The digital assets landscape is becoming increasingly mainstream, as detailed in the annual “State of Crypto” report published by venture capital firm Andreessen Horowitz.
The report emphasizes the growing international market for stablecoins, the maturation of infrastructure, and a notable decline in transaction fees, all contributing to a surge in crypto activity throughout the year.
Active Monthly Crypto Addresses Surge To 220 Million
Eddy Lazzarin, Chief Technology Officer at Andreessen Horowitz, stated, “Crypto activity is at an all-time high,” indicating significant growth across multiple dimensions of the market.
The report, released on Wednesday, categorizes crypto activity into three main segments: users, owners, and active crypto addresses.
While the category of “owners” refers to individuals who possess digital assets without necessarily engaging with the blockchain, “users” are those who actively utilize blockchain technology for transactions such as purchasing non-fungible tokens (NFTs) or transferring Circle’s USDC stablecoin.
Notably, only a small percentage—between five to ten percent—of crypto owners are classified as active users.
However, the report further reveals a notable increase in active monthly addresses, which soared to 220 million in 2024, a substantial rise from below 100 million in 2023.
According to the firm’s analysis, this growth trajectory mirrors the early adoption patterns observed during the internet’s nascent stages.
Additionally, the total number of global crypto owners has reached 617 million, while the number of active users ranges from 30 to 60 million.
Lazzarin attributes the disparity between owners and active users to “the complex user experience,” suggesting that enhancing app usability, lowering costs, and achieving regulatory clarity could re-engage passive crypto owners.
Decline In Transaction Fees Key To growth?
Stablecoins have found what Lazzarin describes as “product-market fit.” The report notes that 32% of daily crypto activity is now driven by stablecoins, surpassing all categories except decentralized finance (DeFi).
This growth has been especially pronounced in countries facing hyperinflation, such as Argentina, where the local peso depreciated by 82%. In response, Lazzarin explains that many Argentinians have turned to stablecoins to “safeguard” their assets, leading to a 10,000% increase in stablecoin trading on the Mexican exchange Bitso.
Declining transaction fees have fueled this record activity in the digital asset space. The report highlights how advancements in Ethereum’s scaling solutions have decreased the cost of sending USD internationally by 99%.
While traditional international wire transfers typically incur fees of around $44, transferring USDC via Coinbase’s Base Layer 2 solution costs less than one cent.
Ultimately, the report attributes this cost reduction to a “maturing” digital asset infrastructure, which includes new blockchains and increased interoperability.
At the time of writing, the total crypto market capitalization stands at $2.27 trillion, with approximately $250 million of fresh capital injected into the digital asset ecosystem over the past 5 days.
Featured image from DALL-E, chart from TradingView.com