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Welcome to this week’s Web3 Digest — where signals break through the noise. Bitcoin’s back in boardrooms, Circle shattered IPO records, and AI dApps are rewriting how we use the blockchain. Here’s what actually moved the needle in Web3 this week.
Bitcoin now makes up 30.95% of total crypto portfolios as of May 2025 — up from 25.4% in November 2024 — according to new data from Bybit Research. This cements BTC’s position as the largest single asset held by crypto investors today. The rise signals more than just market momentum. It reflects a structural shift driven by renewed institutional demand, favorable U.S. regulations, and a surge in appetite for spot Bitcoin ETFs. While retail investors have reduced their exposure to BTC to just 11.6%, institutional players are doubling down — treating Bitcoin as both a macro hedge and a strategic cornerstone in diversified portfolios. Corporations are rushing to secure Bitcoin positions, while newly formed legal entities are buying up billions of dollars’ worth of digital assets, signaling that the next wave of adoption may be driven not by individuals — but by institutions with long-term conviction and deep capital.
Circle Internet Group’s IPO has turned heads across Wall Street — with its stock skyrocketing over 600% since debuting in early June. From an initial price of $31 to highs of $240, Circle now commands a valuation north of $43 billion. Fueled by fresh momentum around stablecoin regulation and strong institutional interest, the listing has quickly become one of the most explosive public-market entries in recent memory.
But not everyone is convinced the rally will last. Analysts warn that current valuations — including price-to-earnings and price-to-sales multiples — are approaching unsustainable levels. Major investors like ARK Invest have already begun to take profits, and some expect volatility as insider lock-up periods expire. Still, Circle’s performance is already reshaping market expectations: crypto companies may finally have a viable path to public markets — if they can back the hype with real fundamentals.
AI-powered crypto applications are rapidly gaining ground in Web3. According to DappRadar, the number of users interacting with AI-based DApps has nearly doubled in 2025, reaching 4.5 million daily unique active wallets. Blockchain activity related to AI has surged by 86%, while the market share of AI apps has grown from 9% to 19% — now nearly matching blockchain gaming, which holds 20%. Analysts see this as a sign of structural shifts in how users engage with DApps, with AI agents becoming a new interface layer for everything from DeFi pilots to autonomous game assistants.
Funding has followed the trend. AI agent projects have already raised $1.39 billion in 2025 — a 9.4% increase over the total raised in 2024. The largest user base comes from Europe (26%), followed closely by Asia at 22%, and North America at 15.8%. Interestingly, 33% of users came from unspecified regions or used VPNs, highlighting a strong undercurrent of anonymous participation. As AI agents surpass legacy use cases, one thing is clear: the next chapter of Web3 will be written by code, not clicks.
Kraken is stepping beyond crypto trading with the launch of Krak, a peer-to-peer payments app designed to handle both fiat and crypto transactions across borders. Announced this week, Krak will offer users an earnings and spending account with yield opportunities on over 20 digital assets, as well as seamless global transfers. By positioning itself alongside mainstream apps like Venmo and Cash App — both of which have limited crypto functionality — Kraken is signaling a bold move to capture a broader financial audience.
Co-CEO Arjun Sethi framed the launch as a response to the outdated financial system, stating that money should move “as easily as information.” This expansion comes amid Kraken’s wider shift toward becoming a full-service financial platform, potentially paving the way for its long-discussed IPO in 2026. With $1.5 billion in revenue in 2024 — driven by renewed market momentum — Kraken appears poised to play a more aggressive role in shaping the future of crypto-integrated finance.
Chainlink and Mastercard have launched a groundbreaking integration, enabling over 3 billion Mastercard cardholders to purchase crypto directly on-chain — starting with DEXs like Uniswap.By combining Chainlink’s decentralized oracle network, the solution bridges traditional payment rails with DeFi, delivering seamless, compliant fiat-to-crypto transactions — no wallets, no friction, no extra steps. This move addresses the biggest barriers to adoption — onboarding, KYC, and usability — and turns any Mastercard into a crypto gateway.As Chainlink co-founder Sergey Nazarov puts it, this is the first step in “revolutionizing on-chain commerce” and giving billions of users secure, intuitive access to Web3.
With Mastercard already tokenizing 30% of its transaction volume — and competitors like Visa close behind — this integration marks a decisive push toward mainstream adoption.For the first time, crypto becomes not just investable, but directly spendable — at global scale.
🧲 Web3’s not waiting for anyone. From Wall Street moves to AI-run dApps, this week showed just how mainstream Web3 is getting. Whether it’s AI agents replacing users or Kraken rethinking peer-to-peer finance — this week made one thing clear: crypto isn’t playing small anymore.
