*NEW*: For discussion of report methodology, metrics, and other FAQs about the report below, check out this episodeof the ‘web3 with a16z’ podcast (now available wherever you get your podcasts).
A lot has changed in the state of crypto since we started investing in the area nearly a decade ago.
This report is the first of what will be an annual overview of trends in the crypto industry, shared through the a16z crypto vantage point of both tracking data and across the countless entrepreneurs and builders we meet. It’s for anyone who seeks to understand the evolution of the internet, and where we are on the journey towards a decentralized, community-owned-and-operated alternative to the centralized tech platforms of web2 – especially as it touches creators and other builders.
The top themes are distilled into five summary takeaways below, but be sure to dig into these 50+ slides (full deck for the 2022 State of Crypto Report available for download below); be sure to also sign up for the a16z crypto newsletter to continue getting insights as well as updates about upcoming resources and to listen to the new web3 with a16z podcast to dive deeper into the findings and methodology.
5 key takeaways
#1 We’re in the middle of the fourth ‘price-innovation’ cycle
Markets are seasonal; crypto is no exception. Summers give way to the chill of winter, and winter thaws in the heat of summer. Advances made by builders during dark days eventually re-trigger optimism when the dust settles. With the recent market downturn, we may be entering such a period now.
