Web3 fundamentals exhibit strong growth, with over 1.3 billion addresses across major computational chains and daily active users escalating from 4.5 million to 7.5 million. The DeFi sector demonstrates vibrant activity with stablecoins surpassing $150 billion and Ethena's synthetic dollar offerings yielding between 30-60%, illustrating the sector's burgeoning appeal. Notably, public decentralized AI entities are beating both Western and Eastern public companies in performance in our AI index.

Generative Ventures is excited to announce our strategic investment in Peaq's $15M series A round. Peaq is a Layer 1 aggregating DePINs, providing infrastructure for machine identities, financial capabilities, and eventually aggregated ecosystem demand generation. This investment, which we co-led with Borderless Capital, reflects our conviction in the emergent Economy of Things (EoT) and the Decentralized Physical Infrastructure Networks (DePINs) upon which it is built.

There will be only more robots, and Web3 is the correct economic and financial venue for their emerging machine economy. This macro thesis was compelling enough to get started, but there is reality on the ground and its patterns are starting to become more clear. Today, we want to dive more deeply into how this is already happening and describe the AI and DePIN trends driving the sector forward.

BlackRock and other asset managers are marching their way to a Bitcoin ETF. The SEC is losing ground in the courts. Interest rates have potentially peaked and inflation has abated. There is hope that the central banks have stopped raising, and that the next leg of the exercise is to land softly without too much unemployment. While there is plenty to be concerned about over the next year — housing markets, valuations relative to earnings, China, lobal war, the deficit, Binance — are there things we can relax about?

We are entering the age of a new machine economy. Humans, software machines, and our ever-evolving hybrids are connected through fintech financial networks and anchored to blockchains. Digital production, powered and accelerated by generative AI, will lead to the creation of countless digital objects — from art and code to goods and services — that form the backbone of economic supply and demand. Crypto has built the money, DeFi has built the market venues, and NFTs have built the commercial packaging for this machine economy to flourish.