Cryptocurrency one of the largest investment funds in the industry. Andreessen Horowitz (a16z), published a very important report for the crypto money industry. While many cryptocurrencies are mentioned in general in this report published by A16Z, Ethereumto (ETH) was specifically mentioned.
ETH’s Popularity Doesn’t Benefit
A16Z highlighted that the popularity of the second largest cryptocurrency by total market capitalization is both good and bad. Noting that Ethereum prioritizes decentralization instead of scaling, experts emphasized that other blockchain networks can stand out with better performance and lower transaction fees due to the increase in popularity.
The fact that Ethereum is so popular and widely used will prevent it from lowering transaction fees, according to experts.
Company data scientist Daren Matsuoka and General Manager Chris Dixon In the report prepared by names such as, very important issues are mentioned. All of these issues are supported by data.
Introducing a16z’s 2022 State of Crypto Report
A lot has changed since we started investing in crypto nearly a decade ago.
Here are 5 key takeaways from the a16z crypto web3 industry survey and data analysis by @darenmatsuoka, @eddylazzarin, @cdixon & @rhhackett ⬇️ pic.twitter.com/JFLXbNh03u
— a16z (@a16z) May 17, 2022
Looking at the data in the report, Ethereum is currently the most popular network among developers. Compared to ETH, which has 4,000 monthly active developers and contributors, Solana has 1,000 monthly developers. Bitcoin and Cardano are third and fourth with 500 and 400.
Analysts stated that the transaction fees in the ETH network always remained high. ETH 2.0′He emphasizes that the situation may change with the arrival of.
In summary, according to the report, if the arrival of ETH 2.0 is delayed and transaction fees continue to get out of hand, it is considered possible for other alternatives to overtake ETH.
On the other hand, referring to the number of users of ETH, the company made the following statement:
EthereumIt currently has between 7 and 50 million users. This puts us somewhere around 1995 for the early internet. If the trend lines continue like this, web3 could reach 1 billion users in 2031. We are still in the early stages.