Web3 Investor Briefing April 2025
Henrik Bredenbals, Julius Nagel, Tom König
Apr 30, 2025
Every month we provide you with insightful deep-dives into the world of Web3 investing.
Welcome to this month's investor briefing featuring our latest analysis, findings and strategic insights from the Web3 ecosystem.
TL;DR
Bitcoin market analysis with Julius from w3.wave exploring the "Tale of Two Bitcoins" concept and how it's positioned to benefit in both defensive and liquidity-rich environments.
Stablecoin revolution insights with Henrik from w3.ventures, examining how digital dollars have exceeded $35 trillion in transaction volume in 2024, surpassing Visa and Mastercard combined.
Comprehensive staking landscape overview with Tom from w3.labs, providing insights for investors navigating various staking options.
Crypto Market Update: A Tale of Two Bitcoins
The past month continued the volatility we observed in February, as crypto markets navigated a complex global environment. Investor uncertainty peaked on April 2nd—“Liberation Day”—when the U.S. announced a sweeping new wave of global tariffs, exceeding expectations and sending markets into sharp decline. Over the following days, we witnessed numerous statistical outliers across asset classes, highlighting the exceptional nature of recent events.
Since then, Bitcoin and other cryptocurrencies have staged a significant recovery. Bitcoin, for example, rebounded from April lows of $74,000 to approximately $94,000 at the time of writing.
In this month's investor update, I would like to share our perspective on these movements and introduce the idea of the "two Bitcoins."
Bitcoin and Market Correlations: Decoupling or Normal Behavior?
Bitcoin’s behavior has often defied easy categorization: described alternately as illegal internet money, an inflation hedge, digital gold, or a highly levered tech stock. In recent weeks, the narrative of a "decoupling" has gained traction, with Bitcoin rallying nearly 30% against the S&P 500.
While "decoupling" makes for an appealing headline, we view recent price action as consistent with crypto’s historical sensitivity to shifts in liquidity and uncertainty. Crypto assets tend to correct faster than traditional markets—and often anticipate recoveries.
As the accompanying chart illustrates, Bitcoin’s correlation with stocks and gold has been volatile and dynamic over time. In our view, Bitcoin’s relationship with traditional assets evolves fluidly, not through one-off structural breaks.
The Tale of Two Bitcoins
Recent discussions brought me back to the idea that Bitcoin embodies two powerful narratives.
First, Bitcoin is increasingly perceived as "digital gold"—a defensive asset attracting capital during periods of market stress or shifting global dynamics.
Second, Bitcoin thrives in liquidity-driven environments, such as during monetary easing. It acts as a high-beta asset responding quickly to expansions in liquidity, serving as a hedge against fiat debasement.
These dual narratives mean Bitcoin has fundamental reasons to perform well in both uncertain and liquidity-rich environments.
Looking ahead, we see two plausible macro paths, each supportive for Bitcoin.
Trade-war escalation and rising geopolitical stress.
If tariff measures snowball into a broader trade war, investors will gravitate toward neutral, portable stores of value. Gold has already reflected that bid; Bitcoin, as its digital analogue, would likely attract a similar “flight-to-quality” flow.Policy backstop and renewed liquidity.
Should mounting market strain force central banks and governments to ease financial conditions, the resulting expansion in global liquidity would favor high-beta assets. Historically, Bitcoin has responded quickest—and most forcefully—to such liquidity infusions.
In short, whether the next chapter is defined by defensive positioning or by fresh stimulus, the setup points to meaningful tailwinds for Bitcoin.
As always, we caution against drawing conclusions from short-term movements. Instead, zoom out: over time, Bitcoin has outperformed nearly every major asset class—a trend we believe merits close attention as we manage portfolios in a complex macro landscape.
The amount of Bitcoin held in corporate treasuries continues to set new all-time highs. Following the success of Michael Saylor and his company Strategy, many firms globally have adopted similar treasury strategies. Most notably, SoftBank, Tether, and Cantor recently announced the launch of "Twenty One," backed by an initial $4 billion investment in Bitcoin.
While we view this trend as a strong indicator of Bitcoin’s growing institutional adoption - and a potential driver of sustained buying pressure - we remain cautious. In particular, we are mindful of the risks to corporate balance sheets during periods of market stress or significant price declines.
The stablecoin revolution: Why businesses and consumers are choosing digital money
With $35 trillion processed in 2024, stablecoins exceeded the combined transaction volume of Visa and Mastercard, marking a fundamental shift in global finance. These digital dollars are the new bridge between traditional financial systems and blockchain technology that create a huge efficiency boost for businesses and consumers alike.
What are stablecoins and why do they matter?
Think of stablecoins as digital dollars that combine the stability of traditional currencies with the speed and efficiency of blockchains and associated decentralized infrastructure.
The problem:
As Matt Brown explains in his recent stablecoin article, sending money across borders is like traveling between countries with different railway systems. Each transition requires changing trains, paying fees, and waiting—sometimes for days.
Traditional solutions:
Banks use SWIFT networks, requiring multiple intermediaries
Services like Western Union rely on physical agent locations
Companies like Wise maintain bank accounts in different countries
All these methods involve multiple steps, high fees, and significant delays.
The stablecoin solution:
Instead of inefficiently moving money through these complex networks, stablecoins create a direct bridge for financial systems. It's like teleporting your money instantly from one country to another with no intermediaries, minimal fees, and near-instant transfers.
By maintaining a stable value (1 stablecoin = 1 USD), stablecoins offer businesses and consumers the best of both worlds: the reliability of traditional currency with the speed and efficiency of digital services.
The growth story: Stablecoins by the numbers
The adoption of stablecoins is accelerating at a breathtaking pace, as you can see from the numbers below.
Stablecoin adoption (2024-2025):
Users: ↑53% (from 19.6M to 30M active wallets)
Supply: ↑63% (reaching $227B total market cap)
Transactions: ↑115% (monthly volumes from $1.9T to $4.1T)
Global Reach: Now accepted in over 70 countries worldwide
This growth trajectory stems from stablecoins' unique value proposition: They combine the best aspects of traditional and digital finance.
The business case: Why companies are embracing stablecoins
Stablecoins are transforming how businesses operate globally, offering advantages that traditional financial systems cannot match:
Dramatic cost reduction for cross-border transactions
Traditional B2B payments between countries like Mexico and Vietnam take 3-7 days to clear and cost between $14-$150 per $1,000 transacted, passing through up to five intermediaries. Stablecoins eliminate these middlemen, making international transfers nearly free and instant.
For businesses with thin profit margins, the impact is profound. As a16z crypto notes, a 1.5% reduction in payment processing fees could potentially double the net income of low-margin businesses like grocery stores.
Treasury management and global operations
Major companies including SpaceX are already using stablecoins to manage their corporate treasuries, particularly for transferring funds from countries with volatile local currencies like Argentina and Nigeria to the U.S This provides businesses with a stable store of value regardless of local economic conditions.
Programmable money for business automation
Stablecoins enable entirely new business capabilities through programmable payments:
Automated machine-to-machine transactions for AI-powered marketplaces
Transparent payouts with complete audit trails
Instant settlement for international transactions without intermediaries
Consumer benefits: Why everyday users are adopting stablecoins
The advantages of stablecoins extend beyond businesses to everyday consumers, addressing longstanding pain points in personal finance:
Drastically reduced remittance costs
For migrant workers sending money home, traditional remittance services extract a heavy toll. Sending $200 from the U.S. to Colombia using conventional methods costs $12.13 (over 6%)—with stablecoins, the same transfer costs just $0.01.
This isn't just a minor improvement—it's a life-changing difference for millions of people supporting families across borders. The World Bank reports that the average remittance cost was 6.62% as of September 2024, effectively imposing a regressive tax on some of the world's poorest workers.
Financial inclusion without barriers
Traditional banking systems leave billions of people underserved or entirely excluded. Stablecoins provide financial access to anyone with a smartphone and internet connection, without requiring permission from gatekeepers or extensive documentation.
This creates a pathway to financial services for the estimated 1.4 billion unbanked adults worldwide, particularly in regions with unstable local currencies or limited banking infrastructure.
Spotlight: Mento Labs
Mento Labs, a w3.fund portfolio company with over 5 million users and 550 million transactions in 2024, has become the second most-used stablecoin platform globally by daily active users (after Tether). Mento's impact has expanded dramatically through its strategic partnership with Opera's MiniPay wallet, allowing Opera's massive user base to seamlessly manage multiple currencies through an intuitive drag-and-drop interface. This collaboration has been particularly transformative in Africa, where Opera has a strong presence and where traditional banking infrastructure is often limited.
As competition drives conversion fees between stablecoins and local currencies down (ranging from 5% to as low as 0% in some cases), the consumer benefits will only increase.
The staking landscape: Understanding your options
Status quo: Staking in 2025
After our successful launch of w3.labs, we took the time and spoke with 100+ people about their staking habits. The findings revealed that even as staking adoption grows, most participants encounter these four consistent barriers:
Many are still discovering the fundamental benefits of staking mechanics
Potential stakers (especially in Germany) are hesitant due to tax concerns
Documentation and tax reporting remain significant pain points
The complexity of alternatives pushes most users toward centralized platforms by default
These aren't isolated cases but common challenges in the early adoption phase that we've experienced firsthand, too.
When Tim and I started staking our own assets, we immediately encountered a fragmented landscape of tax implications and regulations, which were not addressed by any solution on the market. Our own requirements ended in the development of the w3.labs staking platform with a strong focus on self-custody and simplified documentation to make staking accessible to everyone, regardless of technical expertise.
Understanding different staking methods: A comprehensive guide
Through these findings, we realized that many people aren’t aware of the different types of staking and we want to help you navigate the staking landscape more effectively. Let's explore the main approaches available today, with their respective advantages and limitations:
Exchange staking
What it is: Staking your assets on a centralized exchange platform that handles all technical aspects on your behalf.
Advantages:
User-friendly interfaces that simplify the staking process
All-in-one solution where you can deposit, purchase, and stake on a single platform
Limitations:
"Not your keys, not your coins" - no self-custody of your assets
Risk of potential clawbacks in cases of exchange bankruptcy
Dependence on the exchange's security and business practices
Examples: Coinbase, Binance, Kraken, Bitpanda
Blockchains: Most blockchains are supported (depending on the platforms)
Liquid staking
What it is: Staking your tokens with a decentralized protocol that runs validators and issues liquid tokens representing your staked assets in return, allowing you to use these tokens elsewhere in DeFi while still simultaneously receiving staking rewards.
Advantages:
Staked tokens can continue to be used as collateral or within DeFi applications while still earning staking rewards
Limitations:
Sending your token to a liquid staking pool and getting a receipt token in return can be considered a swap, potentially creating tax complications
Increased complexity can be a security risk
Pseudonymous participation often means limited direct human support when issues arise
Examples: Lido, Rocket Pool, Stride, Jito, Marinade, Meta Pool
Blockchains: Most major blockchains, e.g. Ethereum, Solana, Celestia, Near
Delegated staking (or delegated proof-of-stake / dPoS)
What it is: Staking with a particular validator and receiving rewards proportionally to their performance. This staking process is called delegation and is a direct part of the consensus mechanism of the blockchain.
Advantages:
Low barrier to entry compared to running a full validator
Flexibility to choose validators based on performance, commission rates, and values
Maintain custody of your tokens while still participating in network security
Limitations:
Risk of slashing if your chosen validator misbehaves (varies by network)
Your staked assets are locked for some time after unstaking
Requires research to select reliable validators among dozens or hundreds of options
Blockchains: Solana, Celestia, Cosmos, Sui
Validation
What it is: Running your own validator node to directly participate in network consensus, requiring technical knowledge and dedicated hardware.
Advantages:
True self-custody of your assets
Direct contribution to network decentralization without reliance on third-party providers
Limitations:
Requires infrastructure operation knowledge and ongoing maintenance
Can introduce significant regulatory and tax implications
High accounting complexity for tracking rewards and transactions
Blockchains: Ethereum, Near
w3.labs staking
What it is: A self-custodial staking platform designed to simplify Ethereum validation while staying user controlled and tax efficient.
Advantages:
Self-custodial solution that keeps you in control of your assets
User-friendly interface that simplifies the staking process
No infrastructure operation knowledge and ongoing maintenance required
Blockchains: Ethereum
What staking challenges have you encountered? We'd love to hear about your experiences and how we might help address them in future updates to our platform.