According to a new report from crypto trading firm Keyrock, onchain asset management is experiencing a breakout year in 2025. The firm estimates that Assets Under Management (AUM) have skyrocketed by 118% to reach $35 billion. This explosive growth is fueled by expansion in automated yield vaults, discretionary strategies, structured products, and onchain credit.
Keyrock's forecast is highly optimistic, projecting the sector could nearly double to $64 billion by 2026 in a base-case scenario. If the current growth trajectory holds, AUM could surge as high as $85 billion.
A major highlight of 2025 has been discretionary strategies, which have seen a staggering 738% year-to-date increase. This signals that onchain investing is becoming a credible and powerful alternative to traditional finance (TradFi).
The report identifies three protocols—Morpho, Pendle, and Maple—as dominant players, collectively controlling 31% of the industry's AUM. This underscores both their scaling leadership and a potential concentration risk within the ecosystem.
Automated yield vaults remain the primary entry point for investors, holding a massive $18 billion in deposits. While smaller wallets are more numerous, the report notes that "whales" and "dolphins" provide the overwhelming majority of liquidity, contributing 70% to 99% of the capital across various strategies.
Performance metrics show the market is maturing. Returns are now competitive with traditional markets but are no longer uniformly higher. After fees, automated yield vaults outperformed their TradFi counterparts by approximately 186 basis points. Structured products and onchain credit slightly lagged when costs were factored in. Discretionary strategies delivered results comparable to hedge funds, with the added advantages of superior liquidity and transparency.
Keyrock, based in Brussels, recently strengthened its position in the asset and wealth management space by acquiring Luxembourg-registered fund manager Turing Capital.