Marc Andreessen, a16z cofounder (Credit: Joi / Wikimedia Commons)
Less than a month after launching a new , Andreessen Horowitz (a16z) is predicting that “high-quality projects” may drive a new growth cycle in the industry.
The famous venture capital fund, which has a substantial crypto portfolio, said in a it anticipated some of the better projects created in the wake of the 2017 initial coin offering (ICO) boom to contribute to a new industry boom period.
Pulling from “anecdotal” evidence and data going back 10 years, a16z says “price innovation cycles” – including those that peaked in 2011, 2013 and 2017 – begin with price increases that attract new people with bright ideas who end up creating promising companies and projects that benefit the space overall.
“A key feature of crypto cycles is that each one plants seeds which later grow and drive the next cycle,” reads the blog post. These new projects ultimately “inspire more people, eventually culminating in the next cycle.” Ethereum was created in the 2013 cycle, for example, and that became the foundation for the ICOs that drove the next cycle in 2017.
The VC fund forecasts: “The 2017 cycle spawned dozens of exciting projects in a wide range of areas including payments, finance, games, infrastructure, and web apps. Many of these projects are launching in the near future, possibly driving a fourth crypto cycle.”