State of Crypto Report 2024: Key Trends in Policy, Infrastructure, and Adoption

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The cryptocurrency landscape has undergone transformative changes over the past year, marked by breakthroughs in policy, rapid technological advancements, and accelerating user adoption. The 2024 State of Crypto Report from a16z crypto captures this pivotal moment—highlighting how blockchain is evolving from niche innovation to mainstream infrastructure.

This comprehensive analysis explores seven core developments shaping the future of digital assets: record-breaking user activity, crypto’s rise in political discourse, stablecoins achieving product-market fit, infrastructure scalability, the enduring momentum of DeFi, convergence with artificial intelligence (AI), and the emergence of novel on-chain applications.

1. Crypto Activity and Usage Hit All-Time Highs

For the first time, active blockchain addresses have surged to unprecedented levels. In September 2024 alone, over 22 million addresses interacted with a blockchain—more than triple the count since late 2023. While metrics like active addresses can be subject to manipulation, they still reflect a clear upward trend in network engagement.

Solana leads the charge, accounting for approximately 100 million active addresses. It’s followed by NEAR (31 million), Coinbase’s Layer-2 network Base (22 million), Tron (14 million), and Bitcoin (11 million). Among Ethereum Virtual Machine (EVM)-compatible chains, BNB Chain ranks next with 10 million, while Ethereum itself maintains 6 million active addresses.

👉 Discover which blockchain platforms are attracting the most developer attention in 2024.

The surge isn’t limited to users—it’s mirrored in builder sentiment. According to the newly launched a16z Crypto Developer Energy Dashboard, founder interest in building on Solana jumped from 5.1% to 11.2% year-over-year, while Base rose from 7.8% to 10.7%. Bitcoin also saw growing developer interest, increasing from 2.6% to 4.2%.

Despite these shifts, Ethereum remains the top choice for developers at 20.8%, followed by Solana and Base. Other notable ecosystems include Polygon (7.9%), Optimism (6.7%), Arbitrum (6.2%), and Avalanche (4.2%).

On the consumer side, monthly active mobile crypto wallets reached 29 million in June 2024, a historical peak. While the U.S. accounts for 12% of these users, its share has declined as global adoption accelerates—especially in regions like Nigeria, India, and Argentina, where crypto is used for remittances, retail payments, and protection against inflation.

Estimates suggest 30–60 million monthly active crypto users globally, representing just 5–10% of the 617 million people who own crypto assets. This gap reveals a massive opportunity: turning passive holders into active participants through improved user experiences and accessible applications.

2. Crypto Emerges as a Key Political Issue in the 2024 U.S. Election

Cryptocurrency has entered the national political conversation like never before—especially in swing states that could decide the November election.

Google Trends data shows Pennsylvania and Wisconsin ranked fourth and fifth in crypto-related search interest since 2020, while Michigan climbed to eighth. Although Arizona and Nevada saw declines, overall engagement reflects growing public curiosity.

One major catalyst? The approval and launch of Bitcoin and Ethereum exchange-traded products (ETPs). These SEC-registered instruments—technically ETPs under Form S-1—have already accumulated $65 billion in on-chain holdings, expanding access to mainstream investors.

👉 Learn how regulatory clarity is driving institutional crypto adoption worldwide.

This regulatory milestone signals broader bipartisan support. In June 2024, the U.S. House passed the FIT21 Act with strong cross-party backing (208 Republicans and 71 Democrats), aiming to provide clear rules for digital asset issuers and exchanges.

At the state level, Wyoming’s Decentralized Autonomous Organization (DAO) bill (DUNA) grants legal recognition to DAOs, enabling decentralized networks to operate within existing legal frameworks without sacrificing autonomy.

Internationally, Europe leads in regulatory engagement. The EU’s Markets in Crypto-Assets (MiCA) regulation is set to fully take effect by year-end, offering a comprehensive framework for stablecoins, exchanges, and consumer protection.

Stablecoins are central to policy debates—not just as financial tools but as instruments of dollar dominance. Over 99% of stablecoins are USD-pegged, far surpassing euro-backed alternatives (0.20%). Remarkably, stablecoin reserves now rank among the top 20 holders of U.S. debt—surpassing nations like Germany.

As governments weigh central bank digital currencies (CBDCs), the U.S. has a unique opportunity to leverage private-sector stablecoins to strengthen both global influence and domestic financial resilience.

3. Stablecoins Achieve Product-Market Fit

Stablecoins have emerged as one of crypto’s first true “killer apps,” enabling fast, low-cost global transfers. As Congressman Ritchie Torres noted, “dollar stablecoins may become humanity’s greatest financial empowerment experiment.”

Infrastructure improvements have made this possible. On Ethereum, average gas fees for USDC transactions dropped from $12 in 2021 to just **$1 in mid-2024. On Base, sending USDC costs less than one cent**—a fraction of traditional wire fees averaging $44.

By Q2 2024, **stablecoin transaction volume hit $8.5 trillion across 1.1 billion transactions**, more than double Visa’s $3.9 trillion. This parity with legacy systems underscores their utility beyond speculation.

Unlike volatile crypto markets, stablecoin usage continues rising even during bear markets—indicating real-world utility in payments and savings.

In terms of daily usage share, stablecoins account for 32% of on-chain activity, second only to DeFi (34%). Their role spans remittances, merchant payments, and cross-border commerce—proving they’re not a fad but foundational infrastructure.

4. Infrastructure Upgrades Boost Capacity and Slash Costs

Behind the scenes, blockchain scalability has improved dramatically. Through Layer-2 solutions and high-throughput blockchains, transaction capacity now exceeds levels from four years ago by over 50x.

Ethereum’s Dencun upgrade (EIP-4844) in March 2024 introduced proto-danksharding, drastically reducing L2 transaction costs—even as usage grows. This means networks are becoming both more popular and more efficient.

Zero-knowledge (ZK) proofs are also advancing. While spending on ZK verification has decreased, value locked in ZK rollups continues to rise—showing that ZK tech is becoming cheaper and more widely adopted.

ZK-based virtual machines (zkVMs) still lag behind traditional computing in performance but represent a promising frontier for private, verifiable computation.

These advances explain why blockchain infrastructure remains one of the most popular categories for builders, with L2s ranking among the top five subcategories tracked.

5. DeFi Remains Strong and Expanding

DeFi continues to dominate usage metrics, capturing 34% of daily active addresses—edging out even stablecoins.

Since DeFi’s summer of 2020, decentralized exchanges (DEXs) now handle 10% of all spot crypto trading volume, up from near zero just four years ago.

Over $169 billion is locked across thousands of DeFi protocols, with key areas including lending, borrowing, and staking.

Two years after Ethereum’s shift to proof-of-stake (PoS), 29% of ETH is now staked—up from 11%—enhancing network security and decentralization.

As traditional banking consolidates—with two-thirds fewer banks since 1990—DeFi offers a compelling alternative: open access, transparency, and resistance to centralized control.

6. Crypto May Solve Critical AI Challenges

AI dominates tech headlines—and crypto builders are responding. One-third of crypto projects now integrate AI (up from 27% last year), particularly in infrastructure development.

But AI’s rising costs threaten centralization: training cutting-edge models requires resources only giant tech firms can afford.

Crypto offers solutions:

Together, these efforts aim to prevent AI monopolies and ensure equitable access—a mission aligned with crypto’s core values.

7. Scalable Infrastructure Unlocks New On-Chain Applications

Lower fees and higher throughput enable new use cases:

These experiences were impractical when gas fees were high—now they’re flourishing.

Frequently Asked Questions

Q: What is driving increased crypto adoption in 2024?
A: Key drivers include regulatory clarity (e.g., ETP approvals), infrastructure improvements (lower fees), and real-world use cases like stablecoin payments and DeFi services.

Q: Are stablecoins safe for everyday transactions?
A: Major USD-pegged stablecoins like USDC are backed by short-term U.S. Treasuries and cash equivalents, undergo regular audits, and offer transparency—making them reliable for payments when used responsibly.

Q: How do Layer-2 networks reduce Ethereum fees?
A: L2s process transactions off-chain and bundle them before settling on Ethereum, reducing congestion and lowering individual user costs by up to 99%.

Q: Can crypto help decentralize artificial intelligence?
A: Yes—projects are using blockchain to distribute AI compute resources, verify data provenance, protect creator rights, and ensure open access—countering trends toward corporate control.

Q: Why are developers shifting focus to Solana and Base?
A: These platforms offer high speed, low cost, strong developer tools, and growing communities—making them attractive for consumer-facing dApps.

Q: Is DeFi still relevant amid market cycles?
A: Absolutely. With over $169 billion in value locked and increasing daily usage, DeFi has evolved into a resilient financial layer offering lending, trading, and yield opportunities globally.

The past year has marked a turning point: crypto is no longer speculative—it's becoming functional infrastructure. From policy milestones to scalable tech and real-world adoption, the foundation is set for broader impact across finance, AI, governance, and digital identity.