1. Blockchain has more active users and more ways to participate
We are seeing more monthly active addresses than ever before. Last month we saw 15 million sending addresses, more than double the number two years ago when prices were still higher. Possible explanation: There are more and more ways to interact with blockchain and Web3 applications. From DeFi to Web3 games (more than 700 were launched last year), a variety of new applications create addresses for users to interact with without the need to download or connect a wallet.
2. DeFi and NFT activity appears to be on the rise again
For the past two consecutive months, Uniswap’s trading volume has been higher than that of Coinbase. Users and creators benefit from web3's structurally lower "charge rates" because users truly own their digital goods and can bring those goods to any platform they like. In the past two years, the NFT market has paid nearly $20 billion in royalties to creators, and as of 2022, web2 creators have received $10 billion.
3. The number of active developers in the crypto industry remains stable
Today, there are nearly 30,000 monthly active developers in the crypto industry, and the number of unique addresses with smart contracts deployed was close to 50,000 last month, a 40% increase this year alone. Cryptocurrency, as an open source, decentralized computing platform, has a multiplier effect when its components are reused, recycled, and adapted by others.
4. Blockchain is expanding in new ways, and new technologies that were once almost impossible are becoming a reality.
Layer 2 blockchain networks (L2) aim to expand the underlying layer 1 blockchain by providing more block space, increased transaction throughput, and lower fees. Over the past year, we have seen "zero Rapid progress in the field of “knowledge” systems that enable privacy-preserving applications and verifiable computation. This work has moved from theory to practice over the past few years, and the acceleration of progress is very promising.
5 The United States is losing its leadership in web3
As an emerging technology, cryptocurrencies require thoughtful policy and regulatory guardrails to grow safely and meet their economic potential for the U.S. economy. However, regulatory ambiguity hinders the development of web3. As a result, America's advantage may be slipping. The ratio of U.S.-based cryptocurrency developers to those in the rest of the world fell by 26% between 2018 and 2022.