IN THE SPOTLIGHT
Top insights from a16z’s 2024 State of Crypto Report

The crypto industry moves at breakneck speed, with trends and behaviors constantly shifting as the infrastructure keeps getting stronger and more efficient. a16z is keeping a close watch, giving us real insights into what’s happening and where we should focus our attention in the crypto space

Here are five key takeaways in a quick tl;dr format:

#1 Stablecoins have found their fit

Stablecoins are crypto’s top use case so far, staying steady even in a volatile market.

For comparison, sending money internationally costs about $44 on average, while blockchain gas fees are around $1 today. This big cost difference shows why stablecoins have been widely adopted, thanks to improvements in blockchain technology.

#2 Re-engaging onchain users is a huge, untapped opportunity

Just last month, 220 million addresses interacted with a blockchain, setting a new record. In June, monthly mobile crypto wallet users also hit an all-time high of 29 million. According to a16z, only 5-10% of these users are active, pushing companies and crypto brands to find new, creative ways to engage both new users and re-engage those who have gone inactive.

These record numbers are largely driven by Solana’s rapid growth, especially among developers.

#3 Crypto catches the attention of policymakers

Globally, the UK and Europe are leading the way in providing regulatory clarity. In the U.S., bipartisan crypto legislation is expected to pass after the elections.

#4 Crypto can help solve AI's centralization problem

Crypto’s core values—authenticity, democratization, transparency, and ownership—aim to tackle AI's issues like rising computing costs, lack of trust, and centralization. Projects like Gensyn, Story, and Staring Labs are already working on these challenges.

a16z also notes a significant overlap between AI and crypto users, with many crypto builders incorporating AI into their projects, especially in blockchain infrastructure.

#5 Infrastructure is getting more efficient, DeFi stays strong, and onchain apps are evolving

Thanks to Ethereum L2 networks and ZK-proofs, blockchains today handle over 50 times more transactions per second than they could 4 years ago. This boost in capacity has enabled new use cases, like low-cost NFT minting on platforms like Zora, the rise of social networks like Farcaster, and the growth of crypto-based prediction markets and onchain games.

DeFi remains the most popular crypto category, with 345,000 daily active addresses, mostly involved in staking and lending, and it's attracting more builders than blockchain infrastructure projects.

This year, a16z introduced the Builder Energy dashboard, a tool that highlights where "builder energy" is focused in web3. The mood is optimistic, celebrating bullish wins as we look ahead to exciting times!

For more details, check out the full report here.

IN THE SPOTLIGHT
Largest acquisition in crypto sealed

Stripe has acquired Bridge, a stablecoin platform, for $1.1 billion as part of their shared vision for improving global financial systems.

Founded in 2022 by former Coinbase executive Zach Abrams and Sean Yu, Bridge focuses on payments using stablecoins, making cross-border transactions smoother and more efficient.

This acquisition, Stripe’s largest to date, has been well-received by the crypto community and signals major progress toward a more connected financial future.

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IN THE SPOTLIGHT
Microsoft launches a whole bunch of AI agents

Starting next month, Microsoft users will be able to create autonomous agents using Copilot Studio in public preview, along with ten new agents in Dynamics 365 to assist sales, finance, service, and supply chain teams.

These autonomous agents will help businesses harness AI to streamline processes and enhance efficiency. Some of the new agents include:

• Sales Qualification Agent: Focuses on high-priority leads to boost sales efforts.

• Supplier Communications Agent: Tracks supplier performance and minimizes disruptions.

• Customer Intent and Knowledge Management Agents: Resolve issues and share best practices to improve customer service.

In their announcement, Microsoft noted that 60% of Fortune 500 companies are using Microsoft 365 Copilot, leading to significant cost reductions and productivity gains while maintaining a strong focus on data security and governance.

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SUBSTRATES
What else is on the radar?

WEB3

• Avalanche announces the upcoming arrival of a Visa debit card.

• Kraken is launching Ink Blockchain in early 2025, a layer-2 solution on Ethereum powered by Optimism that will further simplify DeFi interactions.

• Uniswap debuts permissionless bridging in its interface, allowing users to transfer assets across nine different blockchain networks.

• Mantra launched its Layer-1 blockchain focused on real-world assets.

• Gitcoin announces Gitcoin Grants 22, live until November 6, with over $1.4 million in total matching.

• The government of Buenos Aires rolls out a decentralized ID system using ZK-proofs for its 3.6 million residents.

• Sky suggests rebranding back to Maker.

AI

• Anthropic upgrades Sonnet 3.5 with a new beta feature called 'computer use,' which allows the model to take control of the user's mouse cursor and perform basic tasks on their computer.

• Meta debuts Spirit LM, its first open-source multimodal AI model that seamlessly integrates text and speech.

• IBM launches Granite 3.0, a powerful series of models specifically designed for enterprise needs.

• Claude ships a new analysis tool that enables it to write and run code and create interactive data visualizations using Artifacts.

• StabilityAI releases an open-source version of Stable Diffusion 3.5.

• Canva ships new AI features, including Dream Lab, a tool for text-to-dynamic images.

• xAI launches its API with access to the 'Grok-Beta' model.

• Asana unveils AI Studio, a no-code tool for designing AI agents.

FROM THE REPOSITORY
Check this out!

• An extensive report on the State of AI 2024, offering in-depth overviews of research, industry, policy, safety, and bold predictions.

• Can you feel the AGI? YCombinator’s podcast feat. Amjad Masad, CEO of Replit.

• How do NFTs create social value?

Use now or save for later:

• Generate images in real-time with Blinkshot.

• Use ChainClarity to receive AI-powered explanations of crypto whitepapers.

• Whats.now is personal AI assistant for VCs.

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