3 Takeaways from a16z's State of Crypto Report

If you don't know who a16z is, they're a venture capital firm that manages assets valued at over $28 billion. They've invested in hundreds of companies since they first started back in 2009 and are seen as leaders in myriad ways.

a16z released a State of Crypto report on April 11 with all of their findings from 2022. It's a dense report that touches on all aspects of crypto, from NFTs to gaming, from its history to its future, and from failures to successes.

Rather than make you stuff 60 pages of this cerebral content into your brain and risk pushing out a memory you actually want to keep, I dove into this report for you. I came back smarter, wiser, and more certain than ever that web3 is the future of just about everything.

We're Not That Early

Below is a list of major brands that aren't just experimenting with web3 tech, they've fully adopted the culture and are moving forward with it in mind.

• McDonald's

• Nike

• Nickelodeon

• DC Comics

• New Jersey Devils Hockey

• Tiffany & Co.

• Addidas

• Golden State Warriors Basketball

• Wendy's

• HBO

• Coachella

• Starbucks

• Porsche

• Gucci

• Dave & Busters

• Warner Bros.

I could go on.

But I won't.

But I could.

But I won't.

You get the point: we're not actually that early. If McDonald's and Dave & Busters beat you to something, you can't claim to be that early.

That said, we are early enough that regulation battles will be long and protracted for our future, at least in the US. We are still early enough that most people don't own a digital wallet or NFTs. And we are still early that you can explain how crypto will revolutionize global markets at the dinner table and continue to sound fringe.

Bear Markets Don't Matter

Bear Markets are bad for investors. In a bull market, investors can shotgun their money pretty much anywhere and expect returns. In a bear market, no one expects returns, but they can still be found here and there.

See, the thing is: builders build. Whether it's a bear market, bull market, or some chimera market that defies traditional definition, builders build. If you're not an investor, bears and bulls shouldn't matter that much. And even if you are an investor, you should know that founders are still building even when markets are cycling.

Bear market? No, we call it a build market.

Ignore Video Games At Your Peril

Don't do it. Don't you do it. Don't sleep on video games.

717 blockchain video games were released in 2022. And while you and I both know about 90% of those games are complete and utter scams, the ones that aren't are worth billions of dollars.

• Axie Infinity's market cap - $1 billion

• ApeCoin's market cap - $1.6 billion

• Decentraland's market cap - $1.2 billion

• The Sandbox's market cap - $1 billion

There are 3 billion gamers around the globe, and they collectively spent $67 billion on in-game items in 2022. By 2026, video games beat out all other forms of entertainment based on Newzoo numbers.

This is why Netflix is pivoting hard into video games; they know what's coming. Steaming, TV, movies, documentaries, concerts, and even porn will take a backseat to video games by 2026.

Okay, maybe not porn. That industry has cockroach status, they'll never die.

But the point remains: video games are an important market. They generate 23x the number of transactions that DeFi generates, and Uniswap just collectively passed $1 billion from transaction fees.

Video games. That's the argument. And considering a16z started Speedrun and their own gaming branch, a16z Games, I'd say they know what the future holds.

This Is Only The Beginning

a16z's State of Crypto report is 60 pages long and full of more insights than I could cover in a two-hour conversation. Luckily, the Bankless Bros. already beat me to the punch and released an episode with Eddie Lazzarin that dives deep into the State of Crypto report.

Have you read the report? Any insights that you gleaned from its colorful graphics?