Home / News / Crypto / News / Crypto Adoption Soars: 580 Million Worldwide Now Own Digital Assets
News
3 min read

Crypto Adoption Soars: 580 Million Worldwide Now Own Digital Assets

Last Updated January 28, 2024 9:12 AM
Teuta Franjkovic
Last Updated January 28, 2024 9:12 AM

Key Takeaways

  • Global cryptocurrency ownership increased by 34% in 2023, rising from 432 million to 580 million.
  • Bitcoin ownership increased by 33%, rising from 222 million to 296 million.
  • Ethereum ownership increased by 39%, rising from 89 million to 124 million.

A recent Crypto.com report  revealed a significant 34% increase in global cryptocurrency ownership in 2023, with the number of crypto users reaching 580 million by December.

Specifically, Bitcoin ownership experienced a 33% rise, while Ethereum’s growth was even more pronounced at 39%.

Crypto Ownership Surges 34% Amid Economic Turmoil

Crypto.com, in its annual Crypto Market Sizing Report , highlighted a substantial increase in the global number of cryptocurrency users in 2023.

This growth occurred despite various macroeconomic challenges, such as monetary tightening by Western central banks in response to inflation, persistent conflicts in Europe and the Middle East, and the continuing effects of the pandemic.

The report states :

“Global cryptocurrency owners increased by 34% in 2023, rising from 432 million in January to 580 million in December.”

The report from Crypto.com specifies  remarkable growth in the ownership of major cryptocurrencies in 2023. Bitcoin (BTC) owners increased by 33%, rising from 222 million in January to 296 million by December, representing 51% of global cryptocurrency owners. Meanwhile, Ethereum (ETH) saw an even more significant rise of 39%, growing from 89 million owners at the start of the year to 124 million by the end, accounting for 21% of the global total.

Number of crypto owners
Credit: Crypto.com

The report  attributes Bitcoin’s adoption growth primarily to Bitcoin exchange-traded funds (ETFs) and the introduction of the Bitcoin Ordinals protocol. This protocol has enabled the minting of both non-fungible tokens (NFTs) and fungible tokens directly on the Bitcoin network, marking a significant advancement in the cryptocurrency’s capabilities and appeal.

It says :

“Strong interest from institutional investors also contributed to the increase in BTC’s adoption.”

Ethereum Adoption Boosted by Liquid Staking Post-Shanghai Upgrade

The report highlights Ethereum’s significant adoption growth , attributing it largely to the advancements in liquid staking following the Shanghai Upgrade. This upgrade enabled the withdrawals of staked ETH, marking Ethereum’s transition to a Proof of Stake (PoS) blockchain. This development has been a key factor in driving Ethereum’s increased adoption.

The prices of BTC and ETH saw a substantial rise, with BTC momentarily hitting the $44,000 mark and ETH reaching around $2,400. Concurrently, there was a significant surge in popularity for BRC-20 tokens and inscriptions, drawing in a wide variety of investors and crypto enthusiasts.

Additionally, the U.S. Securities and Exchange Commission (SEC) gave the green light to 11 spot Bitcoin ETFs on January 10, including a noteworthy conversion of Grayscale’s Bitcoin trust (GBTC) into an ETF. Since its launch, Grayscale has experienced substantial outflows, in contrast to several other spot bitcoin ETFs.

Notably, Blackrock’s Ishares Bitcoin Trust has attracted significant inflows, indicating a shifting landscape in investment preferences within the crypto ETF market.

Was this Article helpful? Yes No