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Cryptocurrency usage has hit new highs and shows no signs of slowing down.
This is according to a recent report from venture capital firm Andreessen Horowitz that found record cryptocurrency usage as business and technology infrastructure matures.
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The annual State of Crypto report released on Wednesday shows that the number of crypto holders around the world this year is a record high of 617 million, with active users estimated at 30 million and 60 million. Estimated. It was also revealed that blockchain activity has increased significantly, with 220 million unique crypto addresses engaging with the technology at least once in September.
This marks a 3x increase compared to late 2023 numbers and highlights the increasing adoption and integration of cryptocurrencies across a variety of platforms and services.
This growth follows a prolonged “crypto winter,” which was further exacerbated by the collapse of FTX, the exchange led by now-ousted CEO Sam Bankman-Fried.
However, the situation has changed dramatically. Bitcoin, which was trading at $28,000 a year ago, has soared to $68,000 today, an impressive growth of over 142%. This recovery signals renewed investor confidence and renewed interest in the crypto market.
Stablecoins will drive mass adoption of cryptocurrencies
A key factor driving this growth, according to the report, has been the widespread adoption of stablecoins, which are digital tokens pegged to the value of traditional currencies such as the US dollar.
Stablecoins offer a level of stability not typically found in other cryptocurrencies, making them more attractive as everyday transactions and stores of value. This credibility has led to increased usage in a variety of areas, from remittances and e-commerce to decentralized finance (DeFi) platforms, further boosting overall activity in the cryptocurrency ecosystem.
The report shows that stablecoins are becoming more popular due to the reduced cost of executing cryptocurrency transactions, with fees for USDC, Ethereum’s popular USD-pegged stablecoin, dropping by more than 90% from $12 to $1. It became clear. Base (COIN) is a popular network on the cryptocurrency exchange platform Coinbase for sending and receiving cryptocurrencies, with an average cost of sending USDC of less than 1 cent.
AI is gaining popularity among crypto users
This report reveals significant overlap between ChatGPT visitors and users of top cryptocurrency websites, indicating a strong connection between cryptocurrencies and artificial intelligence (AI) users. It was done. Roughly one-third of crypto projects say they use AI, the highest adoption rate of any technology tracked by Andreessen Horowitz.
But AI could lead to an increased concentration of power on the internet, as only the largest technology companies may have the resources to leverage cutting-edge AI models. This study warns.
On a more optimistic note, the report suggests that crypto projects that are already dealing with centralization issues could leverage blockchain technology to reduce AI-related centralization risks. . This approach could foster a more equitable distribution of technical power in the AI field.
According to the report, “the challenges associated with AI centralization are almost diametrically opposed to the decentralization opportunities presented by blockchain networks.”
