The giant of crypto venture funds, Andreessen Horowitz (a16z), has stated that demand and development for Ethereum are “unmatched” despite the high transaction fees on the network.
The company does warn that “popularity can be an unbalanced weapon,” Ethereum is a proponent of decentralization over scaling, which has led to competing blockchains stealing market share based on “promises of greater performance and lower costs.”
The comments came from an article on the blog that introduced a16z’s 2022 “State of Crypto” report. The company’s chief research scientist Daren Matsuoka, the head of engineering and design for protocol, Eddy Lazzarin, director of operations Chris Dixon and director for content, Robert Hackett, all worked together to offer five major conclusions from the research.
Other than Ethereum, the report is focused on other areas like Web3 development, cryptocurrency use rates, decentralized financial (DeFi), and stablecoin.
Based on the data in The report, Ethereum outdoes the rivals in terms of builder interest since the network has a total of 4000 active developers per month compared to the second-ranked Solana with a mere 1,000. Bitcoin, as well as Cardano, are the next two, with around 500 and 400 each.
The analysts concluded that “Ethereum’s leadership has a lot to be due to its early beginning and also the condition of the community” However, they also emphasized the importance of the growth that continues to accelerate on the network, despite its cost of transactions that are high:
“The fact that its customers are willing to spend over 15 million dollars per day to access the blockchain explains Ethereum’s massive mindshare, which is incredible for such a young company.”