Major investors are opting to invest in foundational blockchain infrastructure rather than DeFi applications. This shift is attributed to liquidity and reliability issues within the system, according to a survey conducted by CfC St. Moritz.
The survey included 242 participants, comprising institutional players, founders and executives from leading crypto projects, regulators, and family office managers.
85% of respondents identified infrastructure development as their top investment priority, surpassing not only DeFi but also critical areas such as compliance, cybersecurity, and user experience enhancement.
Despite a general optimism regarding revenue growth and innovation, participants view liquidity shortages as the most pressing risk facing the entire industry.
Liquidity
Amid concerns over liquidity, survey participants highlighted two main barriers to institutional capital:
- Insufficient market depth.
- Limited processing capacity of settlement systems.
They believe these "bottlenecks" hinder the influx of major players.
About 84% of participants rated macroeconomic conditions as favorable for the growth of the crypto industry. However, they emphasized that the current market infrastructure is not yet equipped to scale for truly large capital volumes.
Sentiment
The survey also recorded a shift in sentiment. While most expect technological progress to accelerate by 2026, significantly fewer respondents predicted explosive growth compared to last year.
CfC St. Moritz suggests this indicates the industry's maturation: the focus is shifting from speculative expectations to a gradual and pragmatic implementation of existing technologies.
This trend aligns with observed changes in the industry. Instead of chasing consumer applications, investments and developments are concentrating on foundational layers: creating reliable custodial solutions, efficient clearing systems, resilient infrastructure for stablecoins, and legal frameworks for mass tokenization of assets.
Regulation
The survey also revealed an improved perception of the regulatory landscape in the U.S. The country ranked second in the list of most favorable jurisdictions for digital assets, trailing only the UAE.
Experts believe this progress is directly linked to the passage of the stablecoin law (Genius Act) and the establishment of clearer rules for banks and regulated financial institutions dealing with digital assets (Clarity Act).
At the same time, optimism regarding IPOs of crypto companies has noticeably declined. Last year was marked by several public listings, including Circle, BitGo, Bullish, and Gemini.
While most participants still anticipate new listings, far fewer express confidence in a continued boom. They cite global asset revaluation and ongoing structural liquidity constraints in the market as reasons for their caution.
As a reminder, according to a report by JPMorgan, the largest family offices in the world have shifted their focus to artificial intelligence, leaving cryptocurrencies overlooked.