Over Half a Billion People Turned to Cryptocurrency Amid Global Challenges in 2023: Crypto.com Report
Summary:
Crypto.com reported that more than 500 million people became engaged with or owned cryptocurrency by the end of 2023. The number of global cryptocurrency users rose by 34%, from 432 million to 580 million. Ownership of Ether (ETH) and Bitcoin (BTC) also increased significantly. Despite global upheavals and bearish market conditions, crypto adoption rates continued to rise. Factors that contributed to this growth include Ethereum’s Shanghai upgrade and the roll-out of non-fungible token functionality to Bitcoin through BRC-20 tokens. Market speculation about the approval of Bitcoin exchange-traded funds in the US also boosted Bitcoin acquisition and wallets in 2023.
By the culmination of 2023, Crypto.com, a cryptocurrency exchange, shared in a report that there was an increase of more than 500 million individuals who engaged with or owned cryptocurrency. They announced that the global user base saw a 34% expansion in 2023, rising from 432 million to a total of 580 million individuals. Further insights from Crypto.com stated that Ether (ETH) owners expanded from 89 million to 124 million and Bitcoin (BTC) ownership shot up from 222 million to 296 million people by year-end.
Crypto.com's market sizing estimates are backed by their distinctive methodology which effectively combines on-chain data with different parameters to estimate the growing global pool of cryptocurrency owners.
The survey emphasized that despite enduring bearish market conditions, the global cryptocurrency user base still managed to increase by 34%.
New benchmarks in crypto adoption were achieved in 2023 despite major global disturbances such as Western central banks' attempt to control inflation, unrest in Europe and the Middle East, and the ongoing effects of the pandemic stated the report.
Crypto.com further noted that factors such as Ethereum’s Shanghai upgrade contributed to a surge in network’s activity and an increase in ETH value. Furthermore, the arrival of BRC-20 tokens and Bitcoin ordinals which added non-fungible token functionality to Bitcoin, boosted the demand for Bitcoin block space.
Arguments regarding the eventual authorization of several Bitcoin exchange-traded funds applications in the U.S. also helped to drive up Bitcoin acquisitions and wallets in 2023, leading to a surge of BTC adoption in the fourth quarter, thereby aiding BTC’s price appreciation to exceed $40,000.
Crypto.com sourced data from 23 cryptocurrency exchanges, and the report also pointed out that out of all Bitcoin owners, 40% also held ETH, and 42% of the cryptocurrency users did not own BTC or ETH. Meanwhile, Bitfinex, in a December 2023 report, suggested an estimated rise in global cryptocurrency users to 950 million by the conclusion of 2024.
Published At
1/22/2024 4:03:54 PM
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