The crypto landscape is changing fast.

Recently, @a16zcrypto released a 60-page "2023 State of Crypto" report.

Here are 10 key takeaways & trends to watch for.

🧵 ↓

1/ Why Web3 Matters? ✨

→ Web3 is more than a financial movement.
It's an evolution of the Internet.

→ Blockchains are more than Ledgers.
They are computers.

→ Crypto isn't just a new financial system.
It's a new computing platform.

2/ Web3 is the next big thing in the Creator Economy. ✨

Users have more power and earn a more significant share of revenue on Web3.

3/ Positive Feedback loop drives Crypto Market Cycles. ✨

Token price increases
↓
Simulate Interest
↓
New Ideas flourish
↓
Ideas become projects & new startups emerge.
↓
Token price increases
↓
...

4/ Blockchains are scaling through multiple promising paths. ✨

New projects & protocols are emerging to solve the Scalability problem.

In 2021-22, L2 scaling solutions accounted for 1.5% of total fees paid on Ethereum.

In 2022-23: 7%

5/ PoS Ethereum consumes 0.001% of the energy that YouTube consumes annually. ✨

Energy Consumption Comparison (annually):
→ PoW Ethereum: 78 TWh
→ PoS Ethereum: 0.0026 TWh

6/ NFT creators have earned ~$2 Bn.✨

Royalty revenue for NFTs skyrocketed in '22, but the chart has gone down with current market scenarios.

Considering that Facebook (having 3Bn users) earmarked only $1Bn for creators over multiple years,

these numbers are not insignificant.

7/ Major Web2 brands are exploring Web3 through NFTs. ✨

8/ Web3 games play a crucial role in onboarding new users to Crypto✨

Web3 games generated 23x more on-chain txn than DeFi.

It's clear that Web3 gaming is not just a narrative but also a real product.

Just imagine when the big players like Blizzard & Riot get into Web3 gaming.

9/ The U.S. is losing its lead in Web3. ✨

Between 2018 – 2022, the proportion of crypto developers based in the U.S. has shrunk by 26%.

While it could mean the rest of the world is catching up in terms of developer base,

or is bad governance really costing the U.S.?

10/ Participation in DAO Governance is growing. ✨

With 13 million total votes & 1.9 Mn unique voters,

the voting activity on proposals has been growing even in the bear market.

That's it for now, fren!

I hope you've found this thread helpful.

Follow me @cryptoshuriken for more.

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