a16z: Why did we raise another $2.2 billion crypto fund?

Original Title: We raised a $2.2B crypto fund
Original Author: @cdixon, @alive_eth, @guywuolletjr, @eddylazzarin, a16zcrypto
Translation: Peggy, BlockBeats

Editor’s note: a16z crypto announced the raising of a $2.2 billion new fund. On the surface, this appears to be another large influx of capital into the crypto primary market; but what this article truly aims to emphasize is not just another bull market narrative, but that the crypto industry is shifting from a “price cycle” to a “usage cycle.”

In past cycles, the crypto industry has always been driven first by speculation, bringing in capital and attention, then leaving behind some truly usable infrastructure after the bubble bursts. a16z’s assessment is that we are currently in such a relatively quiet but more worth observing phase: market sentiment is no longer as noisy as at the peak of a bull run, but applications like stablecoins, on-chain finance, prediction markets, on-chain lending, and asset tokenization are continuously proving their real value.

The most typical example is stablecoins. Their usage has not disappeared with the market cooling down—instead, it continues to grow in scenarios like cross-border transfers, savings, and payments. This indicates that stablecoins are increasingly resembling a new financial network rather than a speculative tool: people use them not because they expect prices to rise, but because traditional financial systems still have obvious gaps in speed, cost, and accessibility.

On-chain finance is also undergoing similar changes. Perpetual contracts, prediction markets, on-chain lending, and the tokenization of traditional assets are transforming blockchain from a “token issuance tool” into a new financial infrastructure. Its advantages are not just about decentralization narratives but more about concrete efficiency: continuous operation, near-instant settlement, low costs, and open to all connected users.

Looking deeper, a16z places crypto within the broader context of AI and internet infrastructure changes. As software systems become more complex, AI increasingly opaque, and internet infrastructure more centralized, the attributes that blockchain was initially designed to provide—transparency, verifiability, global openness, and independence from a few intermediaries—become even more important.

Therefore, this $2.2 billion fund is betting not on short-term market trends, but on whether crypto infrastructure can reach the stage of everyday products. For the industry, the next critical question is no longer “Will prices go up?” but whether these technologies can be genuinely and continuously used, becoming part of finance, creator platforms, AI agents, and digital property systems.

Below is the original text:

Crypto cycles often follow a similar pattern: a wave of speculation brings attention and capital, some of which is wasted, while the rest flows into infrastructure that might not have been built otherwise. When the noise subsides, what remains is usually more useful than at the peak and more durable than at the trough.

If you look beyond prices and observe each cycle, you will see this: what is truly built? What do people continue to use after the hype fades? Right now, we are in such a relatively quiet moment. And the signals being conveyed now are among the most encouraging in recent years.

The clearest evidence is stablecoins. Trading volume fluctuates with market ups and downs, but even during downturns, stablecoin usage continues to rise. People use stablecoins for savings, cross-border remittances, and payments for goods and services, often exposing how slow, expensive, and unreliable traditional alternatives are. The growth of stablecoins increasingly resembles network adoption: sustained compound growth in usage because the technology itself is useful, not just because people expect prices to rise.

Blockchain is also proving its value in capital markets. Since the last cycle, we’ve seen substantial growth in several areas: perpetual contracts for price discovery, prediction markets for revealing real information, and on-chain lending around stablecoin credit markets. Traditional assets are beginning to be tokenized, and on-chain finance is no longer just serving network tokens but being applied to a broader range of assets. A new financial system is taking shape: capable of continuous operation, near-instant settlement, near-zero costs, and open to anyone with internet access.

Regulation is also moving in the right direction. The GENIUS Act is a good example, demonstrating what prudent policy can look like: clear definitions, strong protections, while leaving room for innovation. We expect other areas of crypto to see more regulatory progress through legislation and rulemaking. This will protect consumers, provide certainty for builders, and open pathways for mainstream institutions to participate.

We should also step back and consider why this is especially important now.

Software is becoming more complex and less trustworthy. AI systems are powerful but largely opaque. Internet infrastructure is more centralized than ever. In such an environment, the attributes that crypto networks were originally designed to provide—transparency, verifiability, global openness, and independence from a few intermediaries—are becoming even more critical:

· Transparent and verifiable systems;

· Globally connected networks from day one;

· Economic models that align the interests of users, creators, developers, and operators;

· Infrastructure that does not rely on a few middlemen.

These attributes are being reflected in real products: payments, financial services, creator platforms, decentralized infrastructure, and new ways for humans and machines to coordinate. Many such products are built by startups and are increasingly adopted by financial institutions, tech companies, and other organizations to deliver faster, cheaper, and more reliable services.

In practice, this means people can send remittances instantly worldwide, hold dollars without relying on banks, tokenize assets for frictionless movement anywhere, and access composable networks that others can build upon, embedding these capabilities into various applications.

It also includes new modes previously impossible: users can own their assets and identities directly, enjoying inviolable digital property rights; groups of software agents can make decisions, execute actions, and complete transactions on behalf of users, gaining computing power, data, and services in the process; increasingly autonomous networks can self-finance, govern, and evolve through code.

This is why we are launching Crypto Fund 5: it is designed precisely for this moment. Through this $2.2 billion fund, we will support founders working in the less-noticed phases of the cycle but believed to create long-term value—transforming new infrastructure into products people use every day.

Every major computing platform ultimately influences in this way. Crypto will be no different.

[Original link]

Click to learn more about Rhythm BlockBeats job openings

Join the Rhythm BlockBeats official community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Twitter Official Account: https://twitter.com/BlockBeatsAsia