The 2024 State of Crypto Report from a16z reveals a transformative year for blockchain technology and digital assets. With on-chain activity reaching record highs, stablecoins solidifying their role as a foundational use case, infrastructure upgrades slashing transaction costs, and growing convergence between crypto and artificial intelligence (AI), the ecosystem is entering a new phase of maturity and real-world utility.
This comprehensive analysis highlights not only technological breakthroughs but also shifts in policy, user behavior, and builder sentiment across the globe. As blockchain networks scale and become more accessible, new consumer applications—from social platforms to AI-integrated tools—are emerging at an accelerating pace.
To support deeper insights, a16z has launched the Crypto Builder Energy Dashboard, a proprietary tool aggregating thousands of data points from startup applications, investment research, and industry tracking. The dashboard offers anonymized, aggregated views into where developers are building, what blockchains they’re choosing, and which application categories are gaining momentum.
Below are the seven core findings from the 2024 report—each offering critical context for investors, builders, and observers navigating the evolving crypto landscape.
1. Crypto Activity and Usage Hit All-Time Highs
Active blockchain addresses have surged to unprecedented levels. In September 2023 alone, over 220 million addresses interacted with a blockchain at least once—a more than threefold increase since late 2023. While active address counts can be manipulated and should be interpreted cautiously, they remain a useful proxy for network engagement.
The growth is largely driven by Solana, which accounts for nearly 100 million of those active addresses. Other major contributors include NEAR (31 million), Base (22 million), Tron (14 million), and Bitcoin (11 million). Among EVM-compatible chains, BNB Chain follows Base with 10 million active addresses, while Ethereum maintains 6 million.
👉 Discover which blockchain is attracting the most developer momentum in 2024.
Developer interest mirrors this trend. According to the Builder Energy Dashboard, the share of founders building or interested in building on Solana jumped from 5.1% in 2023 to 11.2% in 2024—the largest year-over-year shift of any platform. Base rose from 7.8% to 10.7%, and Bitcoin from 2.6% to 4.2%.
Despite this surge in competition, Ethereum remains the top choice for builders, capturing 20.8% of developer interest, followed by Solana and Base. Other notable ecosystems include Polygon (7.9%), Optimism (6.7%), Arbitrum (6.2%), and Avalanche (4.2%).
User adoption is also expanding rapidly. In June 2024, monthly active mobile crypto wallets reached 29 million, a new all-time high. While the U.S. leads in absolute numbers (12% of total users), its relative share is declining as adoption grows globally—especially in regions like Nigeria, India, and Argentina.
Nigeria has seen strong growth due to regulatory clarity and rising use in retail payments. India’s mobile-first population continues to drive wallet adoption. In Argentina, economic instability has pushed many toward stablecoins as a hedge against inflation.
Estimating actual active users remains complex, but combining multiple metrics suggests 30 to 60 million monthly active crypto users worldwide—representing roughly 5–10% of the estimated 617 million crypto holders globally.
This gap underscores a major opportunity: reactivating dormant holders. With improved infrastructure enabling faster, cheaper experiences, more passive investors may soon become active participants.
2. Crypto Emerges as a Key Political Issue in the U.S. Election
For the first time, crypto has entered the mainstream political conversation ahead of the 2024 U.S. election. Google Trends data shows heightened search interest in key swing states: Pennsylvania and Wisconsin rank fourth and fifth in crypto-related searches since 2020, while Michigan has seen a sharp rise.
One catalyst is the approval and launch of spot Bitcoin and Ethereum exchange-traded products (ETPs) by the SEC—marking a major regulatory milestone. These ETPs have already amassed $65 billion in assets, broadening access for retail and institutional investors.
It’s worth noting these are technically ETPs (not ETFs), registered under SEC Form S-1, indicating their underlying assets aren’t classified as securities—a crucial distinction with long-term implications.
Congressional momentum is also building. The House passed the FIT21 Act with strong bipartisan support (208 Republicans, 71 Democrats), aiming to clarify regulatory oversight for digital assets.
At the state level, Wyoming’s DUNA Act grants legal recognition to decentralized autonomous organizations (DAOs), allowing them to operate without sacrificing decentralization—a landmark for on-chain governance.
Globally, the EU leads in regulatory clarity with MiCA (Markets in Crypto-Assets Regulation) set to fully take effect by year-end. The U.K. and other jurisdictions are also advancing public consultations.
Stablecoins are central to these discussions. Over 99% are pegged to the U.S. dollar, reinforcing dollar dominance even as its global reserve status faces pressure. Remarkably, stablecoins now rank among the top 20 holders of U.S. debt—surpassing nations like Germany.
👉 See how stablecoins are reshaping global financial power dynamics.
3. Stablecoins Achieve Product-Market Fit
Stablecoins have emerged as one of crypto’s first true “killer apps,” enabling fast, low-cost cross-border payments. As Congressman Ritchie Torres noted, “Dollar-pegged stablecoins could become the largest financial inclusion experiment in human history.”
Infrastructure improvements have made stablecoin transactions dramatically cheaper. On Ethereum, average gas fees for USDC transfers dropped from $12 in 2021 to just **$1 in 2024. On Base, fees average less than one cent**.
Compare that to traditional wire transfers—averaging $44—and the efficiency gains are undeniable.
In Q2 2024 alone, stablecoins processed **$8.5 trillion across 1.1 billion transactions**, more than double Visa’s $3.9 trillion volume in the same period. They now sit alongside legacy systems like PayPal, ACH, and Fedwire in financial conversations.
Crucially, stablecoin usage is decoupled from market cycles. Even when spot trading volumes decline, the number of addresses sending stablecoins continues to rise—suggesting real utility beyond speculation.
By daily active address share, stablecoins account for 32% of on-chain activity, second only to DeFi (34%). The rest is distributed across infrastructure (bridges, oracles), NFTs, gaming, and social applications.
4. Infrastructure Upgrades Slash Costs and Boost Capacity
The rise of stablecoins and new applications is powered by massive infrastructure gains.
Blockchain throughput has increased over 50x since 2020, thanks to Layer 2s and high-performance blockchains like Solana and NEAR.
Ethereum’s Dencun upgrade (EIP-4844) in March 2024 slashed L2 transaction costs by introducing proto-danksharding—reducing data storage burdens on Layer 1.
Even as L2 usage grows, fees continue to fall—a rare win-win in tech scalability.
Zero-knowledge (ZK) proofs are another breakthrough. Despite lower verification costs on Ethereum, ZK rollups are seeing rising TVL—proving that efficiency and adoption can grow together.
While ZK virtual machines (zkVMs) still lag behind traditional computing performance, they open doors for verifiable, private computation—critical for future decentralized AI and identity systems.
5. DeFi Remains Strong—and Growing
DeFi dominates both builder interest and on-chain usage (34% of daily activity). Over $169 billion is locked across thousands of protocols, with major growth in lending, borrowing, and staking.
Since Ethereum’s shift to proof-of-stake two years ago, staked ETH has risen from 11% to 29% of total supply, enhancing network security.
DeFi offers a compelling alternative to increasingly centralized traditional finance—where just a few banks control most assets despite a two-thirds decline in bank numbers since 1990.
6. Crypto Can Solve Pressing AI Challenges
AI is now one of the most discussed topics in crypto circles—with significant overlap between AI and crypto audiences.
Per the Builder Energy Dashboard, 34% of crypto projects now integrate AI, up from 27% last year—especially in infrastructure layers.
As AI model training costs grow fourfold annually, only large tech firms may afford cutting-edge development—leading to dangerous centralization.
Blockchain offers solutions:
- Gensyn: Decentralizes AI compute
- Story: Tracks IP to reward creators
- Near: Runs AI on open, user-owned protocols
- Starling Labs: Verifies digital media authenticity
Together, these efforts could democratize AI access and accountability.
7. Scalability Unlocks New Consumer Applications
Lower costs enable new behaviors:
- NFTs: Shift from high-value trading to low-cost social minting on platforms like Zora
- Social: Projects like Farcaster rank among top builder categories (10.3% of total)
- Gaming: Titles like Pirate Nation push rollup gas limits
- Prediction Markets: Gaining traction despite U.S. legal hurdles
As infrastructure improves along the classic cost-performance curve, these use cases will flourish further.
Frequently Asked Questions
Q: What is the most widely used stablecoin?
A: USDC is one of the most trusted dollar-pegged stablecoins, widely used across Ethereum L2s and other blockchains due to its transparency and regulatory compliance.
Q: How do Layer 2 networks reduce Ethereum fees?
A: L2s process transactions off-chain and batch them onto Ethereum’s mainnet, reducing congestion and gas costs while maintaining security.
Q: Why are more developers choosing Solana?
A: Solana offers high speed, low fees, and strong tooling—making it ideal for consumer apps like payments and social platforms.
Q: Are DeFi protocols safe for beginners?
A: While DeFi offers high yields, it comes with risks like smart contract vulnerabilities and impermanent loss. Beginners should start small and use audited platforms.
Q: Can blockchain really decentralize AI?
A: Yes—by distributing compute power, verifying model integrity, and ensuring creator compensation through tokens and NFTs.
Q: What impact will MiCA have on global crypto markets?
A: MiCA sets a precedent for clear regulation, potentially encouraging other regions to adopt balanced frameworks that protect users without stifling innovation.
The past year marks undeniable progress across policy, technology, and adoption. With breakthrough products poised to emerge—much like ChatGPT did for AI—the next wave of crypto innovation may be just beginning.