Smart contract blockchain tokens saw an average loss of 66%, while DeFi assets declined by 67%, with Bitcoin becoming the only major player during the year.
Crypto News
Major institutional investors are revaluing digital assets as they enter cryptocurrency markets, leading to steep losses in 2025 for DeFi tokens and smart contract platforms despite increasing regulatory clarity.
Blockchain networks with organic usage and revenue generation have attracted capital flows, according to Coutts. Solana generated $585 million in fees to lead all blockchains by this metric, while Tron saw $576 million in revenue in 2025, according to Nansen data.
Wall Street firms have launched regulated cryptocurrency investment products throughout 2025 despite market losses. Morgan Stanley filed two ETFs following Bitcoin and Solana on Tuesday, then submitted a third application for an Ethereum fund on Wednesday.
Market forecasts for 2026 remain mixed. Jack Yi, founder of Hong Kong investment firm Trend Research, expressed an optimistic outlook for the first half of 2026. Fundstrat Global Advisors predicted Ethereum would bottom around $1,800 during the first quarter, although co-founder Tom Lee predicted a rally after markets set a sustainable low.
Lacie Zhang, market analyst at Bitget Wallet, said excess debt from 2024 has cleared and brought valuations to levels meeting institutional entry thresholds. The analyst told Cointelegraph that increased regulatory clarity combined with more regulated crypto ETFs and bipartisan legislative progress suggest that 2026 could shift from repricing to sustained accumulation driven by long-term institutional adoption.
BitMine Immersion Technologies, the largest holding company in Ethereum with $13 billion in stakes, is chaired by Lee. The concentration of institutional holdings in major assets reflects the repricing dynamics identified by analysts throughout 2025.
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