Ethereum’s popularity 'a double-edged sword’ — a16z's State of Crypto report
“Ethereum’s overwhelming mindshare helps explain why its users have been willing to pay more than $15 million in fees per day on average just to use the blockchain,” a16z stated. Crypto venture fund giant Andreessen Horowitz (a16z) has highlighted that development and demand on Ethereum is “unmatched” despite the network’s high transaction fees.The firm does warn, however, that its “popularity is also a double-edged sword” given Ethereum prioritizes decentralization over scaling, resulting in competing blockchains stealing market share with “promises of better performance and lower....
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A16z, a leading VC company in crypto, is reportedly ramping up its investments in the field this year. The company is said to be looking for $4.5 billion to invest in different cryptocurrency-related funds. This amount more than doubles the entire amount the company invested in crypto last year.
A16z to Double Down on Crypto
A16z will continue to put funds behind cryptocurrency-related projects this year, according to reports. The VC company, which focuses its investments on tech-related companies and has more than $28 billion in assets, is seeking $4.5 billion dollars to invest....
The bull market effect has made Know Your Customer regulation more important than ever for cryptocurrency exchanges. During 2017’s bull market, most crypto services lacked the proper Know Your Customer and Anti-Money Laundering measures. Even in 2020, 56% of the analyzed 800 cryptocurrency exchanges and over-the-counter trading desks followed weak KYC practices, according to a CipherTrace report. However, the current digital asset rally has turned the crypto market upside down.As a result, KYC and AML have become top priorities for cryptocurrency providers, with many industry players....
More demand could just mean bigger correlations to traditional markets, the bank’s researchers say. Bitcoin (BTC) and cryptocurrency adoption may not necessarily make its price higher in dollar terms, Goldman Sachs argues.In a note seen by Bloomberg published Thursday, the international banking giant claimed that mainstream acceptance of crypto assets would increase their correlation to other mainstream asset classes.Goldman: Adoption is a “double-edged sword”In a view contrary to that of many Bitcoin proponents, Goldman sounded firmly uninspired by the prospect of crypto as a tool for the....
The number of U.S. crypto investors is set to almost double in 2021, according to a new survey by Gemini. Nearly two-thirds of adults in the United States are interested in learning more about cryptocurrencies like Bitcoin (BTC) or holding them soon, according to a new survey.Gemini, a crypto trading platform owned by Tyler and Cameron Winklevoss, released a new State of U.S. Crypto Report, providing insights about consumer trends in the crypto market in the U.S. The data was collected from a national survey of 3,000 U.S. adults aged 18 to 65 with $40,000 or more in household income.The....
Optimism has been on a hiring spree and plans to expedite its mainnet launch after securing backing from Andreessen Horowitz. Optimism, a company providing Layer 2 scaling solutions for Ethereum, has secured backing from venture capital firm and Coinbase investor Andreessen Horowitz, or A16z.Andreessen Horowitz, which manages a portfolio worth roughly $16.6 billion, announced it is leading Optimism’s $25 million Series A investment round on Feb. 24.The demand for Layer 2 scaling solutions has escalated amid Ethereum’s surging fees, with average transaction costs pushing as high as $40 on....