a16z 2023 State of Crypto – a shallow dive + podcast episode

Went through the a16z 2023 State of Crypto and pulled out some interesting slides + my own notes. I also recorded a podcast episode about it (as part of the 5 minute daily update):

Here we gooo:

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Web1 was decentralized (email protocol, web protocol) but limited functionality, and no value accrual

Web2 was centralized into Google, Facebook, etc, advanced functionality, but value accrued to big tech

Web3 is decentralized again, community governed, and value accrues to participants

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Web2 take rates are something like 30-100%
30% for services like Spotify and Apple App Store
100% for FB, Twitter

Web3 take rates are much lower – or even pay participants (like ETH’s PoS)
OpenSea is 2.5%, Uniswap is 0.30%

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With each cycle, the market gets larger
-higher price
-more usage
-more developers
-more projects

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ETH is scaling through rollups
In 2022, L2s paid less than 2% of all ETH fees
Now it’s closer to 7%

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The big brands are all here – from mass consumer brands like Starbucks and Adidas and Budweiser to luxury brands like Tiffany and LV and Porsche

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DAO governance is growing
From barely 50K monthly proposals in 2021 to more than 200K today
2M unique DAO voters

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More than 50K monthly crypto developers on Github

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Active addresses steadily growing
From less than 5M in 2018, to more than 15M today, across all blockchains

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What A16z expects in the coming years
-Zero knowledge tech will accelerate
-On chain games will grow in popularity
-Light clients will accelerate web3 and mobile
-in the US, bipartisan crypto regulation will pass

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