(Thai Language) State of Crypto Report 2024: New data on swing states, stablecoins, AI, builder energy, and more by#A16Z& Thai summary by #EarthDeFIRE

Summary of 7 points for lazy people:

1. Global crypto usage hits new high

2. Crypto is another way to gain votes and become a political factor in America.

3. Stablecoin is an option that many people want to use.

4. Development of Blockchain Infrastructure helps transactions to be processed better and fees to be cheaper.

5. DeFi Even though it seems to be fading… there are still many users behind it.

6. Crypto is a key factor that works well with AI.

7. Blockchain infrastructure has developed to scale exponentially, allowing for a much larger number of dapps.

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1. Crypto activity and usage hit all-time highs

1. Global crypto usage hits new high

Crypto users reach 220,000,000 accounts, this growth is like the growth of the internet in 1998.

In the division of these 220,000,000 user accounts, they are divided into two parties.

The left side has approximately 52,000,000 EVM chain accounts, and the right side has 174,000,000 Non-EVM chain accounts.

Incredible as:

#1 Solana = 100M (Non-EVM chain)
#2 NEAR = 31M (Non-EVM chain)

#3 Base = 22M (EVM chain)

#4 Tron = 14M (Non-EVM chain)

#5 Bitcoin = 11M (Non-EVM chain)

On the developer/builder side, where do they want to build?

They are clustered as follows: Ethereum (20.8%), Solana (11.2%), Base (10.7%), Polygon (7.9%), Optimism (6.7%), Arbitrum (6.2%), Avalanche (4.2%), Bitcoin (4.2%).

In the dream of growth, we find that Solana (grew 5.1% > 11.2%) and Base (grew 7.8% > 10.7%) and Bitcoin (grew 2.6% > 4.2%)… are the Top 3 of all.

On the user side, mobile crypto wallets have reached 29,000,000 accounts.

Growing from the beginning of 2024 by approximately 20,000,000 accounts, meaning a growth of more than 50% in a six-month period.

Countries with high growth include Nigeria, India, and Argentina.

For reasons such as general daily payment usage / growth in mobile usage / including people may want to hold crypto in the form of stablecoins to hedge against currency fluctuations in their own country.

Research indicates that out of the 617,000,000 total active accounts worldwide, only 5% to 10% are monthly active users, around 30,000,000 to 60,000,000 accounts.

This means that there is still room for growth. As many as 90% of former users have returned to monthly usage. In other words, 90% of investors have been hurt badly since the COVID-19 pandemic and have not been able to enter the market again.

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2. Crypto has become a key political issue ahead of the U.S. election

2. Crypto is another way to gain votes and become a political factor in America.

On the American political and campaign side, I won't go into detail.

But if we were to briefly explain, Trump is one of the crypto enthusiasts. Trump has helped push financial products like ETPs (exchange-traded products) (or ETFs) to grow to hold crypto (Bitcoin & Ethereum) worth $65 billion.

In terms of legislation, there are more and more laws being passed, but to summarize, they are to control crypto more strictly, preventing it from being used for terrorism or money laundering.

An important factor to be aware of in terms of US politics is stablecoins.

While around 58% of the world's money is in dollars, and roughly 48-64%, whether it's debt or global remittances, the unit is still dollars.

But on the Stablecoin Crypto Market side… 99% is almost all in the form of dollars. Therefore, it is something that America must push and cannot abandon in order to control this market so that people want to hold dollars.

US debt instruments are ranked in the top 20 countries with the largest holdings. Stablecoins have already made it to the top 20.

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3. Stablecoins have found product-market fit

3. Stablecoin is an option that many people want to use.

On the global money transfer development side, we used to transfer a fee of $44, now we can transfer at a fee of less than $0.01.

In the Q2/2024 stablecoin crypto transfer volume, the transfer volume beats Paypal by 20 times and Visa by two times.

The number of times (# of tx) the amount of the transaction may be less, about six to eight times. It can be seen that in transferring a large amount of money, stablecoins may be the main choice.

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4. Infrastructure improvements have increased capacity and drastically reduced transactions costs

4. Development of Blockchain Infrastructure helps transactions to be processed better and fees to be cheaper.

The growth of blockchain usage, in the past four years, we have grown 50 times.

This could be due to Ethereum’s “Dencun” upgrade, which reduces Layer-2 fees.

Zero Knowledge Proof, a form of creating privacy or privacy in financial transactions on the blockchain world, has also grown exponentially.

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5. DeFi remains popular — and it’s growing

5. DeFi, although it seems to be fading… there are still many users behind it.

DeFi usage growth is much higher than before.

DeFi > Blockchain Infrastructure > DePIN

Real World Asset > Payment > L2 Blockchain > Exchange > Social Networks

The trading volume on DEX from 2021 has approximately 5% +- users and currently in 2024 has grown to an average of 10% +-.

Blue chip DeFi controls billions of dollars of crypto finance with products like Lido (Liquid Staking) > Aave (Lending) > WBTC (Bridge) > Uniswap (DEX) > Eigenlayer (Restaking) > Ether fi (Liquid Restaking) > MakerDAO (Collateral Debt & RWA) etc.

What makes us crypto nerds interested in DeFi is that we want to change the traditional financial system into a new form like DeFi. As you can see,

The Federal Deposit Insurance Corporation (FDIC) or the US deposit insurance agency, from the early 1990s, there were 15,000 financial institutions insured, but now in 2024, it has been reduced to 5,000 institutions.

The problem is that money actually increases, but it is concentrated in large financial institutions, leading to high capitalism.

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6. Crypto could solve some of AI’s most pressing challenges

6. Crypto is a key factor that works well with AI.

There's no denying that 2024 is the year of AI, one of the hottest trends in tech.

If we delve deeper, on this side, users who visit the chatGPT website appear to be actively using crypto websites (Etherscan / Binance / Opensea / CoinMarketCap / Coinbase), confirming that they are quite a similar group of users.

On the developer side, in 2023, AI developers were around 27%. Now in 2024, it has grown to 34%. But what surprised me the most is why are there so many people creating NFTs?

I am not an influencer on the AI ​​side, but if I analyze this data, I can say that AI helps process a lot of data around the world. But sometimes it also makes the data more junk.

Blockchain could help make AI data storage more complete

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7. More scalable infrastructure has unlocked new onchain applications

7. Blockchain infrastructure has developed to scale exponentially, allowing for a much larger number of dapps.

DePIN: More moves to play Wireless / Mapping / Weather / Vehicle Data / Energy / Food Delivery

NFT: I don't touch on NFT much, but NFT usage on Base and Zora will skyrocket in 2024, probably because the fees are very low.

Web3 Social Network: Farcaster is considered one of the Core Social Networks because it has a diverse and flexible ecosystem.

If you are interested in using it, here it is.

Warpcast by Farcaster: https://warpcast.com/~/invite-page/314444?id=2b078b09

Prediction Market: Speculation or prediction market (similar to football betting) has grown a lot because, for example, the prediction format for the US presidential election is another thing that people are interested in.

Finally, which growth site are we entering? Is the crypto market surging?

It must be said that in the post-COVID years of 2021–2022, a huge amount of money has entered the crypto market, making it seem as if there will still be some growth in 2024.

Retail has not yet reached that number of people, but American financial institutions have smoked countless rolls of weed. Let's just say that if you are not prepared, you will not be able to capitalize on the crypto market in 2025.

Thanks to#A16Zfor the information posted on 16/10/2024, I quickly summarized it for Web3 users to read!

#EarthDeFIRE Report 17/10/2024

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State of Crypto Report 2024–16 Oct 2024

X: https://x.com/a16zcrypto/status/1846586491171975681

Read the full version: https://a16zcrypto.com/posts/article/state-of-crypto-report-2024/

Read Google slide (58 slides): https://docs.google.com/presentation/d/e/2PACX-1vScVE91gI4vV6JMG8PC1WY5g8ROFmi8DvmdLEWzlKTU0qzcIZdsydz01z1zrDOWqUQhcQAxGoDgbdNd/embed?slide=id.g2ff35ef3885_6_0

(It seems like he set it to not allow downloading and storing. You can only view it. And this link cannot be viewed on mobile phones. You can only view it on computers. If you want to view the slide, you have to go to their website.)

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