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A16z Report: Unpacking Crypto’s Real Active Users in 2024
- Blockchain addresses don’t necessarily translate to active crypto users, according to a report from VC firm Andreessen Horowitz (a16z).
- a16z’s unique methodology looked at wallet behaviour and industry data to make an estimate of 30-60 million active users.
- With 617 million crypto holders globally, there is potential to engage dormant users as infrastructure improves and more diverse use cases emerge.
- Creating multiple addresses on blockchains has become cheap and easy, making it hard to determine real user activity from bot activity for airdrop farming.
- a16z used filters to eliminate certain types of addresses that likely belong to bots.
- The VC firm also drew upon wallet usage from MetaMask on the Ethereum blockchain, extrapolating the data to estimate its total market share.
- Based on the data, a16z estimated 30-60 million legitimate users of cryptocurrencies.
- These figures account for just a small percentage of the 220 million active addresses measured in September 2024 and compares to an estimated 617 million global crypto owners.
- Infrastructure improvements and more consumer-friendly applications will be key in onboarding passive crypto holders.
- As a more compelling use case for crypto continues to emerge, the report suggests it could result in a wave of new users hitting the blockchain.
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