A new generation of Bitcoin investors
The stagnating prices in the crypto market stand in stark contrast to the constant stream of all-time highs for gold and stocks. Demand isn't the problem: over a billion dollars of fresh capital flows into Bitcoin every day. So whatās really going on? Find out in this Market News. Weāll also take a look at the venture capitalist 1kx report on the crypto economy.
Market update
Over the past twelve months, $450 billion in new capital has entered the Bitcoin market. This is reflected in the increase in realized value in on-chain data. At an average rate of $1.3 billion per day, new investors are adding Bitcoin to their portfolios for the first time, while existing investors are expanding their positions.
Naturally, that means existing holders are cashing out profits of about $1.3 billion per day. The round figure of $100,000, in both dollars and euros, has long been a target price for some. Thanks to the liquidity now available through ETFs and regulated derivatives markets, the big players finally have room to exit.
We are witnessing the biggest rotation the crypto market has ever seen. The "class of 2025" is a different kind of investor than previous generations. This type of investor goes from 0% crypto to 1% or perhaps 5% and is immune to memes about the four-year cycle or alt season. They're not jealous of gold or stocks ā after all, they already have those in their portfolios.
In November 2024, we reached ā¬93,000 for the first time ā the same price as today. So have we really made no progress then? On the contrary, we are $450 billion closer to the point where the old guard will make way for a new one. This includes publicly traded companies, sovereign wealth funds, and millions of private investors for whom ā¬100,000 isn't a goal, but a starting point.
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Crypto: from hype to revenue
What began years ago as a world of speculation and expensive transactions has grown into a digital economy with real businesses, real users, and real revenue. This is evident inĀ a new report from venture capitalist 1kx, which examined more than 1,200 protocols. The conclusion: theĀ on-chainĀ economy is maturing.
In the first half of 2025, users paid $9.7 billion in on-chain transaction fees, over 40% more than last year. For the year as a whole, that amounts to nearly $20 billion, ten times more than in 2020. And that's just the visible portion. If revenue from stablecoin issuers and exchanges is also included, 1kx estimates the total crypto economy is now worth $56 billion.
Source:Ā 2025 Onchain Revenue Report from 1kx
Whatās striking is where that money is being made. In 2021, more than 40% of all fees went to Ethereum; now that's less than 3%. The rest now flows to the layer above ā to DeFi protocols, wallets, consumer applications, and so-called DePIN networks. Ethereum is no longer the engine of the economy, but the rails it runs on.
The nature of that revenue is also changing. During the previous bull market, billions of "free" tokens were handed out to users to force growth. Now, protocols are actually distributing net value to their holders instead. In the third quarter, $1.9 billion was paid out through buybacks, burns, and other forms of profit distribution. That's a record, achieved without the artificial incentives of the past.
Yet, the market valuation of DeFi protocols is not yet where it should be. DeFi protocols generate the majority of revenue but represent less than 10 percent of the total market value. Blockchains, on the other hand, are still valued as if they were the only "nation states" of crypto, with price-to-fee ratios hundreds of times higher. For investors with an eye for fundamentals, that could look like a clear opportunity.
According to 1kx, this trend will accelerate in 2026. The company expects on-chain fees to grow to $32 billion, driven by growth in four areas: tokenized real-world assets, DePIN, wallets, and consumer applications. In other words, not the infrastructure layer, but the user layer, where real demand, activity, and cash flow converge.
Other news
AI tokens make a comeback thanks to new payment systems.Ā After months of weakness,Ā optimism is returning to this sector. Central to this are payment systems based on the x402 protocol, which can be used autonomously by AI agents. Virtuals, often seen as the home base for AI agents, is also benefiting. Its native Virtuals token rose 84% in a week, while the gains for the much younger and riskier x402 tokens, such as PayAI, reached 2000%.
Consensys prepares for IPO with JPMorgan and Goldman Sachs.Ā The maker of MetaMask has selected the two investment banks to lead its IPO,Ā reported Axios. Details about the size and timing are still unknown. It's notable that the plans coincide with the launch of tokens from Consensys projects such as Linea, MetaMask, and Infura. Consensys was valued at $7 billion in 2022.
PayPal integrates its wallet into ChatGPT.Ā Starting in 2026, users will be able to make purchases directly through the chatbot using their PayPal accounts. These are expected to involve regular fiat payments, although the collaboration has led to speculation about future crypto integration. For PayPal, it isĀ a smart move: the payment giant is nestling itself in the middle of the AI āāecosystem.
Tether to post record profits in 2025.Ā The issuer of the world's largest stablecoin already reportedĀ more than $10 billion in profit this year, largely thanks to interest income on US Treasuries. Analysts see Tether evolving into a financial powerhouse at the intersection of crypto and traditional markets. One thing is certain: Tether's grip on the global dollar economy is tightening.
Satoshi Radio: InĀ the latest episode of Satoshi Radio, the Dutch elections are viewed through a crypto lens. Has Polymarket once again claimed a significant role, just as it did during the US presidential election? You'll also get a tour of the latest news, including AIs trading independently and the dangers of quantum computers. Of course, the episode concludes with a comprehensive market update. What will the earnings season bring this time around?
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.