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a16z: STATE Of CRYPTO 2024

57 slides

State of Crypto 2024: Market, Technology, and Regulation Report

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Crypto market report
Blockchain infrastructure
Web3 adoption
Stablecoins
Zero knowledge proofs

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Description

Main Topic

State of Crypto 2024: Market, Technology, and Regulation Report

Key Benefits

  • •Data-driven analysis of crypto adoption comparable to early internet growth
  • •Insights into the political landscape and regulatory developments in the US and EU
  • •Detailed breakdown of infrastructure maturation including L2 scaling and ZK technologies
  • •Emerging application trends in stablecoins, AI integration, and decentralized social networks
  • •Comprehensive data on developer activity, geographic distribution, and tech stack preferences

Target Audience

  • •Venture Capitalists and Investors
  • •Blockchain Developers and Builders
  • •Policy Makers and Regulators
  • •Financial Strategists
  • •Tech Industry Analysts

Use Cases

  • •Market research for investment theses
  • •Strategic planning for web3 product development
  • •Regulatory briefing and policy advocacy
  • •Educational presentations on blockchain utility
  • •Benchmarking industry growth and developer trends

Unique Value Propositions

  • •Proprietary 'State of Crypto Index' data
  • •Visual evidence of drastic transaction cost reductions via L2 scaling
  • •Comparative analysis of AI and Crypto user overlap
  • •Global view of stablecoin adoption beyond speculation
  • •Builder energy dashboard insights

Slide Pages (57)

Detailed view of each slide page, including layout, key content and visual elements.

Page 1
Title Slide

Cover Slide

Content

State of Crypto 2024 report title card by a16z crypto.

Layout Structure

Minimalist title design with logo.

Key Visual Elements

  • •a16z crypto logo
  • •Large typography
Page 2
Legal/Disclaimer

Important Disclosures

Content

Legal disclaimers regarding investment advice, third-party sources, and data accuracy.

Layout Structure

Dense text block layout.

Key Visual Elements

  • •Fine print text
Page 3
Agenda

Table of Contents

Content

Agenda covering 6 main sections: Adoption, Politics, Infrastructure, Applications, Builders, and Future Outlook.

Layout Structure

Numbered list with section titles and page numbers.

Key Visual Elements

  • •Numbered list 01-06
Page 4
Section Header

Section 01: Adoption

Content

Section divider: How big is crypto today?

Layout Structure

Section header slide.

Key Visual Elements

  • •Large number 01
Page 5
Data Visualization

Adoption Curve

Content

220M monthly active addresses comparable to internet adoption in late 90s.

Layout Structure

Dual-line chart comparison (log scale).

Key Visual Elements

  • •Line chart
  • •Comparative timeline
Page 6
Data Visualization

Active Addresses by Chain

Content

Breakdown of activity across EVM and Non-EVM chains, highlighting Solana and Base growth.

Layout Structure

Horizontal bar chart.

Key Visual Elements

  • •Color-coded bars
  • •Metrics
Page 7
Data Visualization

Mobile Wallet Growth

Content

Record high mobile wallet use driven by Nigeria, India, and Argentina.

Layout Structure

Stacked area chart by country.

Key Visual Elements

  • •Stacked area chart
  • •Geographic legend
Page 8
Data Visualization

User Funnel

Content

Funnel analysis showing 617M owners vs 30-60M active users.

Layout Structure

Funnel graphic with metrics.

Key Visual Elements

  • •Large numbers
  • •Conversion flow
Page 9
Section Header

Section 02: Politics

Content

Section divider: Crypto has become a key political issue.

Layout Structure

Section header slide.

Key Visual Elements

  • •Large number 02
Page 10
Quotes/Testimonials

Bipartisan Support

Content

Quotes from key political figures in both parties supporting crypto innovation.

Layout Structure

Two-column quote layout.

Key Visual Elements

  • •Quote marks
  • •Photos of politicians
Page 11
Geographic Data

Swing State Interest

Content

Heat map showing rising search interest in swing states like PA and WI.

Layout Structure

US map visualization and ranked list.

Key Visual Elements

  • •Map heat map
  • •Bar chart
Page 12
Demographics

Voter Demographics

Content

40M+ American crypto owners are young and bipartisan.

Layout Structure

Infographic with pie charts.

Key Visual Elements

  • •Pie charts
  • •Key statistics
Page 13
Comparison

Global Regulation

Content

EU and UK leading in public engagement on crypto policy.

Layout Structure

Bar charts comparing jurisdictions.

Key Visual Elements

  • •Vertical and horizontal bars
Page 14
Timeline

Policy Milestones

Content

Key policy wins in 2024: DUNA, FIT21, and MiCA.

Layout Structure

Three-column timeline.

Key Visual Elements

  • •Icons
  • •Milestone text
Page 15
Financial Data

ETP Flows

Content

Bitcoin and Ethereum ETP approvals broadening investor access.

Layout Structure

Stacked bar charts of daily net flows.

Key Visual Elements

  • •Time-series charts
Page 16
Geographic Data

CBDC Global Status

Content

Map of Central Bank Digital Currency projects worldwide.

Layout Structure

World map status visualization.

Key Visual Elements

  • •World Map
  • •Color-coded legend
Page 17
Market Share

Stablecoins & USD

Content

99% of stablecoins are USD-denominated, strengthening the dollar.

Layout Structure

Pie charts and area chart.

Key Visual Elements

  • •Pie charts
  • •Percentage data
Page 18
Ranking

US Debt Holders

Content

Stablecoins (Tether/USDC) are top holders of US Treasury securities.

Layout Structure

Bar chart comparison vs countries.

Key Visual Elements

  • •Horizontal bars
  • •Logos
Page 19
Case Study

Inflation Case Study

Content

Stablecoin usage rising in high-inflation economies like Argentina.

Layout Structure

Dual-axis chart (Currency value vs Stablecoin volume).

Key Visual Elements

  • •Line chart
  • •Bar chart overlay
Page 20
Problem/Solution

Centralization Trends

Content

Consolidation in banking and big tech highlighting need for decentralization.

Layout Structure

Side-by-side comparison charts.

Key Visual Elements

  • •Bar chart
  • •Area chart
Page 21
Section Header

Section 03: Infrastructure

Content

Section divider: Infrastructure is maturing.

Layout Structure

Section header slide.

Key Visual Elements

  • •Large number 03
Page 22
Flow Chart

Blockchain Interoperability

Content

USD flows between various blockchains (bridging).

Layout Structure

Sankey diagram.

Key Visual Elements

  • •Flow lines
  • •Chain logos
Page 23
Impact Analysis

L2 Fee Reduction

Content

Impact of EIP-4844 on Ethereum L2 fees.

Layout Structure

Stacked area chart with event marker.

Key Visual Elements

  • •Area chart
  • •Annotation
Page 24
Comparison

Transaction Cost Comparison

Content

Comparison of international transfer costs: Wire vs L2 (<$0.01).

Layout Structure

Vertical list with cost metrics.

Key Visual Elements

  • •Large price tags
  • •Arrow indicator
Page 25
Market Growth

Non-EVM Growth

Content

TVL growth in high-throughput chains like Solana and Sui.

Layout Structure

Stacked area chart.

Key Visual Elements

  • •Stacked area chart
Page 26
Data Visualization

Throughput Capacity

Content

50x increase in blockchain transactions per second since 2020.

Layout Structure

Dot matrix density visualization.

Key Visual Elements

  • •Dot grid comparison
Page 27
Technical Features

Account Abstraction

Content

Growth in smart contract wallet operations improving UX.

Layout Structure

Bar chart with feature list.

Key Visual Elements

  • •Stacked bar chart
  • •List
Page 28
Technology Trends

ZK Proofs

Content

Rising monthly spend on ZK proof verification and project count.

Layout Structure

Bar and line combo chart.

Key Visual Elements

  • •Combo chart
Page 29
Ecosystem Map

ZK Coprocessors

Content

New computing paradigm for blockchains with use cases.

Layout Structure

Logo grid with use case categories.

Key Visual Elements

  • •Logos
  • •Text columns
Page 30
Technical Benchmarking

zkVM Progress

Content

zkVM performance improvements vs historical CPU clock speeds.

Layout Structure

Scatter plot regression.

Key Visual Elements

  • •Scatter plot
  • •Trend line
Page 31
Composition Change

Staking Ecosystem

Content

Growth of staked ETH and re-staking protocols.

Layout Structure

Three sequential pie charts.

Key Visual Elements

  • •3D Pie charts
Page 32
Section Header

Section 04: Applications

Content

Section divider: Key applications are emerging.

Layout Structure

Section header slide.

Key Visual Elements

  • •Large number 04
Page 33
Market Segmentation

App Categories

Content

Breakdown of daily active addresses by category (DeFi, Stablecoins, etc.).

Layout Structure

Treemap visualization.

Key Visual Elements

  • •Colored blocks
  • •Percentage labels
Page 34
Competitive Analysis

Stablecoin Adoption

Content

Stablecoin volume comparison against traditional payment rails.

Layout Structure

Stacked bar chart and comparison table.

Key Visual Elements

  • •Data table
  • •Charts
Page 35
Trend Analysis

Stablecoin Resilience

Content

Stablecoin activity growth independent of market cycles.

Layout Structure

Overlay chart (Volume vs Users).

Key Visual Elements

  • •Line and bar combo
Page 36
Problem Statement

AI Costs

Content

Exponential rise in AI training compute costs favors centralization.

Layout Structure

Scatter plot with regression line.

Key Visual Elements

  • •Log scale chart
Page 37
Solutions Framework

Crypto Solutions for AI

Content

Blockchain solving AI issues: Authenticity, Compute Access, Transparency, Ownership.

Layout Structure

Four value-prop columns.

Key Visual Elements

  • •Text columns
  • •Stats
Page 38
Audience Analysis

Crypto x AI Overlap

Content

High user overlap between crypto and AI platforms.

Layout Structure

Bar charts ranking websites and narratives.

Key Visual Elements

  • •Horizontal bars
Page 39
Market Trends

NFT Market Evolution

Content

Shift towards low-cost social collecting on L2s.

Layout Structure

Bar/Line combo chart (Volume vs Collections).

Key Visual Elements

  • •Diverging trend lines
Page 40
Trend Spotting

Memecoin Proliferation

Content

Explosion of memecoin creation on Solana.

Layout Structure

Bar chart and list screenshot.

Key Visual Elements

  • •Pink bar chart
Page 41
Market Landscape

DeFi Protocol Landscape

Content

Top DeFi categories by TVL (Liquid Staking, Lending, DEXes).

Layout Structure

Horizontal bar chart with logos.

Key Visual Elements

  • •Protocol icons
Page 42
Market Share

DEX Trading Volume

Content

Share of trading volume shifting to decentralized exchanges.

Layout Structure

Line chart showing percentage.

Key Visual Elements

  • •Line chart
Page 43
Security Analysis

Security Trends

Content

DeFi share of hacked value decreasing as security improves.

Layout Structure

Stacked bar chart with trend line.

Key Visual Elements

  • •Stacked bars
  • •Trend line
Page 44
Product Growth

Prediction Markets

Content

Growth of prediction markets like Polymarket during election year.

Layout Structure

Bar chart and interface screenshot.

Key Visual Elements

  • •Chart
  • •UI Screenshot
Page 45
Financial Analysis

DAO Treasuries

Content

Large liquid capital reserves held by DAO treasuries.

Layout Structure

Bar comparison and pie chart.

Key Visual Elements

  • •Bar chart
  • •Pie chart
Page 46
Case Studies

DePIN Examples

Content

Real-world physical infrastructure networks (Helium, Hivemapper).

Layout Structure

Project cards with metrics.

Key Visual Elements

  • •Photos
  • •Stats
Page 47
Performance Metrics

Blockchain Gaming

Content

High-throughput gaming chains and gas usage metrics.

Layout Structure

Data table.

Key Visual Elements

  • •Grid
  • •Highlighted rows
Page 48
Ecosystem Overview

Decentralized Social

Content

Farcaster ecosystem projects and user growth.

Layout Structure

Ecosystem map and area chart.

Key Visual Elements

  • •Lists
  • •Chart
Page 49
Section Header

Section 05: Builders

Content

Section divider: What we know about crypto's builders.

Layout Structure

Section header slide.

Key Visual Elements

  • •Large number 05
Page 50
Developer Statistics

Builder Interest

Content

Share of builder interest by blockchain (Ethereum, Solana, Base).

Layout Structure

Bubble chart and ranking table.

Key Visual Elements

  • •Bubble visualization
Page 51
Sector Analysis

Builder Categories

Content

Top sectors for builders: DeFi, Infrastructure, Social.

Layout Structure

Treemap with growth tags.

Key Visual Elements

  • •Treemap
  • •Labels
Page 52
Tech Stack

Technology Stack

Content

Usage of AI, NFTs, and ZK across different project types.

Layout Structure

Sankey-style block diagram.

Key Visual Elements

  • •Flow blocks
Page 53
Section Header

Section 06: Outlook

Content

Section divider: What's next for crypto?

Layout Structure

Section header slide.

Key Visual Elements

  • •Large number 06
Page 54
Geographic Distribution

Builder Geography

Content

Global distribution of crypto projects; US, Europe, and Asia hubs.

Layout Structure

World map with bubble markers.

Key Visual Elements

  • •Map
  • •Data table
Page 55
Market Cycle

Price-Innovation Cycle

Content

Historical market cycles showing correlation between price and innovation.

Layout Structure

Stacked timeline charts.

Key Visual Elements

  • •Waveform charts
Page 56
Conclusion

Future Predictions

Content

Strategic thoughts on regulation, scaling, and killer apps.

Layout Structure

Text card grid.

Key Visual Elements

  • •Highlighted text
Page 57
End Screen

Resources

Content

Links to dashboards, podcasts, and newsletters.

Layout Structure

Resource grid with CTAs.

Key Visual Elements

  • •Thumbnails
  • •Buttons

Frequently Asked Questions

Common questions about this slide and the underlying presentation content.

What does the 'Price-Innovation Cycle' refer to?

It is a framework suggesting that crypto market price increases drive interest and funding, which in turn leads to developer innovation and new products, eventually restarting the cycle. The report suggests the market is entering a new wave of this cycle.

How have transaction costs changed on Ethereum recently?

Following the EIP-4844 upgrade in March 2024, transaction fees on Layer 2 networks like Base have dropped significantly, often costing less than $0.01 per transaction, making them competitive with traditional payment methods.

Is there actual utility for crypto beyond trading?

Yes, the report highlights stablecoins processing $8.5 trillion in volume (double Visa's volume), decentralized physical infrastructure (DePIN) projects like Helium, and blockchain solving AI content authenticity issues.

Which blockchains are attracting the most developers?

Ethereum retains the largest share of builder interest at roughly 21%, but Solana and Coinbase's Base network have seen significant growth in developer share in 2024.

How is the political landscape affecting crypto?

Crypto has become a bipartisan issue in the US, with politicians from both major parties expressing support for innovation. Additionally, swing states like Pennsylvania and Wisconsin are showing disproportionately high interest in crypto.

What is the relationship between AI and Crypto in the report?

The report identifies a strong overlap in user bases and notes that blockchain can address AI challenges such as centralized control and data provenance. Approximately 34% of crypto projects are now incorporating AI elements.

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