Global Crypto User Base Exceeds 500 Million in 2023, Crypto.com Report Reveals

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The global crypto user base has surpassed the half-billion mark, reaching an estimated 580 million people by the end of 2023. This significant milestone, highlighted in a comprehensive market sizing report by Crypto.com, marks a 34% increase from the previous year, indicating a robust and growing interest in cryptocurrency despite challenging market conditions.

Ethereum and Bitcoin Lead the Surge

The report details a notable rise in the ownership of major cryptocurrencies. Ethereum (ETH) users expanded from 89 million to 124 million, while Bitcoin (BTC) saw an increase from 222 million to 296 million users. This growth is attributed to several key factors, including technological advancements and broader market dynamics.

https://t.co/vCNztATkNg’s Market Sizing Report for 2023 is out.

The industry grew 35% to 580M users in 2023, adding 150M new users.

Get more insights on global crypto growth in 2023 👉https://t.co/2zTkTv71cK pic.twitter.com/axkfKHvAJk

— Crypto.com (@cryptocom) January 22, 2024

Factors Fueling the Crypto Adoption

Crypto.com’s analysis attributes this surge in adoption to various factors, including the Ethereum network’s Shanghai upgrade, which boosted network activity and ETH value. Additionally, the introduction of non-fungible token (NFT) functionality to the Bitcoin blockchain, through BRC-20 tokens and Bitcoin ordinals, significantly increased demand for Bitcoin block space.

The fourth quarter of 2023 witnessed a particular spike in Bitcoin adoption, coinciding with its price appreciation above $40,000. This was partly driven by mounting anticipation over the approval of several Bitcoin exchange-traded funds (ETFs) in the United States.

Diverse Cryptocurrency Portfolios

The report also sheds light on the diversity of cryptocurrency portfolios. It notes that 40% of Bitcoin owners also hold Ethereum, while 42% of cryptocurrency users do not possess either BTC or ETH. This diversity reflects the broadening appeal of cryptocurrencies beyond the major players.

Future Crypto Projections and Global Impact

Looking ahead, a previous report from Bitfinex in December 2023 predicts the global cryptocurrency user base could reach an estimated 950 million by the end of 2024. This projection underscores the rapidly expanding footprint of digital currencies and their potential to reshape the global financial landscape.

Crypto.com’s report, which includes data from 23 cryptocurrency exchanges, provides a comprehensive view of the evolving cryptocurrency market. It highlights the resilience and growth of the crypto sector amidst various macroeconomic challenges, including monetary tightening by Western central banks and geopolitical tensions.

As the cryptocurrency user base crosses this significant threshold, it signals a new era of digital currency adoption, promising transformative impacts on global finance and beyond.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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