Cryptocurrency Landscape of 2025: DePIN Declines Significantly, RWA and Layer 1 Make Strides

According to CoinGecko’s statistical data, the cryptocurrency market in 2025 experienced dramatic performance divergence across different sectors. Notably, traditional narratives such as RWA and Layer 1 outperformed expectations, while emerging sectors like DePIN and GameFi suffered significant declines.

RWA and Layer 1 Lead: Major Winners of 2025

The most robust performance throughout 2025 was in the RWA (Real World Assets) sector, which achieved an average annual growth rate of 185.76%. Keeta Network recorded an astonishing increase of +1794.9%, significantly boosting the sector’s growth.

Layer 1 cryptocurrencies ranked second with an increase of 80.31%, with Zcash up +820.09% and Monero rising 143.6% according to the latest data. US-based crypto narratives also showed strength, with an annual growth rate of 30.62%, ranking third and indicating sector resilience.

What is DePIN: The Struggles of a Promising Decentralized Infrastructure Sector

DePIN refers to decentralized physical infrastructure networks, a new concept integrating real-world resources with blockchain technology. It features an innovative approach where users leverage devices like smartphones and computers to become direct providers of network infrastructure.

However, in 2025, the DePIN sector plummeted by 76.74%, making it one of the worst performers. Similarly, GameFi experienced a sharp decline of 75.16%, leaving both sectors behind the market’s bullish sentiment.

Unexpected Declines: No Sector is Immune to High Attention

AI-related narratives, which garnered high expectations in 2024, fell by -93.47% in 2025 according to the latest data. The meme coin sector also experienced a decline of -85.66%, despite its popularity.

Furthermore, the entire DeFi sector dropped by -99.27%, and DEX sectors declined by -85.66%, forcing a significant market correction. Layer 2 also fell by -40.63%, marking a second consecutive year of decline. The Solana ecosystem saw a decrease of -45.47%, among many major sectors under downward pressure.

Market Narrative Shift: What Happened

The cryptocurrency market in 2025 revealed a clear shift in interest from emerging technology sectors to real-world assets. Investors’ expectations for innovative sectors like DePIN and GameFi faced a gap with reality, while traditional and practical narratives such as RWA attracted institutional investor attention. This market movement indicates a crucial turning point, suggesting that the crypto industry is moving toward a mature stage.