Crypto market leadership has shifted markedly in 2025, with real-world asset tokenisation emerging as the strongest performing narrative so far this year, according to new data from CoinGecko. The findings point to a cooling of last year’s speculative themes and a rotation toward sectors more closely linked to regulation and institutional adoption.
CoinGecko’s research shows that tokens associated with real-world assets, including projects focused on tokenised bonds, funds, and payment-linked instruments, have delivered the highest average returns year to date. By contrast, narratives that dominated 2024, notably artificial intelligence and memecoins, have posted negative performance on average in 2025.
Rotation toward regulated use cases
The shift reflects changing risk appetite across digital asset markets. After a year dominated by retail-driven speculation, investors appear to be favouring themes tied to predictable revenue models and clearer legal frameworks. Real-world asset projects have benefited from growing interest in tokenisation by banks, asset managers, and payment firms, particularly in jurisdictions with advancing regulatory clarity.
Layer 1 blockchain tokens have also held up relatively well compared with other sectors, suggesting renewed interest in base-layer infrastructure rather than application-level experimentation. Meanwhile, decentralised finance, gaming, and Layer 2 networks have struggled to maintain momentum amid lower trading volumes and tighter liquidity conditions.
CoinGecko’s methodology tracks average price performance across the largest tokens within each narrative category. While the data does not capture underlying usage or development activity, it provides a snapshot of where capital has flowed during the year.
Implications for Europe
For European policymakers and regulators, the changing narrative landscape is notable. The relative strength of real-world asset tokens aligns with broader policy debates around tokenised deposits, securities settlement, and digital money infrastructure. As frameworks such as MiCA begin to shape market behaviour, projects perceived as compliant or institutionally aligned appear to be attracting greater investor confidence.
At the same time, the pullback in highly speculative sectors underscores the volatility risks that continue to characterise crypto markets. Narrative leadership can shift quickly, and strong short-term performance does not necessarily translate into long-term adoption.
As 2025 progresses, analysts expect further divergence between speculative themes and sectors tied to real economic activity. CoinGecko’s data suggests that, at least for now, the market is rewarding crypto narratives that look less like experiments and more like financial infrastructure.