An ETH Denver 2025 Reflection
some biggest takeaways from ETH Denver 2025 🧵👇
(grab some popcorn its going to be a long one)
What began as a developer-focused Ethereum meetup is now:
• A breeding ground for AI+crypto integrations.
• A major forum for TradFi institutions exploring tokenization and DeFi.
• A showcase for new infrastructure like Coinbase’s Base, which many are calling the next major force in the L2 race.
This year’s conversation revolved around:
1. The unstoppable convergence of AI and crypto.
2. The shift from full-time corporate jobs to permissionless, DAOs-driven work.
3. Bitcoin’s rising presence (BTCFi) within traditionally ETH-centric circles.
4. Base emerging as a top L2, eclipsing competitors with speed, seamless UX, and direct Coinbase onramps.
5. The industry’s transition toward real yield, stablecoins, and institutional use cases.
Here’s a comprehensive breakdown of the biggest insights, including a dedicated spotlight on Base.
1. Convergence with Crypto, and TradFi
• AI was omnipresent, from specialized agents and “verifiable inference” tools to generative models assisting in governance.
• TradFi banks and fintechs had a visible presence, exploring stablecoins, on-chain FX, and tokenized assets—signaling deeper institutional forays.
• Bitcoin (via BTCFi) garnered more attention than expected, with ETH whales now keen on BTC as a must-have asset.
Crypto is the core infrastructure for AI verification and automation, AI is transforming how we build on-chain solutions, and TradFi sees on-chain finance as a serious revenue channel.
2. The DAO Model of Work
Builders at ETHDenver shared a common sentiment:
“Forty years at a desk is dystopian.”
• DAOs allow fluid, passion-based contributions.
• AI accelerates solo builder productivity—one developer can do the work of ten.
• Crypto fosters real ownership and upside, replacing “salary” with “stake.”
Hence, people are gravitating towards permissionless frameworks, spinning up projects, or joining DAOs instead of climbing corporate ladders. The ethos is about creating, not complying.
3. Bitcoin’s Transcendence
Even Ethereum OGs have pivoted to discussing their Bitcoin exposure. The question is about BTC’s dominance in on-chain finance (BTCFi):
• BTCFi momentum is growing, bridging Bitcoin’s liquidity into broader DeFi.
• Sidechains and L2 solutions for Bitcoin are spurring novel lending and yield strategies.
• Institutional players see BTC as a foundational asset—beyond mere speculation.
Crypto is more multi-chain than ever. Bitcoin is front-and-center, playing a key role in the evolving DeFi conversation.
4. Narratives Over Engineering
A founder’s quote summed it up perfectly:
“We overengineered our project and under-engineered our story.”
• AI is lowering the barrier to creating apps and protocols; pure tech alone isn’t enough.
• Projects with narrative strength and compelling communities will attract the most capital and contributors.
• Storytelling is becoming the real moat in an otherwise open-source, composable ecosystem.
5. Blockchains as “Keepers of Truth” in the AI Era
As generative AI enables near-perfect fakes, videos, voices, entire identitie, the question becomes: How do we verify anything is real?
Answer: Blockchains as “trust machines.”
• On-chain proofs can authenticate data, identities, or records in a world awash with AI-generated content.
• It will soon to become the foundation for digital trust across every industry.
6. The Decentrazlied Conference Model
ETHDenver 2025 highlighted a broken model:
• Mainstage talks were often overshadowed by vibrant side events.
• Builders gravitate toward intimate gatherings with more depth and networking.
• The future might be less top-down, more spontaneous, bottom-up styles of co-living and co-building.
Decentralization is moving beyond tech into how the community organizes itself.
7. The Base Spotlight
Perhaps the biggest talking point at ETHDenver 2025 was @base optimistic rollup that has rapidly evolved into a top-five chain by volume and TVL.
Here’s why:
7.1. Performance and Adoption
• In 2024, Base outpaced many L2 incumbents by delivering fast block times and near-seamless user experiences.
• This leads to better execution (fewer failed trades, lower slippage), attracting high-frequency DeFi users.
7.2. Major Asset Onboarding
• $cbBTC (Coinbase-wrapped BTC) flipped WBTC volumes in a week, pulling in massive liquidity.
• Coinbase can replicate this “cb” wrapper playbook with cbSOL, cbSUI, or any custodial asset—siphoning TVL from other ecosystems.
7.3. FX Dominance and Global Expansion
• On-chain FX on Base is delivering better USD/EUR execution than traditional finance, thanks to low slippage and efficient routes.
• Coinbase aims to launch a stablecoin for every major currency, establishing the first robust on-chain FX market.
7.4. Deepening Ecosystem
• New token launches (e.g., $VVV, $B3, $KAITO) are flocking to Base for instant liquidity, brand recognition, and the possibility of day-one listing on Coinbase’s CEX.
• Base is building L3 appchains for privacy, specialized blockspace, and custom gas tokens—attracting enterprises and advanced DeFi protocols.
7.5. Stage 1 Decentralization
• By completing Stage 1, Base will further open the network, building trust with bigger capital providers.
• Deeper liquidity, higher volumes, and an even stronger moat against rival L2s.
7.6. @AerodromeFi
• AerodromeFi is Base’s largest protocol and primary exchange, capturing over 60% of DEX volumes.
• 100% of its revenue (REV) flows back to $veAERO holders, acting like a network token for Base itself.
• This synergy between Base and $AERO deepens the chain’s liquidity incentives, overshadowing other ecosystems that rely on external yield farming.
Base is positioning itself as the DeFi hub, leveraging Coinbase’s brand, user base, and enterprise connections.
8. Meme Fatigue, VC Skepticism, and Real Yield
Reflecting on the market environment:
• Memecoin exhaustion: Many ETHDenver attendees are burned out from meme trades, rotating to stablecoins or sidelined capital.
• VC coin fatigue: Retail is wary of “extractive” token economics. VC involvement can ensure stability but often raises questions of fair distribution.
• Real yield: With purely speculative yields tapering off, protocols are pivoting to revenue-sharing models, RWA (Real-World Assets), or stablecoin-driven DeFi.
The next wave of DeFi will hinge on legitimate revenue sources, bridging real-world activity and on-chain finance.
9. Institutional Appetite Despite Mixed Market Sentiment
While attendance appeared lower at the main venue, institutional presence soared:
• Banks, fintechs, and asset managers scouted stablecoin solutions, bridging, and potential on-chain expansions.
• Tokenization summits drew large crowds, with many suits in the audience.
• TradFi actors are increasingly sophisticated, understanding L1 vs. L2, decentralization trade-offs, and the nuances of on-chain liquidity.
Institutions are no longer on the sidelines. They’re in stealth or test phases, but once regulations clarify further, expect them to bring billions in new capital on-chain.
10. AI, Robots, and Automation
The synergy between AI and crypto was on full display:
• AI Agents that can execute trades, govern DAOs, or handle bridging with minimal human input.
• Physical robots were demoed, raising questions about hacking, trust, and potential safety concerns in private homes.
• The concept of “robots in chains” suggests a near future where on-chain verification ensures your household robot (or AI system) remains secure and trustworthy.
No matter the caution, productivity gains will overshadow fear. Builders see a world where AI automates the tedious parts, allowing humans to focus on creativity, governance, and high-level innovation.
Additional Observations and Trends
1. DeFi Yields Cooling: Speculation-based APYs are drying up; protocols now chase sustainable revenue (RWA, stablecoins, embedded finance).
2. Monad Testnet: Emerging L1 players like Monad drew interest for high-performance EVM environments, capturing builder mindshare eager for novelty.
3. Mindshare > Everything: With so many chains and dApps competing, controlling the narrative and building active communities is the only way to stand out.
Where to Next?
1. Base Emerges as a Core DeFi Hub
• Expect a flurry of new token launches, wrapped assets, and integrated consumer products from Coinbase.
• Watch for L3 expansions and the potential tokenization of $COIN on Base.
2. BTCFi Continues Surging
• Sidechains and L2s for Bitcoin will fuel cross-chain strategies, bringing more liquidity into DeFi.
• Institutions now see BTC not just as “digital gold” but a yield-generating asset.
3. AI-Driven Automation Proliferates
• On-chain AI agents will handle governance, bridging, and trading.
• New frameworks for AI x crypto verifications (think “Proof of Authenticity”) will become crucial.
4. Institutional Floodgates
• Regulatory clarity means bigger checks, more stablecoin adoption, and robust on-chain FX markets.
• Tokenized real-world assets (like equities, bonds, and real estate) may drive next-level DeFi volumes.
5. The Conference Decentralizes
• Large “official” stages will lose prominence to smaller, more focused summits and side events.
• Builders and communities will self-organize, choosing deeper collaborative models over wide-ranging expos.
In Closing
ETHDenver 2025 showcased an industry in hyper-acceleration. From AI integration to the meteoric rise of Base and institutional infiltration, the crypto landscape is pivoting from niche speculation to mainstream infrastructure.