New record as blockchains reach 220 million active addresses: a16z

A new “State of Crypto” report from venture capital firm Andreessen Horowitz (a16z) shows that the blockchain space reached all-time highs in usage and activity.

According to the paper, 220 million addresses interacted with a blockchain at least once in September 2024, three times the number recorded at the end of 2023.

Solana has the largest number of active users

Most of the activity came from Solana, which had 100 million active users, followed by NEAR, which had 31 million. Coinbase’s Layer 2 (L2) network, Base, was third, with 22 million wallets engaging it at least once, while 14 million interacted with Justin Sun’s Tron network.

For its part, Bitcoin cataloged 11 million unique users, followed in sixth place by Binance’s BNB Chain, which had one million less.

Additionally, interest in Solana among blockchain builders grew 11.2% from a more modest 5.1% in 2023. There was also enthusiasm for Base, with its total builder share rising jump 10.7% compared to 7.8% last year.

Also, the number of crypto founders interested in the Bitcoin ecosystem increased to 4.2%, a slight increase from the 2.6% that showed no attraction for the network in 2023.

Another notable revelation from the a16z study is the explosive growth of stablecoins, which have overtaken traditional payment systems. In the second quarter of 2024, they processed $8.5 trillion in volume, more than double Visa’s $3.9 trillion in the same period.

Commenting on the report, a16z researcher Darren Matsuoka said that stablecoins have become the prominent “killer app” in the crypto ecosystem, driven primarily by minimal transaction fees. He noted that sending USDC to L2 networks like Base now costs less than a cent, a stark contrast to the high average fee of $44 for international wire transfers.

The Growing Role of Crypto in US Politics

In addition, the document indicated that cryptography has become a major political issue, with the US election expected in the coming weeks.

Both Donald Trump and Vice President Kamala Harris have made overtures to the crypto community to varying degrees. A recent Galaxy Research poll shows that while Trump is more favored, the community is optimistic that Harris can provide more industry support than Biden.

Google Trends data shows that swing states like Pennsylvania and Wisconsin had seen an increase in cryptocurrency search interest, placing them among the top five states with the highest growth in cryptocurrency curiosity.

Other key battlegrounds where crypto interest surged include Michigan and Georgia, with the opposite in Arizona and Nevada.

According to a16z, one of the reasons for the increased fascination with digital assets is the list of spot ETFs for Bitcoin and Ethereum. Together, these products currently have close to $90 billion in chain holdings.

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