According to a market assessment report from cryptocurrency exchange Crypto.com, by the end of 2023, more than half a billion people were users or owners of cryptocurrency.
The company estimates that the global number of cryptocurrency users will increase by 34% in 2023, rising from 432 million to 580 million.
Digging deeper into the statistics, Crypto.com shows that by the end of the year, the number of Ether (ETH) owners grew from 89 million users to 124 million, and the number of Bitcoin (BTC) owners increased from 222 million to 296 million.
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Crypto.com's on-chain market size estimates use its unique methodology to combine on-chain data with a set of parameters to calculate the number of global cryptocurrency owners.
The report notes that the 34% increase in the global cryptocurrency user base occurred amid prolonged, bearish market conditions.
“Cryptocurrency adoption reached new milestones in 2023 despite macroeconomic headwinds, namely further monetary tightening by Western central banks in an attempt to curb inflation, protracted kinetic conflict in Europe and a new one in the Middle East, and the long-term effects of the pandemic,” the excerpt notes. from the report.
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The paper adds that the Ethereum upgrade in Shanghai played a role in the increase in network activity and the subsequent increase in the value of ETH. Meanwhile, the impact of non-fungible tokens introduced to the Bitcoin blockchain in 2023 through the introduction of BRC-20 tokens and Bitcoin sequence numbers has also led to strong demand for Bitcoin block space.
Growing talk about the possible approval of filings for several Bitcoin exchange-traded funds in the United States has also led to an increase in Bitcoin acquisitions and wallets in 2023. As a result, the report highlights a sharp increase in BTC adoption in the fourth quarter of 2023.
Crypto.com includes data from 23 cryptocurrency exchanges when extracting on-chain data. The report also notes that 40% of Bitcoin holders also own ETH, while 42% of cryptocurrency users have neither BTC nor ETH in their portfolios.
A previous Bitfinex report from December 2023 predicted that the global cryptocurrency user base would increase to approximately 950 million by the end of 2024.