Briefly on the situation on the market from a16z fund 5 main | NFT QE

Briefly on the situation on the market from a16z fund

5 main theses:

We are in the middle of the "price-innovation" cycle

All markets are cyclical, even the crypto market. Price is a key factor that attracts developers and investors to a project. Then new ideas, startups are born.

As Benjamin Graham said, "It's better to build." Whoever left the market after the dot-com bubble lost the boom of social networks, streaming services, games, etc.

Web3 is many times better for creators than Web2

YouTube, AppStore, Meta take from 30% commission from the earnings of content makers. At the same time, OpenSea - only 2.5%.

Let's calculate the income per 1 creator:
Web3 is $174,000 per creator, Meta is $0.10 per user, Spotify is $636 per artist, and YouTube is $2.47 per channel.

"You understand that something is deeply wrong with our economy, Big Tech takes more% than the mafia."

Crypto affects the world

More than 1.7 billion people do not have bank accounts. The demand for DeFi and stablecoins has skyrocketed over the past few years, even with the recent downturn.

Of course, there is a risk in the form of UST/LUNA. But the SCAM of some African bank has the same probability.

Ethereum is a clear leader, but faces competition

ETH's leadership is due to its early launch and the trust of over 4,000 developers. Ethereum sacrifices the speed and cost of transactions in favor of decentralization [and security].

Layer-2 solutions are called upon to solve the scalability problem: optimistic, zk-rollups.

We are at an early stage

Today there are 7-50 million Ethereum users. So many users were on the Internet by 1995.

If the trend continues, by 2031 we will have 1 billion Web3 users. This is by analogy with the Internet in 2005, when the giants of the industry YouTube, Facebook