Around 8% of American population own cryptocurrency assets, as per the Chainalysis State of Web3.0 report, 2022. The report highlights that percentage of cryptocurrency owners is not only growing in US but on a worldwide scale, and is expected to reach a point of mass adoption. Web3.0 is anticipated to help people who might put a high amount of their net worth into cryptocurrency, and would want to use it to the full extent of fiat, for purposes such as lending and borrowing, trading assets, and payments.
Insights from the report stated that Web3.0 can open new use cases in finance that are not viable due to illiquidity of traditional assets. Moreover, the report mentioned Web3.0’s ability to create more direct relationships between sellers and customers, and ensure community ownership of companies. In Q2 of 2021, decentralised finance (DeFi) activity reached close to four trillion dollars in transaction volume. While price went down for Ethereum and other assets, number of individual transfers stayed same and increased in some quarters.
As per the report’s data, bitcoin accounted for bulk of cryptocurrency transaction volume in 2016 but represented over 10% in 2022, with cryptocurrencies which have smart contract feature to power Web3.0 and DeFi accounted for 45%. Meanwhile, a number of practices to generate economic activity such as users who trade and speculate on decentralised exchanges (DEX), borrowers who stake their existing cryptocurrency to access capital, non-fungible token (NFT) collectors who earn money through play to earn, and decentralised autonomous organisations (DAOs) which receive billions in exchange for governance tokens has been mentioned in the report.
Furthermore, the report showed that Web3.0 based organisations can become democratised in the long term. Data from the report anticipated that DeFi adopters can establish themselves as cryptocurrency users, and NFT usage has brought in new users to the cryptocurrency ecosystem.
(With insights from the Chainalysis State of Web3.0 Report, 2022)