Crypto's 'Best Worst Quarter' Sees Record Growth in DeFi and Stablecoins
The first quarter of 2025 has seen a remarkable surge in the cryptocurrency sector, particularly in decentralised finance (DeFi) and stablecoins. Despite being dubbed 'The Best Worst Quarter in Crypto's History' by Bitwise, the period has witnessed significant growth and record-breaking milestones.
Venture capital funding for DeFi projects reached its second-highest level in the first quarter of 2025. Notably, two of the top 10 venture funding deals were DeFi-focused, indicating increased investor confidence in the sector. However, no specific institution was identified as significantly boosting funding during this period.
Stablecoins, cryptocurrencies pegged to the value of other assets, also experienced a boom. The total market capitalization of stablecoins climbed to $237 billion, with assets under management (AUM) reaching an all-time high of over $218 billion. Transaction volume rose by more than 30%, surpassing even VISA transactions in number. The total stablecoin supply surged by over $30 billion, nearing $250 billion.
Tokenized real-world assets (RWA) also saw a significant increase, with their value jumping to $19 billion in the first quarter of 2025, more than double the $9 billion recorded in Q1 2024. Demand for tokenized U.S. Treasuries surged to nearly $4.5 billion during this period.
The first quarter of 2025 has been a turning point for the cryptocurrency industry, with notable growth in DeFi projects, stablecoins, and tokenized real-world assets. Despite the quarter's mixed reputation, these developments signal a maturing and expanding market.
