On January 22, 2024, Crypto.com unveiled its annual Crypto Market Sizing Report, revealing a remarkable 34% surge in global cryptocurrency owners throughout 2023. The numbers escalated from 432 million in January 2023 to an impressive 580 million by December 2023.
This notable change in the cryptocurrency market is chiefly driven by the upward trajectory of Bitcoin (BTC) and Ethereum (ETH).
A newly released report from Crypto.com discloses that Bitcoin experienced a 33% expansion in its user base, escalating from 222 million in January to 296 million by December. Notably, this upswing represents 51% of the worldwide crypto ownership.
The notable surge in Bitcoin’s adoption can be credited to significant advancements. Chief among them were the introduction of Bitcoin ETFs (exchange-traded funds) and the Bitcoin Ordinals protocol. The latter innovation empowered the creation of both non-fungible tokens (NFTs) and fungible tokens directly on the Bitcoin network.
Ethereum, the second-largest cryptocurrency by market capitalization, closely followed suit in adoption. Its ownership experienced a 39% increase, growing from 89 million to 124 million within the same timeframe, constituting 21% of the global crypto ownership. The primary catalyst for this growth was the Ethereum Shanghai Upgrade.
This upgrade facilitated liquid staking and permitted the withdrawal of staked ETH after the transition to a Proof-of-Stake (PoS) blockchain.
Key Catalysts for the Widening Acceptance in the Mainstream
An examination of crypto trends in 2023 indicates notable upswings in April and May, marked by growth rates of 5.1% and 6.7% correspondingly. This surge aligned with the Ethereum Shanghai Upgrade implemented on April 12, 2023.The increase in ETH adoption closely mirrored the fluctuations in staked ETH. Liquid staking remains a prevalent trend following the Shanghai Upgrade. Notably, both BTC and ETH experienced substantial growth in adoption during the fourth quarter of 2023, driven by advancements in Bitcoin and Ether ETFs.
Moreover, Bitcoin garnered significant attention during this period, attributed in part to the increasing prominence of Bitcoin Ordinals. Over 54 million inscriptions were recorded on the Bitcoin network, generating fees surpassing 5,473 BTC, equivalent to around $257 million.
The introduction of BRC-20 tokens was a pivotal factor contributing to Bitcoin’s growth in the fourth quarter. Institutional investor interest further fueled this surge, coinciding with the launch of Bitcoin ETFs.
Throughout this timeframe, both BTC and ETH witnessed notable price increases, briefly reaching heights of $44,000 and $2,400, respectively.The distribution of cryptocurrency holders showed a consistent pattern, with the percentages of BTC and ETH holders holding steady. The overall increase in the number of crypto owners is responsible for this trend. Ethereum’s adoption rate saw a rise of 0.7%, while Bitcoin experienced a marginal decline of 0.4% throughout the year.
The remarkable surge in cryptocurrency ownership signals a wider movement towards digital assets, drawing in a diverse array of investors and enthusiasts on a global scale.
