The Crypto market is going through major turbulence and many questions are raised about its maturity to be a mainstream product. In contrast, a report published by Venture capital firm Andreesen Horowitz (a16z), named “The State of Crypto” brings some promising news. The study gives insight and a new perspective into the crypto market development cycle, as well as its growth and development in near future.
The current downfall of crypto, including the collapse of the 9th largest cryptocurrency LUNA, is somewhat similar to the dot-com crash in the 2000s as per this study. It also shares detailed analysis of how crypto is having a real-world impact. Expect the use of crypto as payment to creators, there are several other benefits of crypto that can be seen in the real world.
The report reveals that despite the recent downturn, the demand for decentralized finance (DeFi) and digital dollars has dramatically increased over the past few years. There are more than 1 billion unbanked people who own a mobile phone, and crypto could be a perfect way for their financial inclusion. Furthermore, the report throws light on how DAO or Decentralized Autonomous Organizations are connecting strangers to develop a robust democratically controlled ecosystem, and NFTs or Non-fungible tokens are granting property rights to virtual items.
The state of the crypto report also shows a hidden price-innovation cycle, a co-relation in the crypto market, where a surge in price leads to interest, new ideas, and eventually startups and projects. As per the report, the market is currently in the fourth ‘price-innovation’ cycle.The study also covers the widely discussed topic of web 3. It admits that web 3 is still in its infancy, however, the demand for web 3 developers are rapidly increasing over the past few years.
Despite the ongoing winter in the crypto market, this report analyzes the hidden aspects and brings the positive sides that carry blockchain technology forward through many real-world usages.