In a remarkable development for the digital currency world, over 500 million individuals had adopted cryptocurrency by the end of 2023, as revealed in a comprehensive report by Crypto.com. This surge represents a 34% increase within a year, pushing the user base from 432 million to a staggering 580 million worldwide.
Delving into specifics, the report by the renowned cryptocurrency exchange highlights significant rises in the ownership of major cryptocurrencies. Ethereum (ETH) users expanded from 89 million to 124 million, while Bitcoin (BTC) saw its user base grow from 222 million to nearly 296 million by year-end.
Crypto.com’s analysis employs a unique blend of on-chain data and various parameters to accurately estimate the number of cryptocurrency owners globally. This growth in crypto users is particularly noteworthy given the prolonged bearish market conditions throughout the year.
The report cites multiple factors contributing to this uptrend. Notably, Ethereum’s Shanghai upgrade significantly boosted network activity and Ethereum’s value. Additionally, the introduction of non-fungible token (NFT) capabilities to the Bitcoin blockchain, through BRC-20 tokens and Bitcoin Ordinals, spurred increased demand.
The potential approval of Bitcoin ETFs in the United States also played a critical role, leading to heightened Bitcoin acquisitions and wallet creations, especially in the fourth quarter of 2023. Intriguingly, the report points out that while 40% of Bitcoin owners also possess Ethereum, 42% of cryptocurrency users have neither BTC nor ETH in their portfolios.
Crypto.com’s report, encompassing data from 23 cryptocurrency exchanges, provides an insightful glimpse into the evolving landscape of digital currencies. This surge in crypto adoption aligns with previous forecasts, such as Bitfinex’s December 2023 prediction of the global cryptocurrency user base reaching an estimated 950 million by the end of 2024. This upward trend underscores the burgeoning interest and confidence in cryptocurrencies across the globe.