Crypto Asset Adoption Surges with 580 Million Users in 2023
A recent report by Crypto.com reveals that the number of digital asset users and owners reached 580 million in 2023, marking a 34% increase from the previous year.
Bitcoin and Ethereum emerged as the most popular blockchain-based assets, with Bitcoin ownership growing by 33% to reach 296 million people globally. Ethereum saw an even greater increase of 39%, with 124 million owners worldwide.
Factors Driving Crypto Adoption
The Crypto.com Research and Insights team attributes the surge in crypto adoption to various factors. The growing confidence surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) has generated significant interest in the industry.
The introduction of non-fungible token (NFT) capability on the Bitcoin network and institutional interest in BTC also contributed to the expansion of the crypto user base.
Ethereum’s adoption was boosted by the singular Shanghai upgrade, which allowed for staked Ether (ETH) withdrawals from the Beacon Chain during its transition to a proof-of-stake (PoS) network.
Centralized Exchanges Play a Vital Role
Although the crypto ecosystem operates on decentralization principles, centralized trading platforms have played a crucial role in facilitating crypto adoption. The Crypto.com report highlights that a significant number of new crypto owners acquired Bitcoin and Ethereum through centralized exchanges.
An analysis of on-chain market data from over 20 exchanges revealed that 40.9% of Bitcoin owners also held ETH, while 42% owned other digital assets. The high adoption ratio for crypto exchanges, at 89%, underscores their appeal to Web3 investors.
Hot Take: Crypto Adoption on the Rise, Driven by Key Factors
The surge in crypto asset adoption, with 580 million users in 2023, demonstrates the growing interest and confidence in digital assets. The popularity of Bitcoin and Ethereum continues to rise, driven by factors such as the potential approval of a Bitcoin ETF and the introduction of NFT capabilities.
Furthermore, centralized exchanges remain pivotal in facilitating crypto adoption, as they provide a user-friendly onboarding experience for newcomers. As more individuals recognize the potential of cryptocurrencies, the global user base is expected to continue expanding, driving further growth and innovation within the crypto industry.
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