Andreessen Horowitz’s report on upcoming crypto trends
Andreessen Horowitz’s report on upcoming crypto trends
Crypto

Andreessen Horowitz’s report on upcoming crypto trends

By Vincenzo Cacioppoli - 1 Jun 2022

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The new report by venture capital fund Andreessen Horowitz shows all the upcoming trends in the crypto world.

Upcoming crypto trends according to the a16z venture capital report

The new report by the venture capital fund Andreessen Horowitz, also known as a16z, was published on 17 May. The report outlined the current situation in the cryptocurrency world and what the next trends in the sector might be.

According to the experts who compiled the report, this would be the fourth cycle for cryptocurrencies, which are characterized by periods of euphoria and periods of negative market conditions, referred to as “crypto winters”.

The report states that:

“These cycles appear chaotic but have an underlying order, roughly characterized as: 

  • the price of Bitcoin and other crypto assets goes up, 
  • leading to new interest and social media activity, 
  • leading to more people getting involved, contributing new ideas and code, 
  • leading to projects and startups getting created, 
  • leading to product launches that inspire more people, eventually culminating in the next cycle”.

The first cycle is considered to be from 2009 to 2012, the second from 2012 to 2016, the third from 2017 to 2019 and the current one from 2020 to the present. This period, which was punctuated by a period of great euphoria culminating in last November’s record highs, is now going through a period of widespread declines. 

Web3: the new frontier of the crypto world

web3 internet

According to the report, Web3 will be the driver of the recovery and is to be regarded as the biggest innovation in recent years.

According to venture capital research, Web 3.0 was by far the most profitable method for developers than any other similar tool on the web.

According to Andreessen Horowitz’s analysis, Web3 paid $174,000 per creator. Meta (Facebook) paid $0.10 per user, Spotify $636 per artist and YouTube $2.47 per channel.

Considering the current potential and numbers, Web3 is only at the beginning of its expansion. The report points out that the number of users is comparable to that of the Internet in 1995. As a projection, analysts suggest that Web 3.0 may have a development quite similar to the impact that the Internet has had. 

Another absolutely interesting aspect is the exponential growth that DeFi has had, which in just two years has come to capitalize over 100 billion dollars from zero. Considering that around 1.7 billion people in the world do not have a bank account, the number of users of decentralized finance is set to grow further in the coming months.

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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