Blockchains Hit 220M Active Addresses, Reports a16z Study

A recent “State of Crypto” report from venture capital firm Andreessen Horowitz (a16z) reveals that the blockchain sector has reached unprecedented levels of activity and engagement.

The report states that in September 2024, 220 million addresses engaged with a blockchain at least once, a number that is three times greater than the figure recorded at the end of 2023.

Solana Tops Active User Count

The majority of the engagement was driven by Solana, which recorded 100 million active users. This was followed by NEAR with 31 million users. Coinbase’s Layer 2 (L2) network, Base, came in third with 22 million active wallets, while Justin Sun’s Tron network had 14 million interactions.

Bitcoin recorded 11 million unique users, with Binance’s BNB Chain following closely in sixth place with 10 million.

Moreover, interest in Solana among blockchain developers increased by 11.2%, up from a modest 5.1% in 2023. Similarly, enthusiasm for Base rose, with its share of developers growing to 10.7% from last year’s 7.8%.

The proportion of crypto founders interested in the Bitcoin ecosystem also climbed to 4.2%, a slight rise from the 2.6% that showed interest in 2023.

Another significant finding from the a16z report is the rapid growth of stablecoins, which have outstripped traditional payment systems. In Q2 2024, stablecoins processed $8.5 trillion in volume, more than double Visa’s $3.9 trillion during the same timeframe.

A16z researcher Darren Matsuoka commented on the report, noting that stablecoins have emerged as the crypto ecosystem’s standout “killer app,” largely due to low transaction fees. He highlighted that sending USDC on L2 networks like Base now costs less than a penny, compared to an average fee of $44 for international wire transfers.

Crypto’s Increasing Influence in U.S. Politics

Additionally, the report indicates that crypto has become a significant political issue with upcoming U.S. elections.

Both Donald Trump and Vice President Kamala Harris have made attempts to engage with the crypto community to varying extents. A recent survey by Galaxy Research shows that while Trump is generally more favored, there is optimism within the community that Harris could be more supportive of the industry than Biden has been.

Google Trends data shows an increase in search interest for cryptocurrency in swing states such as Pennsylvania and Wisconsin, ranking them among the top five states with the highest growth in crypto interest.

Other battlegrounds where interest in crypto has risen include Michigan and Georgia, while states like Arizona and Nevada have seen a decline.

According to a16z, one factor contributing to this surge in interest in digital assets is the introduction of spot Bitcoin and Ethereum ETFs, which currently hold nearly $90 billion in on-chain assets.