As cryptocurrency enters its “mainstream dawn” in 2025, with the U.S. GENIUS Act establishing clear stablecoin regulations, traditional institutions are increasingly adopting digital assets. This marks a significant shift from the past decade’s landscape.
Early-stage venture capital is now observing more crypto-adjacent projects—those incorporating blockchain technology within larger traditional sectors—rather than purely crypto-native ventures built by and for cryptocurrency experts. This transition represents a first in the industry’s evolution.
Crypto-native platforms like Hyperliquid, Uniswap, and Aave have historically succeeded by catering to a niche, risk-tolerant user base. However, their total addressable market (TAM) remains limited compared to traditional sectors. Successful crypto-native products typically show extreme power-law distribution in usage, with a tiny fraction of users generating most activity.
The emerging crypto-adjacent sector demonstrates different dynamics. Examples include:
– Fintech firms utilizing stablecoins for cross-border payments
– Robotics companies employing DePIN incentives for data collection
– Consumer goods companies implementing zkTLS for private data verification
These ventures treat cryptocurrency as a feature rather than the core product. Their success depends less on crypto expertise and more on traditional business fundamentals like distribution channels and unit economics.
For venture capitalists, this shift demands new evaluation criteria. Successful crypto-adjacent founders often differ from their crypto-native counterparts, typically possessing deeper industry-specific knowledge rather than pure blockchain expertise.
Key insights for entrepreneurs:
1. Timing and market positioning are critical in crypto-adjacent ventures
2. Consumer applications should focus on profitability rather than VC funding
3. Emerging markets present unique opportunities for stablecoin banking solutions
4. Physical proximity to target markets provides competitive advantage
This transition reflects cryptocurrency’s maturation as it integrates with traditional financial systems and business models.
