Crypto.com Research Team Releases “2023 Cryptocurrency User Scale” Report
As of December last year, the number of global users holding cryptocurrency has increased to 580 million, with an annual growth rate of 34%.
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Global User Count Reaches 580 Million
BTC Holders: 296 million
ETH Holders: 124 million
Steady Growth in the Cryptocurrency Market
Despite macro obstacles, including currency tightening policies implemented by central banks to curb inflation, dynamic conflicts in Europe, and a new round of economic crises, the adoption rate of cryptocurrencies continues to grow.
In 2023, the global number of cryptocurrency holders grew by 34%, from 432 million at the beginning of the year to 580 million at the end.
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Chart of Changes in the Number of Cryptocurrency Users in 2023
The growth momentum mainly includes the Ethereum Shanghai Upgrade in April, the Ordinals protocol and BRC-20 craze starting in May, and the stimulation from the Bitcoin spot ETF at the end of the year.
The number of Bitcoin holders increased from 222 million at the beginning of 2023 to 296 million, with an annual growth rate of 30%, accounting for approximately 51% of the global cryptocurrency holders.
Chart of Changes in the Number of BTC Holders in 2023
The main catalyst behind the growth of Bitcoin holders is the craze brought by the Ordinals protocol and BRC-20 in May, attracting many users to join the Bitcoin ecosystem.
(Plain language explanation of the types of Bitcoin ecosystem assets, such as ARC-20, SRC-20, and the technical differences behind them)
Another factor is the development of Bitcoin spot ETF, which has attracted strong interest from institutional investors and increased the opportunity for more traditional financial users to understand and engage with Bitcoin.
(A guide to hidden costs of Bitcoin spot ETF, an overview of BTC investment methods and fees)
The number of Ether holders increased from 89 million in January to 124 million in 2023, a total growth of 39%, accounting for approximately 21% of the global cryptocurrency holders.
Chart of Changes in the Number of ETH Holders in 2023
The growth of Ether holders is mainly driven by the liquidity staking industry after the Ethereum Shanghai Upgrade, which allows for the withdrawal of staked ETH and has gained more trust from the market.
(Shanghai Upgrade data: Ethereum unlocks $150 million worth of ETH daily, staking ratio drops by 4%, still outperforming Bitcoin)
Additionally, the author believes that the growth of Ether holders at the end of the year mainly comes from the maturity of Layer 2 and modular narratives, as well as the launch of various foundational network projects.
(Viewpoint| Competition in Data Availability Layer (DA) Will Present Diverse Development)
The cryptocurrency market has achieved rapid growth for consecutive years, and although the growth rate in 2023 has slowed down, it still achieved a growth rate of 34%.
It can be observed that both Bitcoin and Ether growth are primarily driven by narratives. In addition to reflecting the rapid changes and innovations in the cryptocurrency market, they also demonstrate unique industry characteristics that come with speculation and rapid growth risks.
With the maturity of infrastructure, progressive regulations, and increased societal acceptance, the cryptocurrency market and even Web3 applications are expected to gain mass adoption more rapidly in the future.
2023 Report
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Further Reading
Research by China Academy of Information and Communications Technology | Chinese Local Governments Drive the Flourishing Development of Cryptocurrency Technology
Research | Infrastructure Attracts Attention, 2023 Cryptocurrency Financing Consolidation Report