Global crypto adoption has continued to gain traction, with individuals and institutional players gaining exposure to various digital assets as investors or traders. According to the latest research from Crypto.com, there have been an additional 550 million crypto holders in the past 12 months as the industry continues to experience a meteoric expansion.
Global Boom In Crypto Adoption
As of the end of 2023, the global crypto market has recorded an astounding boom, with over 580 million active participants. A study revealed a 34% increase from the previous year’s record of 432 million.
These insights come from a comprehensive market assessment research published by the prominent crypto exchange. Crypto.com. The analysis revealed a significant spike in ownership of several crypto assets. Ether (ETH) ownership spike was the highest among other crypto assets, rising from 89 million to 124 million. Similarly, Bitcoin (BTC) ownership increased from 222 million to 296 million within the period under review.
Challenges And The Crypto Space Growth
Crypto.com used a unique method to determine its latest results. According to the analysis, a 36% increase in people utilizing cryptocurrencies worldwide in 2023 occurred despite poor market conditions.
Despite the macroeconomic challenges, cryptocurrency adoption reached unprecedented levels this past year. The study cited difficulties such as the Western central banks’ continuous efforts to control inflation through monetary tightening and the unending wars in Europe and the Middle East.
Others include the long-term effects of the global pandemic. As the research digs deeper into the mechanics of the cryptocurrency ecosystem, it shows that the deployment of the Shanghai update is responsible for the highest spike in ETH adoption.
Furthermore, the study sheds insight into the impact of implementing nonfungible token functionality on the Bitcoin network by 2023 through the implementation of BRC-20 tokens and Bitcoin Ordinals.
According to the study, this infusion of new capabilities was critical in driving strong demand for Bitcoin block space, contributing to the cryptocurrency ecosystem’s viability and growth in challenging market conditions.
Spot Bitcoin ETF-Inspired Surge
In addition, the anticipated approval of several Bitcoin exchange-traded funds (ETFs) in the United States was a crucial motivator for the surge in Bitcoin acquisitions and wallet extensions in 2023. As detailed in the report, this heightened interest and engagement led to a significant increase in Bitcoin adoption in the fourth quarter of the year.
Furthermore, the Crypto.com on-chain study, based on data from 23 crypto exchanges, provides a complete view of the developing events behind the broader adoption rate. Interestingly, the research discloses that 40% of Bitcoin holders also hold ETH in their portfolios, demonstrating the interconnectedness of cryptocurrency ownership.
Strangely, it observes that 42% of crypto users do not possess any Bitcoin or Ethereum in their investment portfolios, highlighting the different investment techniques of crypto holders. Nevertheless, Bitfinex’s December 2023 forecast estimates that by the end of 2024, the global crypto community will have grown to 950 million members.