State of Crypto 2024: Builder Energy, U.S. Election, Stablecoins, AI, More

Key takeaways

The estimated number of real crypto users globally is between 30 to 60 million, reflecting a growing interest in the space.
Infrastructure improvements have significantly reduced transaction costs, making it easier for users to engage with crypto applications.
Stablecoins are gaining renewed attention as a means of payment due to lower fees and better integration into existing financial systems.
Emerging applications point to a future where crypto becomes more seamlessly integrated into daily activities and social networking.
The political conversation around crypto is evolving, with increased interest from voters suggesting it could impact upcoming elections.

Summary

Overview of the State of Crypto Report 2024

In this episode, the hosts dive into the latest insights from the annual State of Crypto Report by a16z crypto, highlighting the significant changes and trends in the crypto landscape over the past year. They discuss various aspects such as user growth, infrastructure enhancements, and application developments, setting the stage for a nuanced understanding of the evolving crypto market.

User Growth and Market Insights

The hosts discuss the estimated number of real crypto users globally, arriving at a range of 30 to 60 million active transacting users. They emphasize the importance of understanding how growth data is derived and filtered from the total active addresses on different blockchains, taking into account transient and bot-like activities.

Infrastructure Improvements and Its Impact

Infrastructure advancements in blockchain technology have greatly lowered transaction costs, fostering the development of practical applications. The emergence of low-cost stablecoins and new decentralized applications shows the impact of reduced transaction fees and greater accessibility for users.

The Role of Stablecoins in Payments

Stablecoins are increasingly seen as viable payment methods again, thanks to infrastructure developments that have brought transaction costs down significantly. The hosts highlight how this shift could lead to broader acceptance and innovative use cases for stablecoin transactions in everyday scenarios.

Emerging Applications in Crypto

The conversation covers several new areas of innovation spurred by low fees and better infrastructure, including decentralized social networks, DePIN (decentralized physical infrastructure networks), and prediction markets. These developments point towards a future where crypto applications become more integrated into everyday use.

Political Engagement and Crypto in the Election Cycle

As the U.S. election approaches, discussions about crypto have become more prevalent among politicians and potential voters. The hosts detail a Google Trends analysis showing increased interest in crypto in key swing states, suggesting that electoral candidates may need to address crypto-related issues to connect with voters.

Show notes

We take you behind the scenes of our newly released, annual State of Crypto Report — a16z crypto's analysis of the latest data and trends that have defined the industry in 2024.

This year's report features some brand new insights, from estimating the number of real crypto users globally, to understanding how much interest in crypto swing states may have ahead of the U.S. election. We also dig into infrastructure improvements to blockchains and key applications — including stablecoins, AI, and so-called DePIN. Be sure to visit a16zcrypto.com for all this and more including a new “Builder Energy” dashboard, which we’ll discuss on the show.

Joining me to talk about the findings are lead data scientist and report author Daren Matsuoka and CTO Eddy Lazzarin. The first voice you'll hear after mine is Daren's, then Eddy's.

a16z crypto resources:

-State of Crypto Report 2024

-Builder Energy dashboard

-Estimating the number of real crypto users

by Daren Matsuoka and Eddy Lazzarin

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