CRYPTO ADOPTION AND USAGE SURGE TO RECORD LEVELS EVEN AS PRICES DECLINE IN Q4
Ethereum’s price weakened during the fourth quarter of 2025 even as on-chain activity reached new highs, according to a report by Bitwise. The firm’s Chief Investment Officer, Matt Hougan, noted that similar disconnects between price and usage have appeared at previous market turning points, where prices often bottom as participation and adoption continue to expand.
Industry Revenues Rise While Crypto-Related Stocks Fall
Bitwise’s analysis also highlighted a broader trend across the crypto sector in 2025. While crypto-related equities declined, industry revenues grew faster than most other sectors. The research showed that price weakness coincided with rising transaction volumes and tokenized real-world assets reaching all-time highs, underscoring a widening gap between market valuations and underlying activity.
Stablecoin Usage Hits Record Levels
Stablecoin adoption continued to accelerate throughout 2025. Data from Arkham Research showed that the stablecoin market expanded significantly in October, with daily average transaction volumes climbing to record levels. Despite subdued token prices, stablecoins played an increasingly central role in payments and transfers, reflecting sustained demand for blockchain-based financial infrastructure.
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On-Chain Activity Grows Even as Prices Lag
Crypto markets are showing a growing divergence between usage and prices. On-chain activity and protocol revenues are climbing, while token valuations remain under pressure. This trend suggests that user engagement and real economic activity continue to grow even amid cautious market sentiment.
Tron Sees Record Revenue but Token Price Stalls
According to Messari data, the Tron network processed trillions of dollars in stablecoin transactions during 2025 and captured a large share of global retail transfers under $1,000. The network posted record revenue in the third quarter. However, despite strong fundamentals, Tron’s native token traded largely flat throughout the year, reflecting the broader disconnect between usage and price performance.
Decentralized Exchanges Gain Market Share
Decentralized exchanges continued to gain traction over centralized platforms in 2025. Daily DEX trading volumes surpassed major centralized exchanges by mid-year, marking a significant shift in trading behavior. Uniswap led the sector, processing billions of dollars in daily volume, accumulating substantial total value locked following the launch of Uniswap v4, and generating nearly $1 billion in fees year-to-date through October.
Coinbase has since expanded its integration of decentralized trading by routing user orders through aggregators that tap into Uniswap’s liquidity, further bridging the gap between centralized and decentralized finance.
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Historical Parallels Point to Potential Recovery
Bitwise compared the current market environment to early 2023, when strong fundamentals preceded a multi-year rally. While prices remain under pressure, stablecoin usage, network revenues, and infrastructure investment continue to grow. Ethereum traded near its long-term average and well below its late-2025 peak, with analysts suggesting that supply constraints and ongoing network expansion could support a rally in 2026. However, the timing of any price recovery remains uncertain.
