A new market sizing report by cryptocurrency exchange Crypto.com reveals that the number of cryptocurrency owners globally surged by 34% in 2023, moving from 432 million at the start of the year to 580 million in December.
Crypto.com uses a unique approach for its on-chain market sizing estimates. This methodology combines on-chain data with a variety of criteria to determine the total number of crypto owners globally.
Crypto.com Releases 2023 Market Sizing Report
Interestingly, the growth of crypto holders last year came amidst several macro-difficulties, such as the persisting effects of the pandemic and the monetary tightening measures taken by Western central banks to control inflation and hostilities in Europe and the Middle East.
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
As per the report, the number of users who owned ETH moved from 89 million to 124 million at the end of the year, while the number of people who owned Bitcoin increased from 222 million to 296 million during the same period.
Key Findings From the Report
The report notes that excitement surrounding the launch of Bitcoin exchange-traded funds (ETFs) and the launch of the Bitcoin Ordinals protocol were the primary drivers of BTC’s adoption growth. Institutional investors’ keen interest also played a role in the rise in the use of BTC. The interest of large players such as BlackRock and Fidelity in BTC led to the successful push for Bitcoin ETFs.
Source: Crypto.com
Bitcoin ordinals were one of the breakout innovations of the crypto space in 2023. They allowed the minting of non-fungible tokens (NFTs) on the Bitcoin network. As of this writing, the Bitcoin network has over 54 million Ordinals inscriptions, and the total inscription fees paid have surpassed 5,473 BTC (US$257 million). Interestingly, the report attributes Ethereum’s impressive growth to liquid staking following Ethereum’s Shanghai Upgrade.
Crypto.com’s report incorporates data from 23 cryptocurrency exchanges. The report also states that 42% of cryptocurrency users do not own any BTC or ETH in their portfolios, while 40% of Bitcoin owners also possess ETH.
Also, Q4-2023 was a significantly good period for both BTC and ETH, as the prices of both cryptocurrencies reached $44,000 and $2,400, respectively. Part of this price surge was fueled by the growing presence of investors in the market, anticipating Bitcoin and Ether ETFs.
Source: Crypto.com
Reacting to the report, Kris Marszalek, CEO of Crypto.com said: “This past year is another important foundational year for the entire crypto community. Once again, despite headwinds and challenges, the industry proved resilient and is well-positioned for mass adoption.”
Source: Crypto.com
How did Crypto.com Perform in 2023?
Crypto exchanges faced increased scrutiny from regulators across the world. Platforms such as Kraken, Coinbase, and Binance have faced multiple lawsuits from US authorities. However, Crypto.com had a significantly impressive year. The trading platform secured regulatory licenses and struck strategic partnerships.
The exchange secured its MVP Preparatory Licence and Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA) in 2023. It also secured a Major Payment Institution license from the Monetary Authority of Singapore (MAS). In addition, Crypto.com secured licenses from regulators in the UK, the Netherlands, and Spain.
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