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Andreessen Horowitz (a16z) Says There Is Likely 30–60 Million ‘Real’ Monthly Crypto Users

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Researchers at the venture capital giant Andreessen Horowitz (a16z) estimate there are tens of millions of “real” monthly crypto users.

Calculating crypto users can be difficult because people are often incentivized to create multiple public addresses for security or things like airdrop farming, according to a new analysis conducted by Eddy Lazzarin, the chief technology officer (CTO) for a16z Crypto, and Daren Matsuoka, a data scientist at the firm.

So even though Andreessen Horowitz measured 220 million unique monthly active addresses in the month of September, that doesn’t mean there are 220 million users, the researchers explain.

Using on-chain analytics and forensics, Lazzarin and Matsuoka filtered out addresses that receive funds from dispersion contracts, which are designed to take in funds and automatically distribute them across many different addresses. They also filtered out addresses that had near-zero balances at the beginning and the end of September, as well as addresses with many transactions over a very short period of time.

“Humans using a wallet or application interface can only reasonably process a certain number of transactions in a given period of time, whereas bots can transact at greater frequencies.” 

The duo also analyzed off-chain data sources, like MetaMask, which reports its monthly active wallet users.

Conclude the researchers,

“Based on our analysis using many of the approaches described above, we estimate there are 30–60 million real monthly crypto users today. This is a wide range, obviously, but it’s our best ballpark range based on the available data.

Note that this is just 14-27% of the 220 million monthly active addresses we measured in September.

It’s also just 5-10% of the 617 million global crypto owners reported by Crypto.com in June. (Global crypto owners refer to people who own crypto, but do not necessarily transact on-chain).

This differential suggests there is a huge opportunity to convert existing crypto owners – who are mostly passive holders – into active users. As major infrastructure improvements make brand new, compelling apps and consumer experiences possible, crypto holders who are lying dormant could become re-engaged on-chain users.”

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Will a16z Crypto Policy Lead Brian Quintenz be the new US CFTC Chair?

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As the Donald Trump administration looks to appoint the US Commodity Futures Trading Commission (CFTC) chairman, a16z Crypto policy lead Brian Quintenz emerged as the top contender. According to sources familiar with the matter, the Trump team has recently interviewed Quintenz for the top job at US CFTC.

Brian Quintenz Is the Top Choice for US CFTC Chair

As per a Bloomberg report, former Republican CFTC Commissioner Brian Quintenz was interviewed for the top position in the regulatory body. He is currently leading the crypto policy division at the digital asset wing of VC giant Andreessen Horowitz, a16z Crypto.

President-elect Donald Trump’s team has been actively conducting interviews for the US CFTC chair position, with an announcement likely in the coming days. Republican CFTC Commissioners Summer Mersinger and Caroline Pham have also been in the race for the same. Last month, reports suggested that Crypto Dad Chris Giancarlo could be the top boss at CFTC, however, he dispelled the rumors.

If chosen to lead CFTC, Brian Quintenz could bring a new perspective that bridges traditional finance (TradFi) and digital assets. During his previous tenure as CFTC Commissioner under the Donald Trump administration, Quintenz advocated for the agency to embrace innovative financial services, that included crypto derivatives and event contracts. In a crypto blog last month, co-authored with a16z, Quintenz shared his perspective on the election’s implications for the future of crypto. He wrote:

“While we’ll likely have greater flexibility to experiment, we can’t forget that the fundamental regulatory principles applicable to blockchain systems remain unchanged. There will still be valid scrutiny from regulators and policymakers of certain aspects of the industry irrespective of progress on new legislation or a re-calibrated regulatory environment”.

Since joining venture capital firm Andreessen Horowitz (a16z), Quintenz has continued championing progressive regulatory approaches for these industries. Quintenz’s extensive experience positions him to navigate the agency through significant policy changes under the Biden administration.

Furthermore, recent reports suggest that the Donald Trump administration is considering giving US CFTC the oversight of the $3 trillion crypto market. The proposal focuses on digital assets like Bitcoin and Ethereum, classified as commodities under current law. If implemented, it would grant the CFTC authority to oversee spot markets and exchanges.

US Crypto Policy to Undergo Key Changes

Crypto market analysts hope for a major US crypto policy shift under the Trump administration, with Brian Quintenz as CFTC Chair expected to play a key role. The appointment of pro-crypto Paul Atkins as the next US SEC chair already hints at this possibility and a conducive environment for crypto innovation.

The crypto industry has been demanding clarity on crypto policy from the US Congress and regulators on which products and services fall under the jurisdiction of the US CFTC or the US SEC. During his election campaign, Donald Trump pledged to make America the Crypto Capital of the world.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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