KEYTAKEAWAYS
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Web3 is moving beyond speculative hype, with Bitcoin and Ethereum regaining dominance while capital flows toward projects with proven teams, MVPs, and cash flow models.
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Regulation through frameworks like the GENIUS Act and MiCA, combined with institutional adoption and user demand for safety and compliance, is reshaping the industry.
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Stablecoins and AI-driven micropayments are becoming the backbone of the next phase, with settlement volumes rivaling SWIFT and traditional finance integrating more deeply with crypto.
CONTENT
Back in 2021, the crypto conversation was filled with the buzz of “DeFi,” “NFTs,” and “yield farming.” Investors chased the next 100x coin, while memecoins spread like wildfire before collapsing just as fast. Four years later, the keywords have changed. The talk is now about “stablecoins,” “compliance,” and “cross-border payment.” Bitcoin’s market dominance has risen from around 39% in 2022 to 59.3% in 2025, signaling capital crowding back into the strongest assets. This is not a retreat but the mark of a new stage: speculative bubbles giving way to rational growth, and a culture of what insiders call “BenFen” — sticking to fundamentals.
INDUSTRY TRANSFORMATION: THREE SHIFTS FROM FRENZY TO RATIONALITY
The industry’s rhythm has slowed, but in a purposeful way. The era of hype-driven surges is fading, replaced by a search for stability and sustainability.
Bitcoin and Ethereum have reaffirmed their dominance, while long-tail altcoins and memecoins struggle to hold momentum. The Pepe frenzy in 2023 pushed its market cap to $1.5 billion by late 2024, only to fall back under $700 million months later. It was a reminder: narrative alone cannot sustain value.
Capital is concentrating at the top. Speculative projects are harder to maintain, and investors are turning back to fundamentals. Venture capital tells the same story. The fundraising boom of 2022 collapsed in 2023, and while capital returned in 2024–2025, the targets looked very different. Investors now demand solid teams, working MVPs, and clear cash flow models. Purely narrative-driven experiments no longer draw serious money.
DRIVING FORCES: REGULATION, CAPITAL, AND USER DEMAND
Three forces are pushing Web3 into its fundamentals era: regulation, capital, and user demand.
Regulation is rewriting the rules of the game. The U.S. GENIUS Act, the EU’s MiCA, and Hong Kong’s stablecoin licensing regime all share one core idea: protect investors and increase transparency. The GENIUS Act forces stablecoin issuers to back tokens with 100% highly liquid reserves and publish reserve data monthly. MiCA requires licenses, capital buffers, and liability for client losses.
Capital markets are reshaping as well. Early-stage funding has dried up, but institutional capital is finding other doors. Big investors are moving into public markets and listed companies. Pantera, for instance, set aside $300 million for digital asset treasury firms—companies adding Bitcoin and Ethereum to balance sheets and offering returns different from ETFs or direct holdings.
User demand has matured. In 2021, people rushed into high-yield DeFi pools, viral NFTs, and jackpot GameFi projects. By 2025, the appetite is for basics: fast payments, safe custody, and the certainty of compliance.
FUTURE OUTLOOK: THREE DIRECTIONS IN THE FUNDAMENTALS ERA
Stablecoins are becoming the backbone of the new system. Artemis data shows global stablecoin settlements hit $5.1 trillion in December 2024—triple 2023 levels and 22 times those of 2021. VanEck estimates they now process $100 billion daily, rivaling SWIFT’s cross-border payment volume. On-chain data confirms the shift: stablecoins make up between 50% and 75% of all transactions, cementing themselves as crypto’s most important asset class.
The bridge between crypto and traditional finance is also getting stronger. By mid-2025, over 100 listed companies worldwide held Bitcoin, together owning around 1 million BTC—worth $110 billion and 4.7% of supply. Eleven institutions hold 2.98 million ETH, or 2.5% of supply. Capital is flowing in through ETFs, balance sheets, and treasury strategies, showing institutional adoption at scale.
AI may take this transformation even further. At the HKU Crypto Finance Forum in 2025, CZ argued that AI Agents will require high-frequency, low-value payments, which traditional finance cannot support. Digital currencies can settle instantly and cheaply, making them a natural fit. In the future, people may own hundreds of AI Agents, generating transaction volumes thousands of times greater than today.
Regulatory clarity is reinforcing this trajectory. The U.S., EU, and Asia are building frameworks that remove barriers for institutional capital. Wall Street is seeing the rise of digital asset treasury firms backed by billions from investors like Stan Druckenmiller, Bill Miller, and ARK Invest. These firms are valued not by hype but by balance sheets and cash flow.
Web3 is no longer the playground of speculators but the soil where builders take root. The focus has shifted from chasing the latest shiny trend to building real infrastructure. As the BenFen chain puts it: “Do not chase the wind, strengthen the base.”
