The decentralized finance (DeFi) ecosystem continues to grow despite various challenges in the cryptocurrency market. According to a new report by venture capital firm Andreessen Horowitz (a16z), the use of cryptocurrencies has reached record levels.

The #CryptoIndustry Sees Significant Growth

In its "State of Crypto" report released on October 16, a16z noted a sharp increase in activity within the crypto industry over the past year. The growth trajectory of this sector is compared to the early adoption of the internet.

For example, in September 2024, over 220 million addresses interacted with blockchain protocols, more than three times the number recorded at the end of 2023. Around 100 million of these active addresses were on the Solana (SOL) blockchain, which has seen a massive surge in activity.

Other networks that have experienced similar growth include Near Protocol (NEAR), Coinbase's Base layer-2 network, Tron (TRX), and Bitcoin (BTC).

Stablecoins and Cryptocurrency Regulation

The report also highlights key metrics and challenges facing the crypto space since the first a16z State of Crypto report in 2023. One notable finding is that cryptocurrencies have become a significant political issue in U.S. elections, although the United States still lags behind the European Union and the UK in terms of public engagement with crypto regulation.

The market has also seen considerable developments around stablecoins, including their regulation and usage. Stablecoins have grown to become some of the 20 largest holders of U.S. Treasury securities. Companies like Tether (USDT) and Circle (USDC) are leading this growth, with significant expansion in the third quarter of 2024.

Additionally, the industry's growth has been supported by infrastructure improvements and the increasing intersection of blockchain technology and artificial intelligence.

DeFi Continues to Thrive

DeFi remains one of the most active areas of cryptocurrency. Since its emergence in the summer of 2020, decentralized exchanges (DEXs) now account for 10% of spot trading activity, which used to take place only on centralized exchanges.

#DEFİ protocols currently manage over $169 billion in total value locked (TVL). Leading platforms include Lido, Aave, Uniswap, EigenLayer, WBTC, and ether.fi. These decentralized platforms continue to attract users while traditional financial institutions, such as U.S. banks, face ongoing challenges.

Most Active Blockchains

According to a16z, the top blockchains in terms of developer activity and interest include Ethereum (ETH), Solana, and Bitcoin. Ethereum still attracts the most developer activity with 20.8% of builders, while Solana has seen significant growth, increasing from 5.1% in 2023 to 11.2% in 2024.

Coinbase's Base has also experienced a surge in developer activity, rising from 7.8% to 10.7% year-over-year. Bitcoin, which has seen increased interest related to DeFi, has grown its developer engagement from 2.6% to 4.2%.

#cryptoregulation , #CryptoNews🚀🔥 #Cryptocurrencies

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“