VC Firm Says US Loses Lead in Web3 World

Venture capital firm Andreessen Horowitz said in a recent report that the share of global crypto developers based in the US decreased by 26% from 2018 to 2022.

Horowitz’s report, titled “State of Crypto 2023: Introducing the State of Crypto Index,” is used as an interactive tool to track the health of the crypto industry from a technological rather than financial perspective.

The report noted: “Between 2018 and 2022, the proportion of crypto developers based in the US vs. the rest of the world fell 26%,” a matter which makes the US lose its lead in the Web3 world.

In 2022, the share of global crypto developers, based in the US, declined by 30%, however, the report mentioned that the US could regain the lead again through thoughtful regulation.

Regarding the number of active developers in the crypto industry, the report mentioned that the last three months witnessed a steady increase of 60% in the number of active crypto developers, adding about 30,000 developers contributed to or built on crypto projects in the last month.

The report pointed out that the DeFi and NFT activity is rising again after a period of cooldown, explaining that people headed again to buying NFTs over the past months. The decentralized exchanges witnessed a total trade of over $100 billion in the last month, marking the third successive month of positive growth in trading volume.

It also mentioned the world’s biggest brands that explore web3, beginning with NFTs, including Starbucks, Gucci, Louis Vitton, TIME, Porsche, Adidas, Reddit, Nike, Nickelodeon, and Draftkings.

Andreessen Horowitz also referred to the importance of the Web3 games, saying they generate 23x more on-chain transactions than DeFi. According to the report, 717 new web3 games were launched last year, representing an opportunity for new people to join the crypto industry.