backed tokens became cryptocurrency's essential infrastructure. Andreessen Horowitz reported these digital instruments processed $46 trillion total transaction volume annually, increasing 106% year-over-year.

Crucially, blockchain dollar adoption manifested practically. Applications emerged in payroll testing, treasury functions, B2B settlements (PwC report), and fintech integrations operating discretely. Arguing against on-chain dollars becoming global financial infrastructure components became increasingly difficult.

Tokenized Treasuries and RWAs Mature

Real-world assets transitioned from predictions to markets with substantial liquidity. Tokenized T-bills and money market funds became standard institutional tools seeking secure yields minus legacy operational complexity.

Statistics revealed the transformation: $9.16 billion tokenized U.S. Treasuries circulating on-chain, BlackRock and Securitize dominating flows. More significantly, success factors emerged clearly. Yields proved attractive, infrastructure operated efficiently, custody solutions matured adequately. Risk-adjusted returns became irresistibly attractive.

Within speculation-dampened markets, RWAs provided cryptocurrency's essential element: Genuine business justification.

ETF Integration Normalizes Cryptocurrency Investment

Spot Bitcoin ETFs transformed cryptocurrency accessibility and perception. Financial advisors ceased hushed Bitcoin discussions. Portfolio managers stopped treating BTC as unconventional hedge. ETFs positioned cryptocurrency within standard allocation frameworks, eliminating adventure associations.

Note: The spot Bitcoin ETF data above is sourced from The Block and updates automatically.

Many insiders expressed surprise: ETFs didn't deplete blockchain liquidity. Instead, they expanded participation channels. Institutions received compliant, familiar structures. Meanwhile, stablecoins and blockchain products maintained parallel growth. Both ecosystems reinforced rather than undermined each other.

Altcoin Oversupply and Participant Fatigue

While market leaders matured, smaller assets struggled. Retail engagement didn't disappear but substantially decreased. Primary culprit wasn't regulation or macroeconomics; oversupply dominated. Endless tokens, chains, incentives, airdrops. Supply dramatically exceeded demand.

Subsequently, Pump.fun chaos transformed memecoin dynamics into assembly-line instant hype followed by immediate abandonment. Bitcoin remained stable. Select narratives persisted. Remaining markets felt perpetually challenging, particularly utility-focused projects unable penetrating noise.

Mid-year sentiment shifted. Participants weren't hostile; simply exhausted.

"Mullet Architecture" Emergence in Financial Technology

The year's most humorous terminology became most descriptive. "DeFi mullet"—professional presentation, permissionless foundation. User interfaces increasingly resembled traditional fintech applications or brokerage platforms. Polished designs, complete KYC, regulatory adherence, support teams, comprehensive packages.

Backend infrastructure remained revolutionary. Stablecoin settlements. AMM liquidity. Tokenized T-bill yields. Permissionless systems handling operations while frontends maintained regulatory and customer satisfaction.

Though lacking glamour, it achieved scalability. Cryptocurrency became accessible beyond pure blockchain interfaces.

Regulatory Transformation

Bipartisan cryptocurrency legislation passing broadly? Suggesting that scenario previously would've prompted dismissal.

Nevertheless, it materialized, instantly recalibrating industry anticipations. Regulatory ambiguity plaguing American markets received clear direction. Banks obtained necessary stablecoin clarity. Leading financial institutions invested heavily in tokenization experiments. Entrepreneurs regained building confidence.

The legislation didn't eliminate all challenges. Industry shadows persisted alongside malicious actor risks. However, it accomplished something crucial: establishing trajectory.

For sectors battling regulators continuously, that single shift proved transformative.

Final Observations

2025 delivered unexpected rather than anticipated outcomes, yet provided meaningful progress. Stablecoins, RWAs, and ETFs advanced cryptocurrency's mainstream finance integration, while retail fatigue and perpetual dilution suppressed sentiment dramatically. Our conversations clarify one point: no singular narrative dominated. Advancement and challenges occurred simultaneously.

The key insight reveals cryptocurrency transcends single narratives or market cycles. It combines regulated infrastructure, permissionless systems, geopolitical influences, and practical adoption pulling multiple directions. Markets didn't soar, but 2025's foundations will determine future trajectories.