As a seasoned crypto investor with a decade of experience under my belt, I can confidently say that the State of Crypto report by Andreessen Horowitz (a16z) is nothing short of remarkable. The all-time highs for usage and activity in the blockchain space are a testament to the relentless growth and mainstream adoption of digital assets.
The latest “State of Crypto” study from venture capital firm Andreessen Horowitz (a16z) indicates that the blockchain sector reached unprecedented levels in terms of utilization and action.
The study indicates that approximately 220 million addresses engaged with a blockchain at least one time during September 2024, which is three times more than the number reported at year-end 2023.
Solana Has Largest Number of Active Users
The majority of the activity was driven by Solana, which boasted a massive 100 million active users, trailed closely by NEAR with 31 million. Coming in third was Coinbase’s Layer 2 (L2) network, Base, with approximately 22 million wallets engaging it at least once, while Justin Sun’s Tron network saw around 14 million interactions.
Bitcoin recorded approximately 11 million distinct users, with Binance‘s BNB Chain trailing slightly behind at around 10 million users.
Furthermore, it seems that the number of blockchain developers interested in Solana increased by approximately 11.2%, rising from a relatively lower 5.1% in 2023. Similarly, there has been a significant surge of interest in Base, with its share of builders expanding by about 10.7% compared to the previous year’s 7.8%.
As an analyst, I’ve noticed a modest increase in the percentage of cryptocurrency founders expressing interest in the Bitcoin ecosystem. This year, it stands at 4.2%, compared to just 2.6% in 2023 who demonstrated any interest in the network previously.
A significant finding from the a16z study is the rapid expansion of stablecoins, surpassing conventional payment systems in their performance. During the second quarter of 2024, these digital currencies handled a staggering $8.5 trillion in transactions, over doubling Visa’s $3.9 trillion processed during the same timeframe.
In response to the report, Darren Matsuoka from a16z noted that stablecoins are proving to be the “star product” or “breakout hit” in the crypto sector, largely due to their low transaction fees. He highlighted an example where sending USDC on L2 networks like Base currently costs just pennies, compared to the expensive average fee of $44 for international wire transfers.
Crypto’s Growing Role in U.S. Politics
Additionally, the document highlights that cryptocurrency has emerged as a significant topic in politics, particularly since the upcoming U.S. elections are just around the corner.
As a researcher delving into the realm of cryptocurrencies, I’ve observed that both Donald Trump and Vice President Kamala Harris have expressed interest in this dynamic sector to varying extents. Interestingly, data from Galaxy Research indicates that Trump currently enjoys more favor within the crypto community. However, there is an optimistic sentiment that Vice President Harris might prove to be a stronger advocate for the industry than President Biden has been thus far.
According to data from Google Trends, there has been an increase in searches about cryptocurrency in key states like Pennsylvania and Wisconsin, positioning these states among the top five with the most significant surge in curiosity related to cryptocurrencies.
In addition to other significant locations, the states of Michigan and Georgia experienced a rise in cryptocurrency interest. On the flip side, a decrease in cryptocurrency interest was observed in Arizona and Nevada.
As per a16z, one reason for the growing interest in digital assets is the introduction of exchange-traded funds (ETFs) that deal directly with Bitcoin and Ethereum. Combined, these financial instruments currently manage close to $90 billion worth of assets stored on blockchain networks.
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2024-10-20 01:04