The global crypto user base will exceed half a billion by 2023

By the end of 2023, more than half a billion people will be users or owners of cryptocurrencies, according to a market size report by cryptocurrency exchange Crypto.com.

The company estimates that the population will grow from 432 million to 580 million people by 2023, an increase of 34 percent.

Delving deeper into the statistics, Crypto.com reports that Ether (ETH) ownership rose from 89 million users to 124 million, while Bitcoin (BTC) ownership rose from 222 million to 296 million at the end of the year.

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Crypto.com's on-chain market size estimates use a unique method to calculate the number of global cryptocurrency holders by combining on-chain data with a mix of parameters.

The report notes that the 34% increase in the global cryptocurrency user base came amid long, bearish market conditions.

In the year “Crypto adoption will hit new milestones in 2023, despite macro headwinds, namely further monetary tightening by Western central banks to tackle inflation, prolonged kinetic conflict in Europe and renewed conflict in the Middle East, and the long-term effects of the pandemic,” excerpted from the report.

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The document added that Ethereum's Shanghai update played a role in the increase in network activity and the rally in ETH's price. Meanwhile, The impact of irreversible tokenization brought to the Bitcoin blockchain through the arrival of BRC-20 tokens and Bitcoin ordinals in 2023 has led to a huge demand for Bitcoin block space.

Talk of the eventual approval of several Bitcoin exchanges in the United States has led to an increase in Bitcoin purchases and wallets in 2023. The report predicts an increase in BTC adoption in Q4 2023 due to increasing adoption.

Crypto.com includes data from 23 crypto exchanges in its on-chain data mining. The report also revealed that 40% of Bitcoin owners own ETH, while 42% of cryptocurrency users have no BTC or ETH in their portfolios.

A previous report from Bitfinex in December 2023 predicted that the global cryptocurrency user base would increase to 950 million people by the end of 2024.

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