- Crypto adoption reached record levels, driven by increasing blockchain activity and stablecoin usage.
- Political interest in crypto is rising and legislative clarity is gaining bipartisan momentum in the US
Crypto adoption has surged in the past year, marking 2024 as a pivotal year for the industry.
The recently released 2024 State of Crypto Report highlights this rapid transformation and highlights that crypto activity has reached record levels.
a16z crypto report revelation
Just two years ago, digital assets were not a priority for politicians. Bitcoin [BTC] and Ethereum [ETH] ETPs had not yet received SEC approval, and ETH was still working on its energy-intensive proof-of-work model.
Today, the crypto landscape reflects remarkable progress, underscoring its evolution from niche to mainstream. This signals its growing influence on both financial markets and regulatory agendas.
On a note to the same, the report noted,
“There have never been more monthly active crypto addresses. In September, 220 million addresses interacted with a blockchain at least once, a number that has more than tripled since the end of 2023.”
Source: a16zcrypto.com
The report also shows that Solana [SOL] leading the increase in blockchain activity with more than 100 million active addresses in September alone.
New blockchains such as NEAR and Base have also become increasingly popular, attracting 31 million and 22 million active users respectively.
Source: a16zcrypto.com
In contrast, some of the more established networks, including Tron and Bitcoin, reported 14 million and 11 million active addresses, respectively. While Ethereum, while still influential, only saw around 6 million active addresses.
This growth across both newer and established networks highlights the evolving preferences of crypto users.
The role of stablecoins and elections
The report also highlights stablecoins as a central force behind crypto’s rapid growth. These US dollar pegged assets are seeing significant adoption along with decentralized finance [DeFi].
Although DeFi currently leads in daily active addresses with 34%, stablecoins followed closely behind with 32%, underscoring their increasing role in the ecosystem.
Source: a16zcrypto.com
Infrastructure also maintains a solid position and accounts for approx. 14% of the active addresses.
In particular, crypto interest has grown in politically influential swing states, such as Pennsylvania and Wisconsin, since the last election.
“Crypto has become a central political issue ahead of the US election,” 16z said.
In previous reports, a16z consistently emphasized US regulatory uncertainty as a key obstacle. This year’s analysis, however, brings crypto’s growing role in the political discourse to the fore.
The report revealed increasing cross-party efforts towards legislative clarity. This marks a shift in government approach as crypto gained traction in critical swing states like Pennsylvania and Wisconsin.
Source: a16zcrypto.com
What’s more to it?
All in all, this development highlights crypto’s evolving influence not only in the technology and financial sectors, but also in the political sphere, where clear guidelines will be crucial for future growth
However, despite some declines in core indicators such as active and interested developers, a16z’s ‘State of Crypto Report’ suggests a robust outlook for the industry.
By prioritizing and weighing specific progress metrics, the index indicates that crypto’s overall progress is near record highs.