W3A PRO | How Early Are We?: A Deep Dive Into The State of Web3
Leveraging On-chain Metrics to Determine Your Entry Point and Potential Investment Opportunities.
GM PRO DOers!
Ever wonder how many people are actually using web3 technology? 🤔
Not wallets, but actual humans… 🤓
Wouldn’t it be great to know how many people have migrated from the online world to the onchain world?
Or maybe take it a step further and try to understand how many people are using NFTs, Stablecoins, or DeFi. 👀
Whether you’re investing in web3 and want to understand how early you are or you’re building in web3 and want to understand your current TAM (total addressable market), understanding how many people are actually onchain (and what they are doing onchain) can be extremely useful.
That’s what we’re going to uncover in today's PRO report. 🚀
The most popular number that’s passed around in this space comes from the Crypto.com research report, which suggests that there are 425 Million crypto owners worldwide as of December 2022.
Up from 306 Million at the start of 2022. Some pretty solid growth during a bear market! 💪
This would mean that about 5% of the world currently owns crypto.
It’s larger than you might think, yet still signifies that we are extremely early, considering we still have another 7.6 Billion people or so to onboard! 🌊
But don’t let these numbers fool you, this is looking at crypto holders on and off chain, the bulk of which are on centralized exchanges (offchain).
A large % of these crypto owners are simply holding onto digital assets to speculate and have never actually used a web3 wallet, interacted with dapps, or had any onchain activity.
These are the aunts and uncles that bought crypto on Coinbase/Binance because you shilled it to them at the Christmas family gathering. 😏
The purpose of this report is to try to understand how many individuals are currently active onchain.
Now, this is not an easy number to determine since blockchain is a permissionless technology that doesn’t require identifying who you are or that you are a unique person. Onchain, anyone can have any number of wallets, and in fact, most people have many.
I, for example, have at least 10 wallets and 3 or 4 I’m active with. This makes understanding the human numbers onchain extremely difficult. 🤷
That said, let’s go down the rabbit hole and see what we can uncover anyway! ⏬