Crypto.com estimates the number of crypto users surged to half a billion in 2023

According to a recent study by Crypto.com, the global cryptocurrency community expanded significantly in 2023, reaching an estimated 580 million individuals. This report marks a significant milestone, indicating that the number of individuals engaging with cryptocurrencies has crossed the half-billion threshold for the first time.

Crypto.com's findings show a substantial 34% increase in cryptocurrency users worldwide, rising from 432 million at the beginning of the year to 580 million by year-end. Specifically, the report highlights notable growth in the ownership of major cryptocurrencies, with Ether's user base growing from 89 million to 124 million, and Bitcoin's user base expanding from 222 million to 296 million individuals within the same period.

The growth in the cryptocurrency user base occurred against a backdrop of challenging market conditions, including bearish trends. Despite these adversities, the report underscores the resilience of cryptocurrency adoption, attributing the expansion to several factors, including the Ethereum network's Shanghai upgrade and the introduction of NFT functionality to the Bitcoin network through BRC-20 tokens and Bitcoin Ordinals. These developments spurred increased activity and demand within the respective networks.

Furthermore, the anticipation surrounding the potential approval of Bitcoin ETFs in the United States contributed to a heightened interest in Bitcoin, particularly in the fourth quarter of 2023, which saw a notable uptick in Bitcoin acquisitions and wallet creations.

The report's methodology includes analyzing on-chain data from 23 cryptocurrency exchanges and reveals that 40% of Bitcoin owners also possess Ether, while a significant 42% of cryptocurrency users do not hold either Bitcoin or Ether in their portfolios.

Looking ahead, a previous analysis by Bitfinex projected that the global cryptocurrency user base could reach as many as 950 million people by the end of 2024, suggesting continued growth and adoption in the coming year.

Cointelegraph