{"id":448665,"date":"2022-05-18T04:52:34","date_gmt":"2022-05-18T01:52:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereums-popularity-a-double-edged-sword-a16zs-state-of-crypto-report\/"},"modified":"2022-05-18T04:52:34","modified_gmt":"2022-05-18T01:52:34","slug":"ethereums-popularity-a-double-edged-sword-a16zs-state-of-crypto-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereums-popularity-a-double-edged-sword-a16zs-state-of-crypto-report\/","title":{"rendered":"# Ethereum\u2019s popularity &#8216;a double-edged sword\u2019 \u2014 a16z&#8217;s State of Crypto Report"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40f98d6b9d9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40f98d6b9d9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereums-popularity-a-double-edged-sword-a16zs-state-of-crypto-report\/#%E2%80%9D_Ethereums_popularity_%E2%80%98a_double-edged_sword_%E2%80%94_a16zs_State_of_Crypto_Report_%E2%80%9C\" >&#8221; Ethereum\u2019s popularity &#8216;a double-edged sword\u2019 \u2014 a16z&#8217;s State of Crypto Report &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ethereums_popularity_%E2%80%98a_double-edged_sword_%E2%80%94_a16zs_State_of_Crypto_Report_%E2%80%9C\"><\/span>&#8221; Ethereum\u2019s popularity &#8216;a double-edged sword\u2019 \u2014 a16z&#8217;s State of Crypto Report &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Crypto venture fund giant Andreessen Horowitz (a16z) has highlighted that development and demand on Ethereum is \u201cunmatched\u201d despite the network\u2019s high transaction fees.<\/p>\n<p>The firm does warn, however, that its \u201cpopularity is also a double-edged sword\u201d given Ethereum prioritizes decentralization over scaling, resulting in competing blockchains stealing market share with \u201cpromises of better performance and lower fees.\u201d<\/p>\n<p>The comments came via a blog post introducing a16z\u2019s 2022 \u201cState of Crypto\u201d report, with the firm\u2019s data scientist Daren Matsuoka, head of protocol design and engineering Eddy Lazzarin, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> Partner Chris Dixon, and head of content Robert Hackett all working together to provide five key takeaways from the study. <\/p>\n<p>Outside of Ethereum, the report focuses on topics such as Web3 development, crypto adoption rates, decentralized finance (DeFi) and stablecoins. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Introducing a16z\u2019s 2022 State of Crypto Report  <\/p>\n<p>A lot has changed since we started investing in crypto nearly a decade ago. <\/p>\n<p>Here are 5 key takeaways from the a16z crypto web3 industry survey and data analysis by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DarenMatsuoka?ref_src=twsrc%5Etfw\">@darenmatsuoka<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/eddylazzarin?ref_src=twsrc%5Etfw\">@eddylazzarin<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cdixon?ref_src=twsrc%5Etfw\">@cdixon<\/a> &amp; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rhhackett?ref_src=twsrc%5Etfw\">@rhhackett<\/a> \u2b07\ufe0f <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/JFLXbNh03u\">pic.twitter.com\/JFLXbNh03u<\/a><\/p>\n<p>\u2014 a16z (@a16z) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/a16z\/status\/1526524210927083520?ref_src=twsrc%5Etfw\">May 17, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nAccording to data from the report, Ethereum towers over the competition in terms of builder interest, as the network has around 4,000 active monthly developers compared to second-ranked Solana (SOL) at 1,000. Bitcoin (BTC) and Cardano (ADA) are next in line at roughly 500 and 400 apiece. <\/p>\n<p>The analysts noted that \u201cEthereum\u2019s lead has much to do with its early start, and, the health of its community\u201d but emphasized the significance of development continuing to surge on the network despite high transaction costs: <\/p>\n<blockquote><p>\u201cEthereum\u2019s overwhelming mindshare helps explain why its users have been willing to pay more than $15 million in fees per day on average just to use the blockchain \u2014 remarkable for such a young project.\u201d<\/p><\/blockquote>\n<p>The demand for Ethereum can also be seen across the report\u2019s estimated transaction fees paid on a blockchain over a seven-day average (calculated as of May 12), with the data showing that Ethereum accounts for $15.24 million. To provide contrast, BNB Chain, Avalanche, Fantom, Polygon and Solana account for roughly $2.5 million worth of fees combined.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/9b5f732f-34a4-467a-949e-3028a79d9d57.png\"><figcaption style=\"text-align: center;\"><em>Layer-1 Transaction fees: a16z<\/em><\/figcaption><\/figure>\n<p>The report notes that Layer-2 scaling solutions are fighting to bring Ethereum\u2019s fees down and transaction speeds up, while also pointing out that long-awaited upgrades are coming to Ethereum to make the network more efficient and cost-effective. <\/p>\n<p>The &#8220;long awaited&#8221; upgrades can&#8217;t h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en soon enough however and\u00a0 a16z also highlighted in the report that over a 30-day average (as of May 12), active addresses and transactions on competing blockchains including Solana, BNB Chain and Polygon are already well ahead of Ethereum. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Ethereum analytics firm Nansen acquires DeFi tracker Ape Board<\/em><\/strong><\/p>\n<p>The data shows that Ethereum has 5.5 million active addresses that account for 1.1 million daily transactions, while Solana has a mammoth 15.4 million active addresses and 15.3 million daily transactions. BNB Chain ranks in third with 9.4 million and 5 million, while Polygon totaled around 2.6 million and 3.4 million. The analysts concluded it won&#8217;t be a winner-takes-all situation. <\/p>\n<blockquote><p>\u201cBlockchains are the hit product of a new computing wave, just as PCs and broadband were in the \u201890s and 2000s, and as mobile phones were in the last decade. There\u2019s a lot of room for innovation, and we believe there will be multiple winners.\u201d<\/p><\/blockquote>\n<p>Other key takeaways from the report included the DeFi sector\u2019s total value locked of roughly $113 billion would make it 31st largest bank in the U.S., estimations that Web3 adoption could hit 1 billion users by 2031 and that NFTs have generated $3.9 billion worth of revenue for creators so far.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-s-popularity-a-double-edged-sword-a16z-s-state-of-crypto-report\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Ethereum\u2019s popularity &#8216;a double-edged sword\u2019 \u2014 a16z&#8217;s State of Crypto Report &#8220; Crypto venture fund giant Andreessen Horowitz (a16z) has highlighted that development and demand on Ethereum is \u201cunmatched\u201d despite the network\u2019s high transaction fees. The firm does warn, however, that its \u201cpopularity is also a double-edged sword\u201d given Ethereum prioritizes decentralization over scaling,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":448666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOGUyZDMxZGItMGQ3Yy00NzE0LWIwYTgtYTgyODdiNmFhMjUwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74891,75326,95119,75566,92498,74880,117,72927],"class_list":["post-448665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-ethereum","tag-ethereum-2-0","tag-layer2","tag-report","tag-solana","tag-transactions","tag-business","tag-fees"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/448665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=448665"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/448665\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/448666"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=448665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=448665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=448665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}