DFG's ETHDenver 2025 Review and Insights: Focus on Long-Term Growth Rather than Hype

Author: James Wo, Founder & CEO, DFG

DFG is honored to sponsor and participate in ETHDenver 2025, an event that attracted approximately 25,000 attendees, a decrease compared to previous years. Despite facing market challenges, the event showcased a resilient Web3 ecosystem, with builders focusing on sustainable, real-world applications in the fields of AI, interoperability, and next-generation dApps. Investors remain active, but they prioritize fundamentals, realistic valuations, and utility-driven projects in AI, RWA, DeFi, and institutional infrastructure. ETHDenver 2025 emphasized that the industry is shifting towards long-term vision, innovation, and sustainability rather than speculation.

Overall Market Sentiment

Despite ongoing macroeconomic concerns, such as trade tensions between the U.S., China, Canada, and Mexico, attendees at ETHDenver 2025 were largely undeterred and maintained an optimistic outlook on the long-term prospects. Many pointed out that anticipated regulatory clarity and increasing institutional adoption are key catalysts for sustainable growth in the sector. Meanwhile, the speculative memecoin frenzy has noticeably cooled, with many in the community openly criticizing its impact. Memecoins have drained liquidity from more meaningful projects, diverted attention from innovation, and operated in an inherently extractive manner, ultimately hindering broader ecosystem development.

In terms of Altcoins, market sentiment appears to be at a low point in recent years, with valuations severely depressed. This environment has led startups to further delay token issuance, as teams wait for more favorable market conditions before taking action. However, many developers are not focusing on short-term token issuance but are instead turning their attention to developing next-generation Web3 applications that can drive real adoption. This aligns with a broader industry recognition that long-term success will depend on the practicality and usability of decentralized applications rather than speculative trading.

One of the most exciting aspects of the event was the intersection of blockchain and AI. Many attendees expressed optimism about the synergies between these two technologies, believing that AI-driven smart contracts, decentralized AI models, and blockchain-based data verification are promising use cases that could drive the next wave of innovation. This sustained enthusiasm indicates that, while speculative narratives may come and go, the focus on tangible progress and real-world applications remains strong.

Builders' Perspective

Despite the lackluster market performance, ETHDenver 2025 still exhibited a strong builder spirit, with many teams continuing to develop products focused on profitability and long-term sustainability. This mindset aligns well with the theme of "Year of Regeneration," emphasizing the creation of regenerative, self-sustaining ecosystems rather than chasing speculative hype. Projects are no longer prioritizing short-term gains but are instead focusing more on revenue generation and business viability, ensuring that their innovations can thrive regardless of market cycles.

A significant shift in builders' strategies is the recognition that multi-chain deployment is now a necessity rather than an afterthought. Interoperability, once seen as a major technical hurdle, is no longer viewed as a constraint but rather as a necessary feature for long-term success. Some teams are adopting cross-chain solutions to maximize their reach, liquidity, and availability across different blockchain ecosystems.

AI and agent-based applications remain major themes, but the focus has shifted from speculative excitement to tangible utility. Builders are now working on developing infrastructure and real-world products that leverage the advantages of blockchain (such as verifiability, privacy, interoperability, and scalability) to enhance AI-driven applications. This shift indicates that the intersection of AI and blockchain is moving from theoretical possibilities to practical implementation.

Another notable trend is the increasing involvement of Web2 participants in these events. More traditional venture capitalists, legal professionals, AI developers, and academics are engaging in the Web3 space, bringing valuable expertise and new perspectives. Their participation signifies a growing recognition of blockchain's potential beyond its native industries, fostering collaboration between traditional technology, regulatory frameworks, and decentralized innovation.

VC Perspective

At ETHDenver 2025, VCs showed strong interest in key areas poised for long-term growth, including AI, RWA, DeFi, stablecoins, and institutional infrastructure. As investors seek projects with tangible use cases and sustainable business models, these areas became focal points for discussion. Unlike previous cycles driven by hype, investors have clearly shifted to prioritizing strong fundamentals and genuine token utility. Investors are now more discerning, looking for projects that provide real value rather than speculative returns.

While many venture capital firms are still actively deploying capital, they are doing so with greater caution given the uncertain macroeconomic environment and the pessimistic sentiment in the Altcoin market. This caution is reflected in stricter due diligence processes and a preference for teams with clear roadmaps, revenue models, and regulatory compliance strategies. With Altcoin valuations at low 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 indicates that the market is maturing, with rigorous capital allocation and long-term vision taking precedence over short-term speculation.

DFG's Activities

As a Meta sponsor of ETHDenver 2025, DFG seized the opportunity to engage with builders, investors, and industry leaders—whether at our booth or through carefully 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 event, reconnecting with portfolio companies and building new relationships across the ecosystem.

On February 26, the Founders & VC’s Brunch, co-hosted with NEAR and Jsquare, was a tremendous success, attracting over 350 high-quality guests and exceeding capacity. The atmosphere was lively as projects and investors engaged in deep discussions about emerging trends such as AI, RWA, and DePIN. Our investment team held one-on-one meetings with carefully selected projects to assess high-potential investment opportunities and reinforced our commitment to supporting visionary founders shaping the future of Web3.