Major institutional investors are revaluing digital assets while entering cryptocurrency markets, resulting in sharp 2025 losses for DeFi tokens and smart contract platforms despite growing regulatory clarity.
Jamie Coutts, chief crypto analyst at Real Vision, stated that 2025 marked a repricing period for top-tier protocols as institutional capital began its multiyear onboarding process. Smart contract blockchain tokens posted a 66% average loss while DeFi assets declined 67%, with Bitcoin emerging as the sole major performer during the year.
Blockchain networks with organic usage and revenue generation attracted capital flows, according to Coutts. Solana generated $585 million in fees to lead all blockchains by that metric, while Tron recorded $576 million in revenue during 2025, data from Nansen showed.
Nicolai Sondergaard, research analyst at Nansen, noted that institutional players gravitate toward the five leading cryptocurrencies. Solana exchange-traded funds continued receiving inflows, though on-chain activity told a different story. Some investors rotated from Bitcoin into Ethereum, with both on-chain and off-chain data supporting accumulation patterns among large players, Sondergaard told Cointelegraph.
Wall Street firms launched regulated cryptocurrency investment products throughout 2025 despite market losses. Morgan Stanley filed Tuesday for two ETFs tracking Bitcoin and Solana, then submitted a third application for an Ethereum fund on Wednesday.
Read more: coinmarketcap.com
Source: CRYPTO WORLD NETWORK NEWS
