What Does the 2024 Crypto Status Report Tell Us? – Part 2

We continue to review the 2024 Crypto Status Report prepared by A16z Crypto. Enjoy reading!

The report says that since 2020, decentralized exchanges have grown, accounting for 10% of crypto activity (spot). However, 34% of daily active addresses occur in the DeFi space; This means that the most crypto usage occurs in the DeFi field. Additionally, the most important DeFi subcategories are staking and money markets.

It has been stated that more scalable infrastructures reveal new on-chain applications.

It has been highlighted that NFTs have transitioned from speculation in high-volume secondary markets to low-cost social collection experiences.

In summary, it has been signaled that the new era has begun for NFTs.

Flow of dollar liquidity between different blockchain networks in the last 12 months; It shows that with the introduction of second layer solutions, multichain and interoperability are at a high level.

If we had talked about interoperable blockchains five years ago, they would have been said to be selling dreams. But today we’re at a point where it’s not hard to imagine the next five years of interoperability.

The visual in the report reveals the deep relationship between artificial intelligence and crypto. While one third of crypto projects include artificial intelligence; This rate, which was 27% last year, has now reached 34%.

With the increase in the number of content producers, the rate of crypto projects being related to social networks this year was 10.3%, thanks to high producer activity. We may be likely to encounter more projects in this category in the future.

Easier access to ETFs (funds that enable cryptocurrencies—BTC, ETH—to be bought and sold indirectly on the stock exchange) increases the number of users in the United States who buy and “hodl” crypto assets. Currently, BTC and Ethereum ETFs contain over $89 billion in on-chain assets. This situation may also affect the elections and bring the crypto ecosystem into an increasingly stronger cycle.

Following the SEC’s ETP approvals, MiCa coming into force in Europe at the end of the year, Wyoming’s enactment of the DUNA law for DAOs, and Opposition and Opposition groups making positive statements about crypto show us that significant progress has been made in the global regulation process of crypto.

While there is a major shakeup in the position of the US dollar as the reserve currency, the understanding that stablecoins can strengthen the international position of the US, and especially the fact that they find a place in some bills circulating in the US Congress, is the most important indicator of the critical role that these assets will assume in the future. This development could be an extremely valuable leap forward for crypto to reach the next 1 billion users.

With the emergence of L2 networks and next-generation blockchains, one of the five most popular developer subcategories, there are 50 times more transactions per second than four years ago, according to the report. The capacity of blockchains is expanding, and with the updates, there are significant decreases in transaction fees in the networks. A similar situation occurs with ZKP (Zero Knowledge Proof) verification costs. In summary, we can say that as blockchain networks become more efficient, their awareness also increases.

See you in the next article.