Report: Global Crypto Ownership Surges with 580 Million Users Embracing Digital Assets by 2023
According to the Crypto Sizing Report released by Crypto.com, the number of global cryptocurrency owners saw a significant increase of 34% in 2023, rising from 432 million in January to 580 million in December. This growth can be attributed to several key factors.
One of the main catalysts behind the adoption of Bitcoin (BTC) was the development of Bitcoin exchange-traded funds (ETFs) and the introduction of the Bitcoin Ordinals protocol. This protocol allowed for the minting of non-fungible tokens (NFTs) and fungible tokens on the Bitcoin network. Additionally, strong interest from institutional investors played a significant role in BTC’s adoption growth.
The adoption of Ethereum (ETH) was primarily driven by liquid staking after the implementation of Ethereum’s Shanghai Upgrade. This upgrade allowed staked ETH to be withdrawn after the transition to the Proof of Stake (PoS) blockchain.
In terms of specific numbers, the report states that the total number of cryptocurrency owners worldwide grew by 34% throughout the year. Bitcoin owners increased by 33%, from 222 million in January to 296 million in December. Similarly, Ethereum owners rose by 39%, from 89 million to 124 million during the same period. The months of April and May saw particularly strong growth rates of 5.1% and 6.7%, respectively.
The exceptional growth of Bitcoin in April and May can be attributed to the momentum of Bitcoin Ordinals, which allowed for the minting of NFTs on the Bitcoin network. Additionally, the emergence of BRC-20 tokens and high interest from institutional investors contributed to BTC’s notable growth in the fourth quarter, spurred by the development of BTC ETFs.
On the other hand, the adoption of Ethereum was closely tied to the popularity of liquid staking, especially after the implementation of Ethereum’s Shanghai Upgrade. The growth in ETH adoption was in line with the increase in staked ETH.
In conclusion, both BTC and ETH saw a significant rise in adoption in 2023, driven by developments in the Bitcoin and Ether ETFs space. During this period, both cryptocurrencies experienced a surge in price, briefly reaching levels of US$44,000 and US$2,400, respectively.
The remarkable increase in crypto ownership, reaching 580 million users by the end of 2023, reflects a transformative shift in the financial landscape. The cryptocurrency revolution continues to break barriers and attract individuals from diverse backgrounds, promoting a more inclusive and decentralized approach to finance.
As digital assets gain wider acceptance, the influence and adaptability of the cryptocurrency ecosystem will continue to grow. The cryptocurrency industry is poised for further growth, innovation, and a lasting impact on the global financial system.