New Crypto BOOM Coming!! Crypto VCs Shocking Predictions!

crypto is booming look I know after 7 months of sideways price action it might not feel like it but trust me Bros behind the charts good news abounds don't take it from me one of the world's top Tech VCS just dropped a report that lays bare the current state of crypto and spoiler alert we look pretty Dam good today we're bringing you the highest of the highlights from this report we're talking Mass adoption stable coin Wars blockchain burnout and much more be sure to watch until the end to find out what it means for the crypto Market this is the state of crypto report 2024 published by a16z also known as Mark Andre's VC firm Mark was recently in the news for turning an airun Twitter account into a millionaire but before this he was known for investing in coinbase Unis swap salana Aptos polygon CH analysis the list goes on if you didn't already know a16z is one of the most prestigious VCS in web 3 and web 2 for that matter so when they talk about crypto it's usually worth listening to and this report is no exception let's dig in our first highlight is a mindboggling statistic about crypto adoption in September 2024 220 million addresses interacted with a blockchain at least once it's an all-time high and that's more addesses than were internet users in 1998 we're basically on the cusp of the dot bubble here but it's crypto still early folks the number of monthly active addresses has more than tripled since the end of 2023 which sounds amazing alas this 220 Million number doesn't correspond to the number of actual humans interacting with the blockchain for a few reasons firstly it's very common for even casual crypto users to have more than one wallet because why would you want to have all your eggs in one basket but secondly airdrop farming has given people a reason to create a cluster of wallets it's called a cibil in order to multiply their airdrop allocation the third reason is a newer phenomenon and it explains why the number of addresses tripled this year and that is the massive proliferation of tokens launching on Fast and cheap blockchains for reference there are now almost twice as many monthly active addresses on salana than on all evm chains combined the supply of newly launched tokens is often controlled by Wales and because they are traded onchain anyone can check how the token Supply is distributed if it's concentrated in a few addresses this is a big red flag and Savvy Traders and investors will avoid it like the plague to get around this whales conceal their Holdings by Distributing it across many civil wallets and if the whales are project in insiders it's also common for them to set up tens hundreds or even thousands of bots each with their own address to wash trade the token so it's safe to say that there is a lot of noise in this 220 million figure but luckily a16z devised a methodology to filter out that noise and identify human controlled addresses for example they filtered out wallets that conducted many transactions in a very short period of time because this is something that only bots can execute similarly addresses with near zero balances at the beginning and the end of the month were also faltered out these are likely Bots or sibles because human users tend to leave some crypto in their wallets to cover gas fees for future transactions after applying these and other criteria to their data a16z identified between 30 to 60 million real monthly transacting users the authors acknowledge that this is an enormous range but it's their best ballpark range based on the data available they also note that 30 to 60 million is also only about 5 to 10% of the 67 million Global crypto owners reported by crypto. com in June and this suggests that there is an enormous opportunity to convert existing passive crypto holders into active users assuming that these numbers are even vaguely accurate it would take just a small fraction of passive hodlers to be converted to double or triple the number of active users on chain that's pretty exciting next up stable coins there are some really interesting facts and figures here the first thing to point out is that stable coin activity has been growing non-stop since 2019 the key word here is nonstop because as the report shows us the number of addresses send in stable coins monthly goes up regardless whether spot crypto trading volume increases or decreases rain or shine bull or bear stable coin adoption is going strong and this is also clear from transaction volume in Q2 of this year 8. 5 trillion was transacted in stable coins that's more than double the 3.

9 trillion in transactions processed by Visa in the same 3month period if you annualize this figure you get 34 trillion dollar in stable coin transaction volume over a year that's more than double the GDP of the United States H not too shabby in other stable Coin News stable coin issuers in aggregate are now the 19th biggest holder of US Government debt in the world and bear in mind that all the other biggest holders are nation states stable coins have only been around for a decade but their issuers have already bought more US Government debt than Germany at this rate great they're going to flip Mexico pretty soon too now at the moment tether holds almost eight times as much US debt as Circle but new regulations in the US EU and Japan have given Circle a huge advantage over tether which may now struggle with compliance in these territories tether is still the stable coin King by a very long way but its lead over Circle could shrink if usdc becomes the default choice in jurisdictions where usdt is deemed non-compliant lastly there's an amazing stable coin graph in this report courtesy of Argentina it shows an inverse correlation between the Argentine peso's purchasing power in USD and the volume of stable coins traded with the Argentine peso on bitso a leading crypto Exchange in Latin America basically Argentina has been hit extremely hard by inflation and people are flocking to a Us doll stable coin as an accessible hedge the graph shows that since November 2022 the purchasing power of the peso measured in US Dollars has fallen by 82% whereas pzo to stable coin trading volume has increased by more than 10,000% that's wild although we must say it's a little sad to see that Fiat stable coin trading only exploded after inflation had already bottomed Argentinian savings could have been protected from a lot of the downside if only stable coins had caught on a little sooner I'm I'm sure there's a story behind this uh inflation bottomed and stable coin trading exploded right after December 2023 when President mle was elected if you're watching this from Argentina let us know exactly what happened here in the comments down below moving on another page in the report gives us a bird's eyee view of cbdc progress around the world according to the map over here most people in the world now live in a country where a cbdc is being piloted or is in a proof of concept phase almost every country for which there is data is still in the research phase then we have a very exclusive Club of countries where cbdcs have either been launched or axed altogether the map shows that Nigeria Zimbabwe and the Bahamas have already launched their own cbdcs Ecuador and Kenya have cancelled their cbdc projects and so has Denmark although the map says that they are still in the research phase the authors highlight the war in Ukraine and related sanctions on Russia as a Tipping Point in cbdc history pointing out quote the number of cbdc developments between banks have doubled since the War Began there are now 13 crossb cbdc projects between Banks notably including brics's own payment system embridge which you can learn more about in our video about it using the link in the description 2024 is probably going to be remembered as a year of blockchain burnout nobody asked for 14 layer twos but that's ethereum now oh wait there's over 110 layer twos now never mind then and don't even get me started on all the ethereum killer Killers there's a serious oversupply of blockchains competing for attention and liquidity and the price action of their native cryptos suggests that people they're tuning out alternatively You could argue that lackluster price action came first and blockchain fatigue is just a convenient narrative that I made up to explain why prices have tanked it's a chicken and egg thing but the point is new blockchain launchers are not as exciting as they once were as a result it's easy to take for granted the enormous progress that has been made do you remember what it was like paying gas fees on ethereum in 2021 according to a16z it cost an average of $12 an e just to send some usdc of course in the thick of a bull run you could pay a whole lot more than that too since then layer 2s have slashed transaction fee costs by over 99% it now costs less than a penny on average to send usdc via base terrible news for eth Maxis I guess but this is fantastic news for everyone else especially if we want to get more people on chain at the same time blockchain throughput has increased dramatically blockchains now process 50 times as many transactions per second as they did 4 years ago go and you can see from the graph over here that we have salana and ethereum l2s to thank for this it's worth pointing out that this graphic doesn't include a lot of the New Kids on the blockchain your seis your apses you know the type what the report does show us though is the dramatic tvl growth of high throughput nonm chains like these namely Nia ton Aptos sui and salana throughout 2023 their combined tbll languished around $1 billion in 24 however saw a dramatic change in fortunes with combined tvl ripping to $15 billion naturally salana takes up the Lion Share here salana has got to take the award for the most successful blockchain this year by any measure but we knew that already if Su and Aptos want to live up to their salana killer nicknames they're going to have to try a little harder at the moment it looks a lot less like killing and more like toothless nipping at solano's ankles a bit like mooding they are very far behind indeed still despite being overshadowed by the original ethereum killer sui and Aptos have enjoyed significant tvl growth this year and remember once upon a time salana also had few users and low tvl too all it takes is one killer app or realistically one killer meme coin and we could see their tvl explod load the final section of this report shares the author's findings about crypto Builders specifically which chains they are building on what they are building and where in the world they are the first section here shows us Builder interest by blockchain this bubble map shows us quote the blockchains that Founders say they are or are interested in building on H being interested in doing something and actually doing it are two different things it would be really good to know where developers are actually doing stuff as a standalone point but okay Builder interest let's go with it there are no surprises in the top three ethereum dominance is at 20. 8% salana is second with 11. 2% and Bas is close behind with 10.

7% it's pretty impressive to see how base has managed to LeapFrog all of its al2 Brethren just 14 months after going live I guess that's what coinbase money gets you in interestingly the second most popular L2 is actually the oldest of the bunch polygon was the first widely adopted L2 and it's still attracting more developer interest than arbitrum optimism or any of the other shiny new l2s that nobody asked for that being said polygon is technically a side chain but uh who's paying attention to those details am all right behind the major al2s two chains are tied both with 4. 2% of the total Builder interest they are Avalanche and uh what's that orange thing some Japanese guys chain I think is probably going to zero anyway anyway on the right you can see how these Boulder interest data have changed since last year salana is up huge more than doubling the 5. 1% dominance it commanded in 2023 base is up 2.

9% and Bitcoin is up 1. 6% what we found most interesting is that ethereum's share has also increased by 1. 1 % an increase bigger than the l2s apart from base we have sometimes wondered if ethereum's many l2s will be a net negative in terms of developers leaving ethereum's layer one itself if Builder interest data or anything to go by it doesn't look like this is the case one al2 Reigns Supreme and is gaining developer interest probably at the expense of other al2s but not apparently the main chain interesting next up what are these Builders building more l2s probably well I joke but it's probably true because they are still coming out just this month Kraken and Unis swap announced their own l2s what's next metamask L2 wait I didn't say that we don't need them getting any ideas now ah too late they already have lanaa that was fast anyway blockchain infrastructure is indeed booming with developer activity accounting for 19.

1% of developer activity this is is notably up 2. 7% since last year and according to a16z the single biggest subcategory within blockchain infrastructure is oh it really is al2s if you're thinking don't we have enough blockchains now uh then don't worry because a lot of this developer activity will be people working on improving existing blockchains right now blockchain infrastructure is actually in second place so the top sector is D5 which accounts for 24. 8 8% of all projects being built this is up 3.