The landscape of cryptocurrency has undergone a dramatic transformation in just two years. When we published our first annual State of Crypto Report, blockchain technology was still on the fringes of public discourse. Bitcoin and Ethereum exchange-traded products (ETPs) hadn’t yet gained regulatory approval. Ethereum had not completed its historic shift to energy-efficient proof-of-stake. Layer-2 (L2) scaling solutions were nascent, with high transaction fees limiting widespread adoption.
Today, the narrative has shifted entirely. The 2024 State of Crypto Report reveals how crypto has evolved into a mainstream technological, financial, and political force. From explosive user growth and infrastructure breakthroughs to the convergence of crypto with artificial intelligence and social networks, this year’s findings highlight an industry at an inflection point.
To deepen insights into builder sentiment, we’ve also launched the a16z Crypto Builder Energy Dashboard—a new tool offering proprietary data on where innovation is accelerating. Aggregating thousands of anonymized data points from our investment research, CSX accelerator program, and industry tracking, the dashboard tracks developer interest across blockchains, applications, and geographies. It’s a real-time pulse check on the future of decentralized innovation.
Let’s dive into the key findings.
Crypto Activity Reaches All-Time Highs
Monthly active blockchain addresses have surged to an unprecedented 220 million in September—more than triple the count since late 2023. While active address metrics can be subject to manipulation, they remain a useful proxy for on-chain engagement.
The surge is largely driven by Solana, now home to approximately 100 million active addresses. Other major contributors include NEAR (31 million), Base (Coinbase’s L2 network, 22 million), Tron (14 million), and Bitcoin (11 million). Among EVM-compatible chains, BNB Chain ranks second after Base with 10 million active addresses, followed by Ethereum at 6 million.
👉 Discover which blockchain is attracting the fastest-growing developer interest in 2024.
This momentum is mirrored in builder sentiment. According to our Builder Energy Dashboard, Solana saw the largest increase in developer interest—jumping from 5.1% to 11.2% of founders indicating they’re building or planning to build on it. Base followed closely, rising from 7.8% to 10.7%, while Bitcoin interest doubled from 2.6% to 4.2%.
In absolute terms, Ethereum remains the top choice, capturing 20.8% of developer interest. It’s trailed by Solana, Base, Polygon (7.9%), Optimism (6.7%), Arbitrum (6.2%), and Avalanche (4.2%).
Mobile wallet adoption is also hitting new peaks. In June 2024, monthly active mobile crypto wallet users reached 29 million, a record high. While the U.S. leads in total users (12%), its share is declining as global adoption accelerates—especially in regions like Nigeria, India, and Argentina.
These countries are seeing rapid crypto integration due to mobile penetration, regulatory sandbox initiatives, and economic factors such as currency devaluation—driving demand for stablecoins as a store of value.
Estimating true active users remains challenging. Combining multiple methodologies, we estimate 30 to 60 million monthly active crypto users—only 5–10% of the world’s 617 million crypto owners (Crypto.com, June 2024). This gap underscores a massive opportunity: converting dormant holders into engaged participants through better infrastructure and compelling applications.
Crypto Emerges as a Key U.S. Election Issue
For the first time, cryptocurrency has entered the national political conversation in the U.S. As the 2024 election approaches, swing states are showing heightened interest in digital assets.
Google Trends data reveals that Pennsylvania and Wisconsin—two critical battlegrounds—ranked fourth and fifth in growth of crypto-related search interest since 2020. Michigan rose to eighth place, while Georgia remained stable. Arizona and Nevada saw modest declines.
Several factors are fueling this political shift. The approval of Bitcoin and Ethereum ETPs (often called ETFs) has expanded access for mainstream investors. These products now hold $65 billion in on-chain assets, signaling institutional confidence.
The SEC’s greenlighting of ETPs marks a regulatory milestone. With bipartisan support growing, momentum is building for comprehensive legislation like the FIT21 Act, passed by the House with backing from 208 Republicans and 71 Democrats. If enacted, it could provide long-needed clarity for crypto entrepreneurs.
At the state level, Wyoming’s DUNA Act grants legal recognition to decentralized autonomous organizations (DAOs), enabling them to operate without compromising decentralization—a landmark for on-chain governance.
Meanwhile, the EU leads in regulatory clarity with MiCA (Markets in Crypto-Assets) set to fully take effect by year-end. The UK is also actively engaging stakeholders, outpacing U.S. regulators in public consultation.
Stablecoins: The Killer App of Crypto
Stablecoins have firmly established themselves as crypto’s most impactful application—enabling fast, low-cost global payments. As Congressman Ritchie Torres noted in September: “Smartphones and blockchain tech have made dollar-pegged stablecoins possible—potentially the greatest financial empowerment experiment in human history.”
Infrastructure upgrades have slashed transaction costs. Sending USDC on Ethereum now costs an average of $1 in gas—down from $12 in 2021. On Base, it’s less than a penny.
Compare that to the average $44 cost of an international wire transfer.
In Q2 2024 alone, stablecoin transaction volume hit **$8.5 trillion across 1.1 billion transactions**—more than double Visa’s $3.9 trillion over the same period. Stablecoins now sit alongside Visa, PayPal, and Fedwire in payment discussions.
Despite crypto market volatility, stablecoin usage continues to rise independently—indicating use beyond speculation. They now account for 32% of daily crypto activity by active addresses, second only to DeFi (34%).
Infrastructure Breakthroughs Enable Scalability
The rise of L2 networks and high-throughput blockchains has increased transaction capacity by over 50x since 2020.
Ethereum’s Dencun upgrade (EIP-4844), implemented in March 2024, drastically reduced L2 fees through proto-danksharding. Even as L2 activity grows, costs continue to fall—making Ethereum both more popular and more efficient.
Zero-knowledge (ZK) proofs are another game-changer. While verification costs on Ethereum have dropped, value settled via ZK rollups has increased—proving that scalability and affordability can coexist.
Though zkVMs still lag behind traditional computing performance, they open doors to verifiable, low-cost blockchain computation—a foundation for future innovation.
DeFi Continues Its Ascent
Decentralized Finance (DeFi) remains the most used and builder-popular category in crypto, with over $169 billion locked across protocols.
Since Ethereum’s move to proof-of-stake, staked ETH has risen from 11% to 29%, enhancing network security. DeFi offers a compelling alternative to centralized finance—especially as U.S. banking consolidation leaves fewer institutions controlling more assets.
Crypto Meets AI: Solving Centralization Challenges
AI is now one of the top trends among crypto builders—34% report integrating AI into their projects, up from 27% last year.
Projects like Gensyn, Story, and Near are using crypto to decentralize AI compute, protect creator IP, and democratize access. With AI training costs rising exponentially, blockchain could prevent monopolization by big tech.
New On-Chain Applications Are Emerging
Lower fees have unlocked new use cases:
- NFTs: Shift from speculative trading to social minting on platforms like Zora.
- Social Networks: Now represent 10.3% of builder activity.
- Gaming: Titles like Pirate Nation push scalability limits.
- Prediction Markets: Gaining traction despite U.S. legal hurdles.
Frequently Asked Questions
Q: What are stablecoins and why are they important?
A: Stablecoins are cryptocurrencies pegged to stable assets like the U.S. dollar. They enable fast, low-cost global transactions and serve as a bridge between traditional finance and crypto.
Q: How has Ethereum improved scalability?
A: Through upgrades like Dencun and the rise of L2 networks, Ethereum now supports far more transactions at lower costs—critical for mass adoption.
Q: Are more developers building on crypto?
A: Yes—developer interest is growing rapidly, especially on Solana, Base, and Ethereum, driven by better tools and infrastructure.
Q: Can crypto influence U.S. elections?
A: Absolutely. With ETP approvals and bipartisan legislation like FIT21, crypto has become a policy priority in swing states.
Q: How does AI intersect with blockchain?
A: Blockchain can decentralize AI infrastructure—preventing monopolies, verifying data provenance, and fairly compensating creators.
Q: What’s driving mobile wallet growth?
A: Global demand for financial inclusion, remittances, and protection against inflation—especially in emerging markets.
👉 See how blockchain innovation is reshaping finance, AI, and digital ownership today.
The past year has marked undeniable progress across policy, technology, and adoption. Whether we’re entering the fifth wave of the crypto price-innovation cycle remains to be seen—but one thing is clear: with infrastructure maturing and builders pushing boundaries, crypto is no longer a fringe experiment. It’s a foundational layer for the next digital era.
Core Keywords: cryptocurrency, stablecoins, blockchain infrastructure, DeFi, AI and crypto, L2 networks, crypto adoption, builder sentiment