DFG’s ETHDenver 2025 Recap & Insights: Focus on Long-Term Growth Over Hype
Author: James Wo, Founder & CEO of DFG
DFG is proud to sponsor and attend ETHDenver 2025, which drew around 25,000 attendees, marking a decline from previous years. Despite market challenges, the event showcased a resilient Web3 ecosystem, with builders focusing on sustainable, real-world applications in AI, interoperability, and next-gen dApps. Investors remain active but are prioritizing fundamentals, realistic valuations, and utility-driven projects in AI, RWA, DeFi, and institutional infrastructure. ETHDenver 2025 underscored the industry’s shift toward long-term vision, innovation, and sustainability over speculation.
Overall Market Sentiment
Despite ongoing macroeconomic concerns, such as trade tensions among the U.S., China, Canada, and Mexico, ETHDenver 2025 attendees remained largely undeterred, holding a long-term bullish outlook. Many pointed to the anticipated regulatory clarity and increasing institutional adoption as key catalysts that will drive sustainable growth in the space. Meanwhile, the speculative memecoin frenzy has significantly cooled down, with many in the community openly criticizing its impact. Memecoins drained liquidity from more meaningful projects, diverted attention from innovation, and operated in an inherently extractive manner, ultimately stunting broader ecosystem development.
On the altcoin front, sentiment appeared to be at its lowest point in recent years, with valuations deeply depressed. This environment has led to further delays for startups looking to launch their tokens, as teams wait for more favorable market conditions before taking the plunge. However, rather than focusing on short-term token launches, many builders are shifting their attention toward developing the next generation of Web3 applications that could drive real adoption. This aligns with the broader industry realization that long-term success will depend on the utility and usability of decentralized applications rather than speculative trading.
One of the most consistent sources of excitement at the event was the intersection of blockchain and AI. Many attendees expressed optimism about the synergies between the two technologies, seeing AI-powered smart contracts, decentralized AI models, and blockchain-based data verification as promising use cases that could drive the next wave of innovation. This continued enthusiasm suggests that, while speculative narratives may come and go, the focus on tangible advancements and real-world applications remains strong.
Builders Outlook
Despite the lackluster market, ETHDenver 2025 showcased a strong builder spirit, with many teams continuing to develop products focused on profitability and long-term sustainability. This mindset aligns well with the “Year of the Regenerates” theme, which emphasizes creating regenerative, self-sustaining ecosystems rather than chasing speculative hype. Instead of prioritizing short-term gains, projects are placing greater emphasis on revenue generation and business viability, ensuring that their innovations can thrive regardless of market cycles.
A major shift in strategy among builders is the recognition that deploying on multiple chains is now a necessity rather than an afterthought. Interoperability, once considered a major technical hurdle, is no longer viewed as a constraint but rather as an essential feature for long-term success. Teams are embracing cross-chain solutions to maximize their reach, liquidity, and usability across different blockchain ecosystems.
AI and agent-based applications remain dominant 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 blockchain’s strengths — such as verifiability, privacy, interoperability, and scalability — to enhance AI-driven applications. This shift indicates the AI-blockchain intersection is moving beyond theoretical possibilities toward practical implementation.
Another notable trend is the increasing presence of Web2 participants at these events. More traditional venture capitalists, legal professionals, AI developers, and academics are engaging with the Web3 space, bringing valuable expertise and fresh perspectives. Their involvement signals a growing recognition of blockchain’s potential beyond its native industry, fostering collaboration between traditional tech, regulatory frameworks, and decentralized innovation.
VCs Outlook
At ETHDenver 2025, venture capitalists showed a strong focus on key sectors poised for long-term growth, including AI, RWA, DeFi, stablecoins, and institutional infrastructure. These areas dominated discussions as investors looked for projects with tangible use cases and sustainable business models. Unlike previous cycles driven by hype, there was a clear shift toward prioritizing strong fundamentals and genuine token utility. Investors are now more discerning, seeking projects that offer real value rather than speculative gains.
While many VCs are still actively deploying capital, they are doing so with increased caution, given the uncertain macroeconomic environment and bearish sentiment in the altcoin market. This prudence is reflected in more stringent due diligence processes and a preference for teams with clear roadmaps, revenue models, and regulatory compliance strategies. With altcoin valuations at depressed levels, investors also expect more realistic investment terms, favoring deals that reflect current market conditions rather than the inflated valuations seen in previous cycles. This recalibration suggests a maturing market where disciplined capital allocation and long-term vision take precedence over short-term speculation.
DFG’s Events
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 curated side events. This year, we took it a step further by hosting two exclusive gatherings: the Founders & VC’s Brunch and Proof of Brew: Tasting the Crypto beer mixer, reconnecting with portfolio companies and forging new relationships across the ecosystem.
The Founders & VCs Brunch, co-hosted with NEAR and Jsquare on February 26, was a resounding success, drawing an oversubscribed crowd of 350+ high-caliber guests. The energy in the room was electric as projects and investors dove into discussions on AI, RWA, and DEPIN, among other emerging trends. Our investment team conducted 1:1 meetings with carefully shortlisted projects, evaluating high-potential investment opportunities and reinforcing our commitment to backing visionary founders shaping the future of Web3.
DFG also co-hosted Proof of Brew: Tasting the Crypto beer mixer together with ZetaChain, CoinList, and Jsquare on February 28. From craft beers to captivating Web3 discussions, we made meaningful connections and shared exciting insights.
It was great joining the investment panel “The Next Billion Dollar Ideas Are Already Here” on March 1 to explore DeFi’s evolution and highlight key innovations and areas that need improvement. I was also happy to share three key investment principles for investors navigating crypto!
During the four days of ETHDenver main event, DFG’s investment and marketing teams engaged with hundreds of visitors at our booth, sharing our background, investment thesis, and long-term vision for the Web3 ecosystem.
At DeFi World 2025 conference on February 26, Angela Tong, CMO of DFG and Jsquare, and fellow panelists explored the future of blockchain infrastructure and scaling solutions, discussing innovations in L2s, 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 critical shift — one that prioritizes long-term sustainability over short-lived speculation. From infrastructure and AI to real-world assets and institutional adoption, the focus has moved beyond hype toward meaningful advancements that will shape the future of Web3.
At DFG, we remain committed to supporting the Ethereum ecosystem and investing in the protocols, infrastructure, and innovations shaping the future of Web3. As the industry matures, we believe that fundamental value creation and utility will define the next wave of growth. ETHDenver 2025 made it clear: the builders are here to stay, and the future of blockchain is being built on strong, sustainable foundations.
About DFG
Digital Finance Group (DFG) is a leading global Web3 investment and venture firm, established in 2015. With assets under management exceeding $1 billion, DFG’s investments span across diverse sectors within the blockchain ecosystem. Our portfolio boasts investments in pioneering projects such as Circle, Ledger, Coinlist, Near, Solana, Render Network, ZetaChain, and over 100 others.
At DFG, we are committed to generating value for our portfolio companies through market research, strategic consult, and sharing of our vast resources globally. We are actively working with the most transformative and promising blockchain and Web 3.0 projects poised to revolutionize the industry.
DFG Website: https://dfg.group
DFG Twitter: @DFG__Official
DFG LinkedIn: DFG
