Over 580 Million People Adopt Crypto in 2023
In a report from Crypto.com revealing a surge in crypto adoption, over half a billion people were seen adapting to the digital asset realm in 2023.
The Rise of Digital Asset Users
The report revealed that the number of digital asset users increased by 34% last year. The number grew from 432 million people in January 2023 to 580 million by the end of the year, totaling an increase of about 148 million new users.
The Crypto.com report reveals that Bitcoin and Ethereum are the top blockchain-based assets in terms of ownership and use. Bitcoin’s ownership grew by 33% in 2023, reaching 296 million people, which is half of the global Bitcoin community. Ethereum saw a more significant growth rate of 39%, with its ownership increasing from 89 million to 124 million, making up 21% of global crypto owners. This highlights Ethereum’s rising popularity, especially for its smart contract capabilities.
The Crypto.com report is significant in light of the crypto industry’s challenges. In 2022, the industry lost over 50% of its $2.9 trillion value. 2023 continued to be turbulent, impacted by global inflation measures.
The massive adoption of Bitcoin was attributed to several factors. Growing confidence in the industry was boosted by the SEC’s approval of a Bitcoin ETF. Additionally, the introduction of non-fungible tokens (NFTs) on the Bitcoin network through BRC-20 token standards and Bitcoin Ordinals helped increase user interest. Institutional investment in Bitcoin also played a role in expanding its ownership base.
Ethereum’s growth could be credited to the impact of the Shanghai upgrade as reported by the research team. This upgrade allowed for the withdrawal of staked Ether (ETH) from the Beacon Chain, a significant step in Ethereum’s transition to a proof-of-stake (PoS) network.
Centralized Platforms
The Crypto.com report highlights that despite the decentralized nature of the crypto ecosystem, a significant number of new crypto owners bought Bitcoin and Ethereum through centralized exchanges. Over 20 crypto exchanges, including well-known ones like Binance, Crypto.com, Bitfinex, Bittrex, Gemini, and others were found to have been preferred exchanges. This trend underscores the pivotal role of centralized platforms in the expansion of the cryptocurrency market.
The data reveals that 40.9% of Bitcoin owners also have Ethereum (ETH) in their wallets. Interestingly, 42% of the people surveyed own digital assets other than Bitcoin and Ethereum. The report also highlights the high adoption rate of crypto exchanges, with 89% of crypto investors using these platforms. This indicates a strong preference for Web2-style trading platforms among Web3 investors.
Conclusion
In the evolving world of cryptocurrencies, over 580 million people are now engaged with digital assets, with Bitcoin and Ethereum leading the way. These two cryptocurrencies are guiding a diverse community through the possibilities of blockchain technology. The crucial role of centralized platforms in encouraging people to adopt cryptocurrencies has been highlighted. As the interest in this space grows, the crypto community continues to expand, offering new opportunities and inviting more people to explore the digital landscape.
Disclaimer: The content of this article is the opinion of the writer. Nothing in this article is intended to constitute financial advice. The content of this article is intended for entertainment and educational purposes only. Investing in cryptocurrency carries a high degree of risk. Capital is at risk, and returns are never guaranteed. You should always do your own research.
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