As the year 2025 approaches its conclusion, it has become evident that U.S. institutional investors played a pivotal role in driving profitability within the cryptocurrency sector. A recent report from CoinGecko reveals that only three specific crypto narratives emerged victorious amid a challenging market.
The standout performer was crypto tokens associated with Real-World Assets (RWA), achieving an impressive year-to-date (YTD) return of approximately 185.7%. Following closely behind, the Layer 1 sector garnered significant attention, particularly due to the remarkable gains of privacy-focused cryptocurrencies.
Among these, Zcash (ZEC) and Monero (XMR) saw exceptional returns of over 691% and 143% respectively. Notably, popular Layer 1 assets like BNB, Bitcoin Cash (BCH), and Tron (TRX) also registered positive performance despite the overarching weakness in the broader crypto market.
The third narrative to achieve profitability in 2025 is the Made in USA category, which is on track for over 30% average returns YTD. The stellar performance of ZEC significantly bolstered this category”s success, highlighting the influence of strong U.S.-based projects.
Conversely, several narratives, including memecoins, Layer 2 solutions, AI-related projects, decentralized exchanges (DEX), GameFi, and DePIN, experienced substantial losses. In fact, GameFi and DePIN were the worst performers, suffering drawdowns of 75% and 76% YTD respectively. The Solana ecosystem also faced difficulties, dropping 64% YTD, with only Jupiter (JLP) managing to resist the broader downturn.
Looking ahead, 2026 is anticipated to bring improved performance across the crypto market. While institutional investors were key drivers of profit in 2025, the landscape may shift as retail traders re-enter the scene. This change is expected to be catalyzed by ongoing regulatory clarity in the U.S. and the anticipated approval of spot exchange-traded funds for several altcoins.
In 2024, notable narratives included AI, memecoins, and RWA; thus, a resurgence of these themes could benefit institutional-backed projects in 2026. The expected regulatory developments, particularly the Clarity Act, may further influence retail trader sentiment.
As we approach 2026, the crypto landscape is poised for transformation, driven by both institutional and retail participation, amidst a backdrop of evolving regulations and market dynamics.
