Andreessen Horowitz (a16z), a leading crypto venture capital firm, has produced an annual report on the industry’s current developments and state. The study reaffirmed the firm’s bullish views on Web3, predicting long-term growth for the industry. It remarked on Ethereum’s dominant position among layer-one blockchains.
a16z crypto's 1st annual overview of industry trends.
For creators, entrepreneurs and builders seeking to understand the evolution of the internet and the current journey towards a decentralized, community-owned and operated alternative to web2 platforms. https://t.co/3UfgYrK9um
— a16z (@a16z) May 22, 2022
a16z condensed the analysis into a few key takeaways, focusing mostly on the state of Web3 and Ethereum. The VC behemoth attributed the latest market selloff to a likely seasonal dip while maintaining that the crypto-powered Web3 might be one of the decade’s biggest opportunities.
Takeaways by a16z
a16z condensed the analysis into a few key takeaways, focusing mostly on the condition of Web3 and Ethereum. The VC behemoth attributed the latest market selloff to a likely seasonal dip while maintaining that the crypto-powered Web3 might be one of the decade’s biggest chances.
Web3 offers far better economic terms than Web2 giants like Meta, according to the corporation. Primary sales of Ethereum-based NFTs plus royalties paid to producers from secondary sales on OpenSea totaled $3.9 billion in 2021 – four times more than what Meta had paid its creators through 2022.
Despite the fact that YouTube and Spotify paid out $15 billion and $7 billion to their creators, respectively, as of 2021, each musician on Spotify and each channel on YouTube received only $636 and $2.47, according to the research. By classifying NFT collections as Web3 creators, the company claims that there are 22,400 Web3 producers and that “web3 paid out $174,000 per creator.”
A16z cited blockchain initiatives like Flowcarbon, Helium, and Spruce as the excellent potential for solving substantial real-world challenges by using the DLT capabilities in privacy, transparency, and decentralization, in addition to crediting DeFi as a disruptor to the existing banking industry.
Recently, a16z launched a $600 million investment fund for the gaming ecosystem, reiterating its emphasis on Web3.