On Tuesday, a venture capital firm, a16z launched the State of Crypto Index to efficiently track the growth of the industry. In a recent blog post, the firm explained that the tool is designed in a way that it track the health of the crypto industry through a technological angle. Reportedly, it will help reveal the weighted average monthly growth amidst a set of key industry indices.
According to a16z, users will be able to access the metrics which represent a collection of supply-side and demand-side measurements. Meanwhile, these metrics illustrates the prevailing innovation and level of adoption of web3. The venture capital firm added that the default view of the metrics on Index will feature just a single interpretation of data weighted in line with its preferences.
a16z, however, called for wide exploration of the tool. According to the firm, users can now adjust the parameters of index by themselves. In the future, it plans to upgrade the tool to meet up with the emerging trends in the industry.
a16z unveils its 2023 state of crypto report
In the same announcement, a16z unveiled its 2023 state of crypto report. The firm, in the report, highlighted about seven trends unfolding in the crypto industry this year. One of it is the growing adoption of blockchain by active users. According to a16z, more unique addresses are now transacting on-chain every month. In the past month, the protocol said it discovered at least 15 million sending addresses. This, as revealed, is twice the number recorded about two years ago. With this, the report affirmed that the overall transactions on blockchains have grown by 50% in the past few years.
Additionally, the a16z report also affirmed that DeFi and NFT activities are currently on the rise. It justified its claim by comparing the trading volume of Uniswap, a decentralized exchange and Coinbase, a centralized exchange. According to a16z, Uniswap saw a better trading volume than Coinbase in the past two months.
More so, the report noted that there are more active developers in the industry today than in the past two years. As revealed, the industry boasts of 30,000 monthly active developers, representing a 60% increase since 2020. Notably, a16z, in the report, also talked about how the U.S is losing its place as the leader of web3. As revealed, the country saw a decline in the percentage of its residential developers when compared with the rest of the world.
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