Key Takeaways
- • Andreessen Horowitz's a16z crypto team identifies five metrics it will track in 2025: monthly mobile wallet users, adjusted stablecoin transaction volume, Bitcoin and Ethereum ETP net flows, DEX-to-CEX spot trade volume, and total transaction fees as a measure of blockspace demand.
- • Monthly mobile wallet users reached an all-time high of more than 35 million in the latest month, driven by Coinbase Wallet, MetaMask, Trust Wallet, Phantom and World App.
- • Per the article, Bitcoin ETPs have recorded 515,000 BTC in net flows (about $110B in onchain holdings) and Ether ETPs 611,000 ETH (about $13B), with net flows used as a proxy for institutional demand.
- • Solana collected more transaction fees than Ethereum for the first time in November 2024, even though sending USDC costs about $5 on Ethereum versus under one cent on Solana.
- • The article positions stablecoins, ETP distribution through firms such as Goldman Sachs, JP Morgan and Merrill Lynch, and DEX growth on chains like Base and Solana as the key drivers to monitor.
Summary
A16z crypto has published a list of five metrics it will monitor through 2025, framing 2024 as a record year for the industry in which crypto activity and usage hit all-time highs, blockchain infrastructure lowered transaction fees, stablecoins found product-market fit, and Bitcoin and Ethereum exchange-traded products were approved by the U.S. Securities and Exchange Commission.
The first metric is monthly mobile wallet users, which the firm views as the route to converting hundreds of millions of passive crypto holders into active users. According to the article, mobile wallet users crossed 35 million for the first time in the most recent month, with growth led by Coinbase Wallet, MetaMask and Trust Wallet, and newer entrants Phantom and World App. The article notes that balancing security, privacy and usability remains a central challenge for builders.
The second metric is adjusted stablecoin transaction volume. The article says stablecoins are used for cross-border payments, remittances, commerce and as a store of value in high-inflation economies, and that they are already the cheapest way to send a dollar. Because bots and artificial activity inflate raw onchain figures, a16z cites Visa's methodology, which adjusts for inorganic activity, as the basis for measuring genuine usage.
The third metric is net flows into Bitcoin and Ethereum ETPs. The article reports 515,000 BTC in net flows, corresponding to about $110 billion in onchain holdings, and 611,000 ETH in net flows, corresponding to about $13 billion. It excludes pre-existing products such as the Grayscale Bitcoin and Ethereum Trusts, which were later converted to ETPs. The firm expects distributors including Goldman Sachs, JP Morgan and Merrill Lynch to take time to bring these products to retail portfolios, and it tracks custodian deposits and withdrawals onchain in real time.
The fourth metric compares decentralized and centralized spot trading volume. DEXs hold roughly 11% of spot trading, a share that has grown steadily, and DEX volume recently reached an all-time high, driven by high-throughput chains such as Coinbase's Base and Solana.
The fifth metric is total transaction fees as a measure of blockspace demand. The article says aggregate USD fees reflect the real economic value of a chain, while unit transaction costs also need to be considered. It notes that Solana collected more fees than Ethereum for the first time in November 2024, despite sending USDC costing about $5 on Ethereum versus less than one cent on Solana. The firm calls blockspace demand potentially the single most important metric for tracking industry progress over the long run.
The first metric is monthly mobile wallet users, which the firm views as the route to converting hundreds of millions of passive crypto holders into active users. According to the article, mobile wallet users crossed 35 million for the first time in the most recent month, with growth led by Coinbase Wallet, MetaMask and Trust Wallet, and newer entrants Phantom and World App. The article notes that balancing security, privacy and usability remains a central challenge for builders.
The second metric is adjusted stablecoin transaction volume. The article says stablecoins are used for cross-border payments, remittances, commerce and as a store of value in high-inflation economies, and that they are already the cheapest way to send a dollar. Because bots and artificial activity inflate raw onchain figures, a16z cites Visa's methodology, which adjusts for inorganic activity, as the basis for measuring genuine usage.
The third metric is net flows into Bitcoin and Ethereum ETPs. The article reports 515,000 BTC in net flows, corresponding to about $110 billion in onchain holdings, and 611,000 ETH in net flows, corresponding to about $13 billion. It excludes pre-existing products such as the Grayscale Bitcoin and Ethereum Trusts, which were later converted to ETPs. The firm expects distributors including Goldman Sachs, JP Morgan and Merrill Lynch to take time to bring these products to retail portfolios, and it tracks custodian deposits and withdrawals onchain in real time.
The fourth metric compares decentralized and centralized spot trading volume. DEXs hold roughly 11% of spot trading, a share that has grown steadily, and DEX volume recently reached an all-time high, driven by high-throughput chains such as Coinbase's Base and Solana.
The fifth metric is total transaction fees as a measure of blockspace demand. The article says aggregate USD fees reflect the real economic value of a chain, while unit transaction costs also need to be considered. It notes that Solana collected more fees than Ethereum for the first time in November 2024, despite sending USDC costing about $5 on Ethereum versus less than one cent on Solana. The firm calls blockspace demand potentially the single most important metric for tracking industry progress over the long run.
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