7 Key Takeaways: a16z’s 2024 State of Crypto Report

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The world of cryptocurrency has undergone a seismic shift since a16z Crypto first published its annual State of Crypto report just two years ago. Back then, crypto was a fringe topic in policy circles, Ethereum had yet to complete its energy-efficient shift to Proof-of-Stake, and Layer 2 (L2) networks were barely functional—let alone cost-effective. Today, everything has changed.

In the 2024 State of Crypto Report, a16z dives deep into how blockchain technology has matured, how user adoption has surged, and how crypto is now at the center of political, financial, and technological conversations worldwide. From regulatory milestones to infrastructure breakthroughs and emerging consumer trends, this report captures the momentum reshaping the digital economy.

This year, a16z also launched a new resource: the Builder Energy Dashboard—a first-of-its-kind proprietary tool aggregating thousands of anonymized data points from their investment research, CSX accelerator program, and industry-wide tracking. For the first time, anyone can explore where crypto builders are focusing their energy: which blockchains they’re building on, what kinds of applications they’re creating, and where innovation is heating up.

Let’s break down the 7 major insights from the report.

Crypto Activity Reaches All-Time Highs

Monthly active blockchain addresses hit a record 220 million in September 2024, more than tripling since late 2023. While active address metrics can be manipulated, the trend reflects real growth in user engagement.

The surge is largely driven by Solana, which now hosts around 100 million active addresses—nearly half the total. Other major contributors include NEAR (31M), Base (22M), Tron (14M), and Bitcoin (11M). Among EVM-compatible chains, BNB Chain (10M) ranks second after Base, followed by Ethereum (6M).

These shifts are mirrored in developer interest. According to the Builder Energy Dashboard, founder interest in Solana jumped from 5.1% to 11.2% year-over-year—the largest increase of any chain. Base followed closely with growth from 7.8% to 10.7%, while Bitcoin also saw rising builder attention, rising from 2.6% to 4.2%.

Despite these gains, Ethereum remains the top choice for developers, capturing 20.8% of builder interest. It’s followed by Solana and Base, then Polygon (7.9%), Optimism (6.7%), and Arbitrum (6.2%).

On the consumer side, monthly mobile crypto wallet users peaked at 29 million in June 2024. While the U.S. leads in absolute numbers (12% share), its global footprint is shrinking as adoption accelerates overseas.

👉 Discover which blockchain is attracting the most developer momentum in 2024.

Key international markets include:

Estimates suggest there are between 30 million and 60 million truly active crypto users globally, representing just 5–10% of the estimated 617 million crypto holders. This gap reveals a massive opportunity: reactivating dormant holders through better user experiences and lower friction.

Crypto Emerges as a U.S. Election-Year Issue

For the first time, cryptocurrency has become a mainstream political topic in the 2024 U.S. election cycle. Google Trends data shows rising search interest in key swing states: Pennsylvania (+4th), Wisconsin (+5th), and Michigan (+8th) since 2020.

The approval of Bitcoin and Ethereum exchange-traded products (ETPs)—registered under SEC Form S-1—marks a regulatory turning point. These ETPs now hold $65 billion in on-chain assets, expanding access for traditional investors.

Congress is responding. The House passed the bipartisan FIT21 Act with strong support (208 Republicans, 71 Democrats), aiming to provide clear regulatory frameworks for crypto businesses. The bill now awaits Senate action.

At the state level, Wyoming’s DUNA Act grants legal recognition to decentralized autonomous organizations (DAOs), setting a precedent for decentralized governance.

Globally, the EU’s MiCA regulation is set to fully launch by year-end—the world’s first comprehensive crypto regulatory framework. The UK and EU are also leading in public consultation efforts, far outpacing U.S. engagement.

Stablecoins are central to policy debates. With over 99% pegged to the U.S. dollar, they offer a strategic tool to extend dollar dominance globally—even as America lags in central bank digital currency (CBDC) development.

Remarkably, stablecoins have already become one of the top 20 holders of U.S. debt, surpassing nations like Germany. This underscores their growing role not just in payments, but in global finance.

Stablecoins Achieve Product-Market Fit

Stablecoins are no longer experimental—they’re crypto’s first true killer app.

As Rep. Ritchie Torres noted in The New York Daily News, “Dollar-pegged stablecoins may be humanity’s greatest financial empowerment experiment.”

Why? They enable fast, low-cost global transfers. In Q2 2024 alone:

Compare that to average international wire fees of $44, and the value proposition becomes clear.

Transaction costs have plummeted thanks to L2 scaling:

Even during crypto market downturns, stablecoin usage continues to grow—proving it's not just for speculation.

By daily active address share, stablecoins account for 32% of all crypto activity—second only to DeFi (34%).

Infrastructure Gains Drive Scalability & Lower Costs

The rise of stablecoins and new applications is powered by infrastructure improvements.

Blockchain throughput is now 50x higher than four years ago, thanks to L2 networks and high-performance blockchains like Solana.

Ethereum’s Dencun upgrade (EIP-4844) in March 2024 slashed L2 transaction fees by introducing proto-danksharding. Despite rising usage, costs have dropped dramatically—making Ethereum more scalable and efficient.

Zero-knowledge (ZK) proofs are also advancing. Though verification costs have declined, value secured via ZK rollups has increased—indicating growing efficiency and adoption.

👉 See how blockchain scalability is unlocking new financial applications today.

ZK technology enables trustless computation and privacy-preserving verification, opening doors for verifiable off-chain processing. While zkVMs still lag behind traditional computing performance, progress is accelerating.

Unsurprisingly, blockchain infrastructure remains one of the most popular categories for builders—with L2s ranking among the top five hottest subcategories.

DeFi Remains Strong and Expanding

Decentralized Finance (DeFi) leads in both usage and builder interest, capturing 34% of daily active addresses.

Since 2020, decentralized exchanges (DEXs) now handle 10% of all spot crypto trading volume—a space once dominated entirely by centralized platforms.

Total value locked (TVL) across DeFi protocols exceeds $169 billion, with major activity in staking and lending.

Ethereum’s transition to Proof-of-Stake has been transformative:

DeFi offers a compelling alternative to an increasingly centralized U.S. financial system—where bank consolidation has reduced institutions by two-thirds since 1990.

Crypto Can Solve AI’s Biggest Challenges

AI and crypto are converging—and fast.

One-third (34%) of crypto projects now integrate AI—up from 27% last year—according to the Builder Energy Dashboard. Infrastructure teams are leading adoption.

Why does this matter? AI faces critical challenges: centralization, lack of creator compensation, data provenance, and opaque training processes.

Crypto offers solutions:

With AI training costs growing 4x annually, only tech giants may soon afford cutting-edge models. Crypto’s decentralized infrastructure could level the playing field.

Scalable Infrastructure Unlocks New Onchain Applications

Lower costs and higher throughput are enabling innovative consumer apps beyond finance.

NFTs: High-cost speculation has given way to social expression. Platforms like Zora and Rodeo let users mint low-cost NFTs as digital collectibles—something previously unfeasible.

Social Networks: Though small in on-chain activity (<1%), social apps attract strong builder interest—10.3% of crypto projects focus on social use cases. Farcaster-related projects rank among the top five hottest builder subcategories.

Gaming: Titles like Pirates of the Open Sea by Proof Of Play push Ethereum rollups to their limits—consuming more gas per second than any other rollup.

Prediction Markets: Despite legal hurdles in the U.S., platforms like Kalshi won a court ruling allowing election futures trading—signaling growing legitimacy.

These trends reveal a shift: from speculative assets to real-world utility driven by better infrastructure.

Frequently Asked Questions

Q: What is the most active blockchain in 2024?
A: Solana leads in monthly active addresses with around 100 million, followed by NEAR and Base.

Q: Are stablecoins safe for everyday transactions?
A: Yes—especially dollar-pegged ones like USDC and USDT. With $8.5 trillion in quarterly volume and fees under a cent on some L2s, they’re increasingly reliable for global payments.

Q: How is crypto influencing U.S. politics?
A: It’s now a key issue in swing states like Pennsylvania and Wisconsin. Regulatory progress like the FIT21 Act and ETP approvals show bipartisan momentum.

Q: Can crypto help decentralize AI?
A: Absolutely. Projects are using blockchain to decentralize compute power, verify data sources, and ensure fair compensation for creators—countering Big Tech’s dominance.

Q: Why are Layer 2 networks so important?
A: They drastically reduce transaction costs and increase speed while maintaining Ethereum’s security—enabling everything from microtransactions to social apps.

Q: Is DeFi still relevant?
A: More than ever. With $169B+ locked and growing use in lending, trading, and staking, DeFi remains central to crypto innovation—and a viable alternative to traditional finance.

The 2024 crypto landscape is defined by maturation: stronger infrastructure, broader adoption, real-world utility, and growing political relevance. Whether it's stablecoins transforming payments or blockchain enabling decentralized AI, the foundation is being laid for a new digital economy.

👉 Explore how you can get started with next-generation crypto applications today.