Author: James Wo, Founder & CEO, DFG
TOKEN2049 Dubai 2025 was a vibrant showcase of the evolving cryptocurrency scene, attracting more than 15,000 attendees from around the world to the vibrant halls of Madinat Jumeirah. Unlike last year's event, which was partially interrupted by rare floods, this year's sunny weather reflected the optimistic mood on the scene. The main venue was surrounded by more than 500 official side events, forming a lively ecosystem, ranging from investor gatherings and protocol presentations to late-night networking parties and social events. Most of the attendees came from exchanges, while the participation of public chains and foundations, market makers, and PR companies also added diversity to the conversation. These activities consolidated Dubai's position as an important cryptocurrency hub and laid the foundation for key topics such as market strategy, regulatory clarity, and the next wave of adoption.
From the primary market to the secondary market: strategic readjustment
A major theme discussed by investors at TOKEN2049 in Dubai in 2025 was a notable shift in capital allocation strategies – from aggressive early bets in the primary market to more cautious allocations in the secondary market. The previous market correction forced venture capital firms to reassess their risk tolerance and prioritize capital efficiency. Instead of investing funds in emerging teams with untested products, many firms prefer mature blue-chip digital assets that have demonstrated resilience in market volatility. These assets are often composed of leading Layer 1, proven DeFi protocols, and mature application layer tokens, providing both liquidity and a clearer value proposition. Investors believe that the advantages of accumulating funds in the secondary market include optimized pricing, shortened hype cycles, and access to real-time performance data. This practice reflects the broader maturity of the cryptocurrency venture capital space – where thematic conviction, long-term allocation, and capital discipline trump speculative FOMO. As macroeconomic uncertainty persists, venture capital firms view secondary market exposure not only as a hedging tool, but also as a strategic lever to increase exposure to high-quality projects with continued appeal and upside potential. As a proprietary investment firm with over $1 billion in assets under management, DFG has long taken a strategic, long-term approach to accumulating secondary market investments, focusing on assets with strong fundamentals and reasonable valuations. This enables us to build sustainable positions over the long term, manage risks prudently, and always adhere to our long-term investment philosophy without relying on short-term trading or leverage.
The application layer takes center stage
Another key shift at the conference was the increasing preference of investors for application layer and utility projects over infrastructure. Over the past few years, a lot of money has poured into L1, L2, rollups, and modular frameworks — but with much of this infrastructure laid, the focus has decisively shifted to projects that are building the next layer. Investors and builders are collaborating around projects that can deliver tangible utility, user engagement, and most importantly, real revenue. Protocols with strong fundamentals — such as clear product-market fit, daily active users, and monetization models — have received the most attention in real-world applications. Whether in areas such as payments, DePIN, digital identity, games, or creator tools, builders that can demonstrate retention and early profitability are the focus of discussion. This trend shows that the market is maturing and moving beyond speculative narratives. Application layer innovation is now seen as the primary driver of the next wave of applications, and investors seek projects that can stand on their own, withstand market cycles, and truly enable Web3 utility. Infrastructure may have built the roads, but now everyone is paying attention to the traffic.
AI, RWA, and Stablecoins Dominate
Among the most discussed verticals at the TOKEN2049 Dubai Summit, three sectors continued to dominate: AI, RWAs, and stablecoins. These sectors are more than just buzzwords; they represent structural narratives that many investors believe will define the next phase of growth in cryptocurrencies. The intersection of AI and blockchain is generating widespread interest, especially in autonomous agents, decentralized computing networks, and AI data verification tools. On the other hand, RWAs continue to attract institutional attention for their tokenization potential and to simplify the onboarding process for traditionally illiquid markets such as real estate, bonds, and private credit. Stablecoins remain the foundation for on-chain liquidity, but the focus of discussion is shifting to models that are regulatory-compliant, yield-generating, and multi-chain and can scale globally. This optimism is driven not only by technological advances, but also by changing external dynamics—particularly changes in political leadership in major jurisdictions and ongoing efforts to establish comprehensive regulatory frameworks. These changes can create an environment more conducive to adoption, attracting institutional capital and mainstream users to the space. The atmosphere at TOKEN2049 reflects a cautious optimism: while builders are still executing solidly, tailwinds are accumulating.
DFG activities
This time at TOKEN2049 Dubai, we took a different approach to the event. Instead of the big parties we’ve hosted in the past, we opted for a more relaxed format – a five-day coffee series that brought a refreshing pace. Each day, we served coffee to the first 30 guests at carefully selected local cafes, all within walking distance of Dubai’s most lively event venues. It was a perfect way for us to temporarily escape the hustle and bustle, enjoy Dubai’s best iced coffee, and have meaningful conversations in a more private setting.
Our investment and marketing teams all had the opportunity to engage in deep conversations with builders, investors, and friends, with many lingering long after their coffee. These relaxed morning and afternoon sessions gave us time to really listen, share ideas, and build connections beyond the usual quick chats. A huge thank you to everyone who joined us - you made this coffee series one we absolutely want to do again!
Crypto Café Series by DFG & Jsquare – April 28, 2025
Crypto Café Series by DFG & Jsquare – April 29, 2025
Crypto Café Series by DFG & Jsquare – April 30, 2025
Crypto Café Series by DFG & Jsquare – May 1, 2025
Crypto Café Series by DFG & Jsquare – May 2, 2025
At the Jutopia Hackathon, jointly held with partners such as Juchain, DFG CMO Angela Tong gave a speech, sharing DFG's vision, investment focus, and ongoing plans. In addition to the speech, Angela also served as a judge for Demo Day, providing valuable guidance and feedback for the project presentations of outstanding teams.
During the Jutpia Hackathon, our team also handed out foldable hand fans to visitors at the booth, sparking discussions and interactions with many teams that visited during the event.
DFG Investment Manager Geng Kai participated in the roundtable discussion "Expanding Market Adoption of Web3 Projects" at the Coiniseasy EASYCON conference, sharing how to simplify the Web3 user experience, how to leverage familiar platforms with embedded Web3 components, and how growing institutional participation is accelerating the mass adoption of Web3. Geng Kai also participated in TDeFi's Demo Day event as a judge.
TOKEN2049 Singapore, see you there!
After a week of dynamic exchanges, strategic insights, and a strong community spirit, the TOKEN2049 Summit in Dubai 2025 has left us more informed than ever about where the industry is headed. From the maturation of investor strategies to a greater focus on real utility and user experience, the event has reinforced our belief in long-term value creation. We look forward to continuing to advance these discussions and building momentum at upcoming conferences throughout the year. See you at TOKEN2049 Singapore!
Original article: https://dfg-official.medium.com/dfgs-token2049-dubai-2025-recap-insights-capital-discipline-and-real-utility-turned-up-by-the-d65b887b9d78
