RT Incrypted (@incrypted)CEO Trust Wallet: Crypto Market and TradFi Moved from Competition to Mutual DependenceIncrypted gathered opinions from crypto industry participants by asking them three questions about last year’s key narratives, future trends, and visions for new products. CEO of @TrustWallet @EowynChen shared her assessments, outlining the market transformation in 2025 and expectations for 2026.According to her, 2025 was a period of convergence and growing maturity for the entire industry. She emp ...

Core Insights - The digital asset market experienced exceptional performance in 2025, with Bitcoin reaching new all-time highs and a more constructive discourse surrounding crypto compared to the downturn of 2022-2023 [1] - CoinShares emphasizes that focusing solely on price action overlooks significant advancements in the digital asset industry [2] - Digital assets are increasingly integrated within the traditional financial system, enhancing core financial infrastructure rather than attempting to replace it [3] Industry Progress - The industry matured in 2025, shifting focus from speculative activities to protocols and applications that provide measurable real-world utility [4] - Practical integrations, such as Chainlink's role in connecting blockchain networks with established providers, are seen as more indicative of market evolution than speculative cycles [5] - Consumer-level applications like prediction markets (e.g., Polymarket and Kalshi) are achieving product-market fit, becoming operational and regulated [6] Future Outlook - Looking ahead to 2026, CoinShares suggests that adoption will be a more significant driver than macroeconomic catalysts, despite expectations for renewed liquidity from the Federal Reserve [7] - App-based retail savings products may start competing with bank deposits, while fintechs and banks expand services related to stablecoin settlement, custody, and trading [8]

Core Insights - Investors have invested nearly $25 billion into crypto companies in 2025, exceeding last year's figures by over 150% and surpassing market expectations [1] - Major players in the investment landscape include Paradigm, Sequoia Capital, BlackRock, JP Morgan, and Goldman Sachs [1] - The leading sectors attracting investment are centralized exchanges ($4.4 billion), prediction markets ($3.2 billion), and DeFi platforms ($2.9 billion) [1] Investment Trends - Projects that are attracting capital are those that demonstrate regulatory clarity, operational resilience, and the ability to integrate with traditional finance (TradFi) institutions [2] - Investors are favoring durable, compliance-first businesses that aim to establish a long-term foundation for the crypto asset class [2] - The crypto market is evolving, with capital shifting towards mature players whose revenue and unit economics justify their valuations [3] Market Maturity - The current market reflects normalization and maturation, with fundraising becoming more rational and aligned with fundamentals rather than speculative behavior [4] - The crypto market is following a pattern similar to other technology cycles, where capital first flows into foundational infrastructure before moving to consumer-facing applications [5] Notable Fundraising Events - Binance raised $2 billion in March, led by MGX, marking a significant milestone for both the crypto industry and Binance [6] - Polymarket secured $2 billion in funding in October, led by Intercontinental Exchange, valuing the platform at approximately $8 billion [7]

Market Dynamics - The market has matured significantly, demonstrated by its ability to absorb large Bitcoin (BTC) sales that would have previously caused market crashes [1] - Sales of 2,000 BTC no longer have a significant impact on the market [1] - Billion-dollar sales are now absorbed with ease [1] - Movement of coins from old wallets barely registers in the market [1]

Market Dynamics - As markets mature, assets tend to find their distinct roles [1] - The next phase usually brings specialized products for each use case [1] Cryptocurrency Flows - ETH positions are getting concentrated in yield-seeking strategies [1] - Daily ETF flows for ETH exceed $300 million [1] - A single player has accumulated 222 thousand ETH [1] - BTC flows are heading straight to long-term holdings [1] - BTC in treasuries amounts to 725 thousand, representing a 3x yearly growth [1]

when markets mature, players naturally pick lanes instead of competing head-onbtc dominates corporate treasuries with $17.7b added in q2eth owns the staking economy at 28.8% ratiosol captured 8.1% of global perpsusdc pursuing banking license for reservesnext phase: specialized products built on top of each ...