Original author: James Wo, Founder CEO, DFG
DFG was proud to sponsor and attend ETHDenver 2025, which attracted approximately 25,000 attendees, down from previous years. Despite market challenges, the event demonstrated a resilient Web3 ecosystem with builders focused on sustainable, real-world applications in the areas of AI, interoperability, and next-generation dApps. Investors remained active, but they prioritized fundamentals, realistic valuations, and utility-driven projects in AI, RWA, DeFi, and institutional infrastructure. ETHDenver 2025 highlighted the industry’s shift toward long-term vision, innovation, and sustainability over speculation.
Overall market sentiment
Despite ongoing macroeconomic concerns, such as trade tensions between the United States, China, Canada, and Mexico, ETHDenver 2025 attendees were largely undeterred and optimistic about the long-term outlook. Many pointed to expected regulatory clarity and increasing institutional adoption as key catalysts for sustainable growth in the space. Meanwhile, speculative memecoin mania has cooled significantly, with many in the community openly criticizing its impact. Memecoin drained liquidity from more meaningful projects, diverted attention from innovation, and operated in an inherently extractive manner, ultimately hindering the development of the broader ecosystem.
On the altcoin side, market sentiment appears to be at its lowest point in recent years, with valuations severely depressed. This environment has led startups to further delay token launches as teams wait for more favorable market conditions before taking action. However, rather than focusing on short-term token launches, many developers are turning their attention to developing the next generation of Web3 applications that can drive real adoption. This is consistent with the broader industry recognition that long-term success will depend on the utility and usability of decentralized applications rather than speculative trading.
One of the most exciting aspects of the event was the marriage of blockchain and AI. Many attendees expressed optimism about the synergy between the two technologies, citing AI-driven smart contracts, decentralized AI models, and blockchain-based data verification as promising use cases that are expected to drive the next wave of innovation. This continued enthusiasm shows that while speculative narratives may come and go, the focus on tangible progress and real-world applications remains strong.
Builders Viewpoint
Despite the lackluster market performance, ETHDenver 2025 still demonstrated a strong builder spirit, with many teams continuing to develop products focused on profitability and long-term sustainability. This mentality fits well with the theme of the Year of Regeneration, which emphasizes creating a renewable, self-sustaining ecosystem rather than chasing speculative hype. Instead of prioritizing short-term gains, projects are more focused on revenue generation and business viability, ensuring that their innovations can thrive regardless of market cycles.
A major shift in builders’ strategies is the recognition that multi-chain deployment is now a necessity, not an afterthought. Interoperability, once considered a major technical hurdle, is no longer seen as a constraint, but a necessary feature for long-term success. Some teams are adopting cross-chain solutions to maximize their reach, liquidity, and usability across different blockchain ecosystems.
AI and agent-based applications remain major themes, but the focus has evolved from speculative excitement to tangible utility. Builders are now working on developing infrastructure and real-world products that leverage the benefits of blockchain, such as verifiability, privacy, interoperability, and scalability, to enhance AI-driven applications. This shift suggests that the intersection of AI and blockchain is moving from theoretical possibilities to practical implementations.
Another notable trend is the growing participation of Web2 players in these events. More and more traditional venture capitalists, legal professionals, AI developers, and academics are participating in the Web3 space, bringing valuable expertise and new perspectives. Their participation shows that people are increasingly aware of the potential of blockchain beyond their native industries, promoting collaboration between traditional technologies, regulatory frameworks, and decentralized innovation.
VC Perspective
At ETHDenver 2025, VCs showed a strong focus on key areas that are expected to achieve long-term growth, including AI, RWA, DeFi, stablecoins, and institutional infrastructure. These areas became the focus of discussion as investors looked for projects with tangible use cases and sustainable business models. Unlike previous cycles driven by hype, investors have clearly shifted to prioritizing strong fundamentals and real token utility. Investors are now more discerning and seek projects that provide real value rather than speculative gains.
While many VCs are still actively deploying capital, they are doing so with greater caution given the uncertain macroeconomic environment and pessimism in the altcoin market. This caution is reflected in more rigorous due diligence processes and a preference for teams with clear roadmaps, revenue models, and regulatory compliance strategies. With altcoin valuations at low levels, investors are also expecting more realistic investment terms, favoring deals that reflect current market conditions rather than the high valuations seen in previous cycles. This recalibration suggests that the market is maturing, with disciplined capital allocation and long-term vision taking precedence over short-term speculation.
DFG activities
As the Meta sponsor of ETHDenver 2025, DFG seized the opportunity to engage with builders, investors, and industry leaders - both at our booth and through carefully curated side events. This year, we took it a step further and hosted two exclusive gatherings: the Founders VCs Brunch and Proof of Brew: Tasting the Crypto beer event, reuniting with portfolio companies and building new relationships across the ecosystem.
On February 26th, the Founders VCs Brunch co-hosted with NEAR and Jsquare was a huge success, attracting more than 350 high-caliber guests and exceeding the capacity. The atmosphere was lively as projects and investors discussed emerging trends such as AI, RWA, and DePIN in depth. Our investment team held one-on-one meetings with carefully selected projects, evaluated high-potential investment opportunities, and reinforced our commitment to supporting visionary founders who can shape the future of Web3.
DFG also co-hosted the Proof of Brew: Tasting the Crypto beer event with ZetaChain, CoinList, and Jsquare on February 28. From craft beer to engaging Web3 discussions, we made meaningful connections and shared exciting insights.
I am excited to participate in the March 1st investment roundtable The Next Billion Dollar Ideas Are Already Here to discuss the development of DeFi and highlight key innovations and areas for improvement. I am also excited to share three key investment principles for cryptocurrencies with investors!
During the four-day ETHDenver event, DFG’s investment and marketing teams interacted with hundreds of visitors at our booth, sharing our background, investment philosophy, and long-term vision for the Web3 ecosystem.
At the DeFi World 2025 conference on February 26, DFG and Jsquare CMO Angela Tong explored the future of blockchain infrastructure and scaling solutions with other roundtable members, discussing innovations in L2, modular chains, and interoperability.
See you next year, ETHDenver!
ETHDenver 2025 brought together builders, investors, and industry leaders to explore the next phase of blockchain innovation. While the market continues to evolve, the event reinforced a key shift - prioritizing long-term sustainability over short-term speculation. From infrastructure and AI to real-world assets and institutional adoption, the focus has shifted from hype to meaningful progress in shaping the future of Web3.
At DFG, we remain committed to supporting the Ethereum ecosystem and investing in the protocols, infrastructure, and innovations that shape the future of Web3. As the industry matures, we believe fundamental value creation and utility will determine the next wave of growth. ETHDenver 2025 has made it clear: builders are here to stay, and the future of blockchain will be built on strong, sustainable foundations.
About DFG
Digital Finance Group (DFG) is a global leading Web3 investment and venture capital firm founded in 2015. DFG manages over $1 billion in assets and invests in different areas of the blockchain ecosystem. Our portfolio has invested in more than 100 pioneering projects including Circle, Ledger, Coinlist, Near, Solana, Render Network, ZetaChain, etc.
At DFG, we are committed to creating value for our portfolio companies through market research, strategic consulting and sharing our vast resources globally. We are actively working with the most transformative and promising blockchain and Web 3.0 projects that are poised to revolutionize the industry.
DFG website: https://dfg.group
DFG Twitter: @DFG__Official
DFG LinkedIn: DFG
