Marc Baumann’s Post

Great overview of the state of crypto and blockchain networks.

Don't miss out on this insightful report from a16z crypto about the crypto market in 2024—it's a must-read! I’ve attached the link for your convenience. A lot of thanks Daren Matsuoka, Robert Hackett and Eddy Lazzarin https://lnkd.in/dyA-KYXY

Why is Bitcoin and the broader crypto market flirting with an all time high? Personally I don’t think it’s any one thing. Here’s my take on a number of factors: 1. Political Environment We’re closing in on a very uncertain election in the US, and while promises have been made by both candidates, ultimately how crypto is treated is mostly about Congress. Neither candidate really seems to understand it well, and so I think the hype from that is the smokescreen. The underlying force is uncertainty. Right now it seems like whatever happens in this country, we are in for a very bumpy ride, and crypto is the most anti-fragile thing we have right now. I’m not sure anyone who understands crypto can sit this critical period out, even if for whatever reason you’re not a big fan, it’s a risk management strategy. 2. True mainstream adoption is underway. It doesn’t look like Satoshi’s vision for Bitcoin, but some of the largest financial services entities on the planet are planning, launching, or scaling crypto-enabled business lines and products. They’re going on national television and telling people about it routinely. The more this happens, the faster the flywheel goes. 3. Crypto and AI have finally reached a nexus. I’ve spoken before about these being convergent technologies and that AI and machines will need a secure, digitally native currency in order to behave autonomously, and that’s exactly what has started happening this past week in particular. AI agents are now being equipped with wallets so that they might independently perform work, and settle up with any respective party directly without halting their workflow to consult a human. The market for this is going to be bigger than anything we’ve ever seen. The remittances between parties will also wind up happening so frequently that no legacy infrastructure could even hope to keep up. There are other price drivers, but these are the ones that really stand out to me as generating new demand outside of the routine crypto use case of hedging against inflation as a store of value. Anyway, my crypto friends, am I missing anything?

Last week we released our latest State of Crypto report. It shared insights on key trends around the space from stablecoins to policy issues. The part I found most interesting was the increase in crypto activity and usage hitting all time highs! Check out the full report: https://lnkd.in/gdeJMuyJ This is an excerpt of a16z crypto’s State of Crypto. The full report should be read in its entirety for important disclosures and context. None of the above should be taken as investment advice or an advertisement for investment services; see a16z.com/disclosures for further information.

🧑🎓 𝐇𝐎𝐖 𝐁𝐈𝐆 𝐈𝐒 #𝐂𝐑𝐘𝐏𝐓𝐎 𝐓𝐎𝐃𝐀𝐘? 𝐒𝐓𝐀𝐓𝐄 𝐎𝐅 𝐂𝐑𝐘𝐏𝐓𝐎 𝐀𝐍𝐍𝐔𝐀𝐋 𝐑𝐄𝐏𝐎𝐑𝐓 𝐀𝐙𝟏𝟔 (October 2024) Andreessen Horowitz (best known as a16z) is a venture capital firm that backs bold entrepreneurs building the future through technology. Every year they release an annual "State fo Crypto Report". This is their 3rd edition and worth a read. Some important key takeaways are: 1️⃣𝐂𝐫𝐲𝐩𝐭𝐨 𝐮𝐬𝐚𝐠𝐞 𝐡𝐚𝐬 𝐫𝐞𝐚𝐜𝐡𝐞𝐝 𝐫𝐞𝐜𝐨𝐫𝐝 𝐥𝐞𝐯𝐞𝐥𝐬, showing sustained interest despite market volatility. 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐫 𝐞𝐧𝐠𝐚𝐠𝐞𝐦𝐞𝐧𝐭 is also at an all-time high, reflecting innovation and new applications. 2️⃣ 𝐔.𝐒. 𝐞𝐥𝐞𝐜𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝟐𝟎𝟐𝟒 𝐰𝐢𝐥𝐥 𝐬𝐞𝐞 𝐜𝐫𝐲𝐩𝐭𝐨 𝐚𝐬 𝐚 𝐦𝐚𝐣𝐨𝐫 𝐩𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐢𝐬𝐬𝐮𝐞. As the technology matures, regulation becomes more pressing, and candidates are increasingly discussing how they will address blockchain and digital assets. 3️⃣ #Stablecoins, cryptocurrencies tied to stable assets like the U.S. dollar, are becoming more popular. Their price stability and usefulness in everyday transactions are driving this adoption, making them a preferred choice over more volatile assets. 4️⃣ 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 𝐢𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐡𝐚𝐬 𝐬𝐞𝐞𝐧 𝐢𝐦𝐩𝐫𝐨𝐯𝐞𝐦𝐞𝐧𝐭𝐬 that make it cheaper and faster to use. These upgrades reduce transaction fees and processing times, making crypto more accessible to users and increasing the likelihood of widespread adoption. 5️⃣ 𝐃𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐞𝐝 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 (#DeFi) is growing rapidly. By cutting out traditional financial intermediaries, DeFi platforms offer users new ways to borrow, lend, trade, and earn interest. This expansion represents a shift toward more decentralized control over financial services. 6️⃣ The 𝐢𝐧𝐭𝐞𝐫𝐬𝐞𝐜𝐭𝐢𝐨𝐧 𝐨𝐟 𝐚𝐫𝐭𝐢𝐟𝐢𝐜𝐢𝐚𝐥 𝐢𝐧𝐭𝐞𝐥𝐥𝐢𝐠𝐞𝐧𝐜𝐞 (𝐀𝐈) 𝐚𝐧𝐝 𝐜𝐫𝐲𝐩𝐭𝐨 is an emerging trend. Crypto technologies are helping solve some challenges faced by AI, such as managing vast amounts of data and distributing computing power more efficiently. This overlap is opening up new frontiers for both fields. So, public networks, better user interfaces, more adoption... what are you waiting for? See the complete report in the link down below these lines. #consultancy Shareyourworld

The new state of crypto report by a16z crypto is out. What excites me to see is: 📈 More and more people actively use crypto - Monthly active addresses are at an all-time high of 220M and growth rates compare to the internet adoption rates  👊  Stablecoins establish themselves as one of the killer apps ⚙️   Continuous infrastructure improvements leading to drastic cost reductions   📕 EU and UK are leading in terms of public engagement – more clarity in terms of regulation is crucial Great read!! Still more work to be done, let’s get on with it and make the digital assets space more accessible in a safe and compliant manner.

The world of cryptocurrencies is buzzing with exciting developments that are shaping the future of finance and technology. Here are some key highlights from today's international crypto news: Regulatory Shifts: Governments worldwide are reevaluating their stance on cryptocurrencies. From proposed regulations to discussions on central bank digital currencies (CBDCs), the regulatory landscape is evolving, impacting how businesses and individuals engage with digital assets. Institutional Adoption: Institutional interest in cryptocurrencies continues to grow. Major financial institutions, investment firms, and corporations are embracing digital assets, with announcements of crypto investments, blockchain initiatives, and NFT (non-fungible token) projects making headlines. Market Volatility: The crypto market remains dynamic, with fluctuations in prices and market trends. Factors such as macroeconomic events, regulatory announcements, and technological advancements can influence market sentiment and investment strategies. DeFi and Web3 Innovation: Decentralized finance (DeFi) and Web3 technologies are driving innovation in the crypto space. From decentralized exchanges (DEXs) to blockchain-based applications, the ecosystem is expanding rapidly, offering new opportunities for developers, investors, and entrepreneurs. Environmental Sustainability: The discussion on crypto's environmental impact continues, with initiatives focusing on sustainable blockchain solutions and energy-efficient mining practices gaining traction. Environmental considerations are becoming integral to the crypto narrative, shaping industry standards and best practices. As the global crypto ecosystem matures, staying informed and adaptable is crucial for navigating this fast-paced industry. Whether you're a crypto enthusiast, investor, or business leader, understanding these international trends can help you make informed decisions and seize opportunities in the evolving crypto landscape. What international crypto news caught your attention recently? Share your insights and perspectives in the comments below! Let's engage in a meaningful dialogue about the future of digital finance. 💡 #CryptoNews #BlockchainTechnology #DigitalFinance

💸 Not Everyone Will Win in This Market Cycle 💸 Source: @QuantMeta If you want to go further, change your mindset and break away from the crowd. The old metrics—like Coinbase app rankings—no longer work for predicting market peaks. What were “sure signals” in 2017 or 2021 aren’t reliable anymore. The 2024-2025 cycle will be entirely different. 📊🔍 🧠 1. Shift Your Mindset: Move Beyond Old Metrics When we focus on metrics like new users or retail investors, we often overlook other crucial factors. Also, awareness of crypto doesn’t equal market saturation. • 2017: Few knew Bitcoin. • 2021: Almost everyone heard of it. • Now: Crypto is mainstream, but that doesn’t mean spotting the top is easier. 🏦 2. The Market Is Now Controlled by Institutions Power dynamics are shifting. BlackRock and big firms control sentiment, shaping narratives to steer markets. Retail indicators are less relevant. Key question: If this cycle is driven by institutions, why use retail metrics to predict a peak? 🔍 3. New Signals to Watch For Broaden your perspective. Real signals will come from larger sources: • Sovereign Wealth Funds diversifying into Bitcoin (Saudi Arabia, Abu Dhabi, China, Norway). • Corporate Bitcoin buys: Like Tesla in 2021. • Crypto IPOs: If multiple firms go public, it might signal the top. • Leverage: Funds and companies might over-leverage, risking collapse. • Restaking risks: Depegging events could trigger a bear market. • Governments moving from gold to Bitcoin could be the ultimate signal. 🚫 4. Don’t Try to Predict the Market George Soros said: “Markets are unpredictable. Trying to forecast them only puts you at odds with their nature.” Instead, observe new signals, prepare for scenarios, and stay flexible. In summary: This cycle is different. Focus on institutions, sovereign funds, and broader changes to spot the market top.

𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗪𝗮𝘃𝗲𝘀 𝗼𝗳 𝗖𝗿𝘆𝗽𝘁𝗼 𝗩𝗼𝗹𝗮𝘁𝗶𝗹𝗶𝘁𝘆 𝗔𝗺𝗶𝗱 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗠𝗮𝗿𝗸𝗲𝘁 𝗔𝗰𝘁𝗶𝗼𝗻 🌊💼 With the recent ebbs and flows in the crypto market, discussing the inherent volatility of cryptocurrencies has never been more relevant. The space is known for its rapid and significant price movements, making it a unique landscape for investors and enthusiasts alike. Here’s what you need to know about the forces behind these fluctuations: 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗮𝘁𝘂𝗿𝗶𝘁𝘆: Despite its growing popularity, the crypto market is relatively young and less mature than traditional financial markets, leading to pronounced price movements. 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗖𝗼𝗻𝗰𝗲𝗿𝗻𝘀: The trading volume of many cryptocurrencies is lower than that of conventional assets, making them susceptible to large price swings following sizable trades. 𝗧𝗵𝗲 𝗦𝗽𝗲𝗰𝘂𝗹𝗮𝘁𝗶𝗼𝗻 𝗦𝗽𝗶𝗿𝗮𝗹: A significant portion of crypto trading is driven by speculation on future values, which can lead to dramatic price changes. 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗥𝗶𝗽𝗽𝗹𝗲 𝗘𝗳𝗳𝗲𝗰𝘁𝘀: The crypto market is highly sensitive to regulatory news. Announcements from governments can have immediate and substantial effects on prices. 𝗧𝗲𝗰𝗵 𝗮𝗻𝗱 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆: Innovations in blockchain technology, protocol upgrades, and security breaches directly influence market prices, with positive developments causing spikes and negative news leading to drops. 𝗧𝗵𝗲 𝗦𝗲𝗻𝘁𝗶𝗺𝗲𝗻𝘁 𝗙𝗮𝗰𝘁𝗼𝗿: Investor sentiment, heavily swayed by social media and news, plays a crucial role in the crypto price volatility, leading to swift market changes. 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻’𝘀 𝗗𝗼𝘂𝗯𝗹𝗲-𝗘𝗱𝗴𝗲𝗱 𝗦𝘄𝗼𝗿𝗱: The rate at which cryptocurrencies are adopted can influence market stability. Increased adoption may lead to stability, while slow adoption rates can contribute to volatility. Given the current market price action, it's imperative to delve into the concept of volatility. Understanding these drivers is essential for anyone navigating this space. The potential for high returns exists, but so does the risk of significant losses. Employing strategies like diversification, setting stop-loss orders, and keeping abreast of market trends can mitigate some of the risks associated with crypto volatility. As the market continues to evolve, the ability to adapt to and capitalise on its volatility will be key. The future is as unpredictable as it is exciting for those ready to embrace the challenge.

In today's crypto news recap, the sudden drop wiped out recent gains and caused chaos in the market, showing just how unpredictable crypto can be. If you find this useful, do not forget to subscribe, it's free!