Cryptocurrencies can be volatile and chaotic, but they reflect the continued robust long-term growth of an industry that is in the middle of the fourth price-innovation cycle. Analysts Andreessen Horowitz (a16z) write about this.
1️⃣ Crypto is in the middle of a 4th “price-innovation” cycle.
Crypto can be volatile and appear chaotic, but there is an underlying logic at work, as @cdixon & @eddylazzarin first pointed out in 2020: https://t.co/g8OriZSgSt pic.twitter.com/ukS0MXhh8y
— a16z (@a16z) May 17, 2022
Experts linked the further growth of the market with the transition to Web 3.0, which will “create the best opportunities in the decade”. They referred to the fact that currently the OpenSea audience is no more than 2.5% of Internet users. For YouTube it is 45%, and for Meta platforms it is close to 100%.
Implementation of the Web 3.0 vision will create a fairer economic environment for content creators compared to the current era Web 2.0experts are convinced.
Analysts calculated that Spotify, YouTube, and Meta paid out $636, $2.47, and $0.1 per artist, channel, and user, respectively. The same metric in relation to NFTs, taking into account royalties, using the example of OpenSea, reaches an average of $174,000.
The influence of cryptocurrencies on the world is also manifested in DeFi, noted in a16z. In less than two years TVL has exceeded $100 billion from zero. With the help of a smartphone, protocols can close the gaps for 1 billion people who do not have access to financial services. You can add to them many who do not receive the full range of services.
Experts emphasized that there are also projects in the industry that destroy existing monopolies or solve important social problems using the example of Goldfinch, Spruce, Helium, Sound, Flowcarbon and others.
a16z believes that several networks will form Web 3.0. In addition to the obvious leader Ethereum, Solana, Polygon, BNB Chain, Avalanche and Fantom are trying to repeat its success.
Cryptocurrencies are still taking the first steps in their development, experts emphasized.
“According to our estimates, there are between 7 and 50 million active Ethereum users today. Compared to the Internet, this is the situation of 1995. Cryptocurrencies are much more than just a financial innovation – they are also social, cultural and technological.” they concluded.
Recall that in April a16z opened a division for research on cryptocurrencies and other technologies related to Web 3.0.
Former crypto-focused a16z partner Chris Dixon topped the rating of venture investors according to Forbes.
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