Mid-Year Review: 5 Key Indicators Reflect Strong Momentum in the Encryption Industry

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Mid-Year Assessment of the Development Status of the Encryption Industry: Analysis of Five Key Indicators

The encryption industry is moving towards a mature stage. At the end of last year, we proposed five core indicators to track the growth and development of the industry by 2025. Now, let's take a look at the mid-year performance of these indicators, the driving factors, and their importance.

Key Indicators Overview

  • Monthly active mobile wallet users: increased by 23%
  • Adjusted stablecoin trading volume: up 49%
  • Bitcoin and Ethereum ETP net fund inflows: up 28%
  • The ratio of spot trading volume of decentralized exchanges to centralized exchanges: an increase of 51%
  • Total transaction fees (block space demand): decreased by 43%
  • The number of tokens with a monthly net profit of over one million dollars: 22

a16z: 5 Key Metrics Reveal the Encryption Market Status

1. Monthly Active Mobile Wallet Users: Increased by 23%

  • Average in 2025: 34.4 million
  • Average in 2024: 27.9 million

Importance Analysis

The wallet infrastructure has significantly improved, including low transaction fees, new account abstraction protocols (such as EIP-7702), and embedded wallet products. This has created favorable conditions for the development of the next generation of mobile wallets.

Industry Trends

A large payment company recently acquired a leading wallet infrastructure provider, demonstrating the importance that traditional financial institutions place on encryption wallet technology.

a16z: 5 Key Metrics Reveal the State of the encryption Market

2. Adjusted Stablecoin Trading Volume: Increased by 49%

  • Average monthly in 2025: 702 billion USD
  • Average monthly in 2024: 472 billion USD

Importance Analysis

Stablecoins have successfully achieved product-market fit. Now, we can transfer USD value at extremely low costs and high speeds, making stablecoins an ideal payment tool. Major financial institutions are actively embracing this opportunity.

Industry Dynamics

  • A well-known stablecoin issuer successfully listed on the New York Stock Exchange.
  • Several payment giants have strengthened their support for stablecoins.
  • A certain social media giant is reportedly exploring the introduction of stablecoins as a payment method.

a16z: 5 Key Indicators Reveal the Current State of the encryption Market

3. Bitcoin and Ethereum ETP net inflows: Growth of 28%

  • June 2025: Total of $45 billion (Bitcoin $42 billion, Ethereum $3.4 billion)
  • By the end of 2024: Total of $35 billion (Bitcoin $33 billion, Ethereum $2.4 billion)

Importance Analysis

Institutional capital is entering the encryption field on a large scale, marking the overall maturity of the industry. As the regulatory framework gradually becomes clearer, coupled with core issuing institutions successively launching related businesses, the net inflow of funds into exchange-traded products (ETPs) is expected to continue to grow.

Industry Trends

The U.S. Securities and Exchange Commission recently required a certain encryption asset's spot ETF applicants to update their S-1 filing materials, suggesting that such ETFs may soon be approved.

a16z: 5 Key Metrics Reveal the Current State of the encryption Market

4. The proportion of spot trading volume of decentralized exchanges to centralized exchanges: an increase of 51%

  • Average monthly share in 2025: 17%
  • Average monthly share in 2024: 11%

Importance Analysis

As more users enter the encryption world, the usage ratio of decentralized exchanges is expected to gradually surpass that of centralized exchanges. This trend reflects the overall development of the DeFi ecosystem.

Industry Trends

A large cryptocurrency exchange platform recently announced that it will natively support decentralized exchange trading within its app, which will open up thousands of new asset trading pairs to users.

a16z: 5 Key Indicators Reveal the encryption Market Status

5. Total Transaction Fees (Block Space Demand): Decreased by 43%

  • Average monthly in 2025: $239 million
  • Average monthly in 2024: $439 million

Importance Analysis

The total transaction fee denominated in US dollars reflects the overall demand for block space on a specific blockchain, which is the actual economic value. However, since most projects are striving to reduce user fees, this metric involves multiple complex factors. Therefore, it is also important to focus on the unit transaction cost, which is the cost of consuming a specific amount of blockchain resources. Ideally, the total fee should continue to grow, while the unit resource consumption cost remains low.

Industry Discussion

Recently, there has been extensive discussion on social media regarding the importance of this indicator (and related indicators such as REV).

Additional Focus Indicators

The number of tokens with a monthly net profit exceeding 1 million USD: As of June 2025, there are only 22.

With the new regulatory environment and the implementation of upcoming market structure regulations, the path for tokens to complete an economic closed loop is becoming increasingly clear. This will drive more projects to return value directly to token holders in the form of earnings, thereby building a healthier token economic system.

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TokenDustCollectorvip
· 07-19 17:45
It seems that the sweeping monk can pick up big coins again.
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CommunitySlackervip
· 07-18 13:59
Bull to da mooning
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down_only_larryvip
· 07-16 22:42
The price has risen again. I will continue to buy the dip.
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ForkMastervip
· 07-16 22:27
Watching the rise rise rise, I'm just afraid that behind it is a gathering of data-manipulating suckers.
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Blockwatcher9000vip
· 07-16 22:24
It's rising again, damn it.
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GraphGuruvip
· 07-16 22:22
Welcome the bull run but do not engage in Cryptocurrency Trading.
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