DFG's ETHDenver 2025 Review and Insights: Focus on Long-term Growth rather than Hype

Author: James Wo, Founder & CEO, DFG

DFG is honored to sponsor and participate in ETHDenver 2025, which attracted approximately 25,000 attendees, a decrease from previous years. Despite market challenges, the event demonstrates a resilient Web3 ecosystem where builders focus on sustainable, real-world applications in AI, interoperability and next-generation dApps. Investors are still active, but they prioritize fundamentals, realistic valuations and practically driven projects in AI, RWA, DeFi and institutional infrastructure. ETHDenver 2025 highlights the industry’s shift towards long-term vision, innovation and sustainability rather than speculation.

Overall market sentiment

Despite ongoing macroeconomic concerns such as trade tensions between the United States, China, Canada and Mexico, ETHDenver 2025 participants were largely unhindered and were optimistic about the long-term outlook. Many pointed out that expected regulatory clarity and increasing institutional adoption are key catalysts for sustainable growth in the field. Meanwhile, the speculative memecoin fanaticism has cooled significantly, with many in the community publicly criticizing its impact. Memecoin drains the liquidity of more meaningful projects, diverts attention from innovation, and operates in its inherently retrieable ways, ultimately hindering wider ecological development.

On the Altcoin side, market sentiment appears to be at its lowest point in recent years, with a severely sluggish valuation. This environment has led to further delays in issuing tokens as teams wait for more favorable market conditions before taking action. However, instead of focusing on short-term token issuance, many developers turn their attention to developing next-generation Web3 applications that can drive real adoption. This is consistent with a broader industry awareness that long-term success will depend on the practicality and availability of decentralized applications, rather than speculative trading.

One of the most exciting things about this event is the combination of blockchain and AI. Many participants expressed optimism about the synergy between the two technologies, believing that AI-driven smart contracts, decentralized AI models and blockchain-based data verification are promising use cases that are expected to drive the next wave of innovation. This persistent enthusiasm suggests that while speculative narratives may come and go, the focus on tangible progress and real-world applications remains strong.

Builders Views

Despite the bland market performance, ETHDenver 2025 still demonstrates a strong builder spirit, and many teams continue to develop products focused on profitability and long-term sustainability. This mentality is very consistent with the theme of "Year of Regeneration", emphasizing the creation of a renewable, self-sustainable ecosystem rather than chasing speculation. Projects no longer prioritize short-term gains, but focus more on revenue generation and business viability, ensuring that their innovations thrive regardless of market cycles.

A major shift in builders’ strategy is the recognition that multi-chain deployment is now necessary, not later thoughts. Once considered a major technical barrier, interoperability is no longer seen as a constraint, but a necessary function for long-term success. Some teams are adopting cross-chain solutions to maximize their coverage, liquidity and availability across different blockchain ecosystems.

AI and agency-based applications remain the main topics, but the focus has evolved from speculative excitement to tangible utility. Builders are now working on developing infrastructure and real-world products, leveraging the advantages of blockchain such as verifiability, privacy, interoperability, and scalability to enhance AI-powered applications. This shift shows that the intersection of AI and blockchain is shifting from theoretical possibilities to practical implementation.

Another notable trend is the increasing participation of Web2 participants in these activities. More and more traditional venture capitalists, legal professionals, AI developers and academics are participating in the Web3 field, bringing valuable expertise and new perspectives. Their participation shows an increasing recognition of the potential of blockchain outside its homegrown industries, fostering collaboration between traditional technologies, regulatory frameworks and decentralized innovation.

VC Viewpoint

At ETHDenver 2025, VCs show strong attention to key areas that are expected to achieve long-term growth, including AI, RWA, DeFi, stablecoins and institutional infrastructure. These areas have become the focus of discussion as investors look for projects with tangible use cases and sustainable business models. Unlike previous hype-driven cycles, investors have clearly turned to prioritizing strong fundamentals and real token utility. Investors are now more insightful and seeking projects that provide real value rather than speculative returns.

While many venture capital firms are still actively deploying capital, they do so more cautiously, given the uncertain macroeconomic environment and the pessimism of the Altcoin market. This caution is reflected in a stricter due diligence process and preference for teams with a clear roadmap, revenue model and regulatory compliance strategy. As Altcoin’s valuation is at a low level, investors also expect more realistic investment terms, favoring transactions that reflect current market conditions rather than the high valuations that have occurred in the previous cycles. This readjustment indicates that the market is maturing, and rigorous capital allocation and long-term vision take precedence over short-term speculation.

DFG Activities

As a Meta sponsor of ETHDenver 2025, DFG seized the opportunity to communicate with builders, investors and industry leaders – both at our booths and through well-curated peripheral events. This year, we took it a step further, hosting two exclusive gatherings: Founders & VC's Brunch and Proof of Brew: Tasting the Crypto Beer events, reuniting with invested companies and building new relationships throughout the ecosystem.

On February 26, Founders & VC's Brunch, co-organized with NEAR and Jsquare, was a huge success, attracting more than 350 highly qualified guests and oversized. As projects and investors discussed emerging trends such as AI, RWA and DePIN in depth, the atmosphere was warm. Our investment team held one-on-one meetings with carefully screened projects, assessed high-potential investment opportunities and strengthened our commitment to supporting visionary founders who can shape the future of Web3.

DFG also co-organized the Proof of Brew: Tasting the Crypto beer event on February 28 with ZetaChain, CoinList and Jsquare. From craft beer to engaging Web3 discussions, we built meaningful links and shared exciting insights.

I am excited to be part of the March 1 investment roundtable , “The Next Billion Dollar Ideas Are Already Here” , to explore the development of DeFi and highlight key innovations and areas that need improvement. I’m also happy to share with investors the three key investment principles of cryptocurrencies!

During the four-day ETHDenver host meeting, DFG’s investment and marketing teams spoke 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, Angela Tong, chief marketing officer at DFG and Jsquare, discussed 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 brings together builders, investors and industry leaders to explore the next stage of blockchain innovation. While the market is evolving, the event reinforces a key shift – prioritizing long-term sustainability over short-term speculation. From infrastructure and AI to real-world asset and institutional adoption, the focus has shifted from hype to meaningful advances that shape the future of Web3.

At DFG, we are always committed to supporting the Ethereum ecosystem and investing in protocols, infrastructure and innovations that shape the future of Web3. As the industry matures, we believe that basic value creation and utility will determine the next wave of growth. ETHDenver 2025 has clarified: Builders will continue to exist, and the future of blockchain will be built on a strong and sustainable foundation.