The year 2023 ended with a significant increase in the number of new individual entrants into the cryptocurrency market or industry owing at least one crypto asset. As reported by Crypto.com, the global ownership of crypto assets surged by 34%, reaching a remarkable 580 million users by the year’s end.
According to the report, this growth was not consistent throughout the year, with notable peaks in April and May, aligning with the Ethereum Shanghai Upgrade on April 12, 2023.
Crypto.com is on a mission to expedite the world’s transition to cryptocurrency. With their user-friendly app, users can easily buy, sell, and store over 250 cryptocurrencies, including popular options like Bitcoin and Ethereum. Holding their native cryptocurrency, CRO, comes with trading fee discounts. Despite amassing over 80 million users, the platform has encountered concerns regarding customer support.
Bitcoin and Ethereum are leading the way in terms of adoption
Bitcoin (BTC) and Ethereum (ETH) emerged as the frontrunners in driving adoption growth during this period. BTC owners recorded a remarkable 33% increase, soaring from 222 million in January to a staggering 296 million by December. Similarly, ETH owners experienced a 39% surge, rising from 89 million to 124 million over the same period.
Per the report, the increase in Bitcoin ownership in April and May was driven by the momentum of Bitcoin Ordinals, a platform for creating NFTs on the Bitcoin network. With over 54 million Ordinals inscriptions, the total fees surpassed 5,473 BTC (about US$257 million).
In the fourth quarter, BTC’s growth was fueled by the introduction of BRC-20 tokens, increased interest from institutional investors, and the development of Bitcoin Exchange-Traded Funds (ETFs).
For Ethereum, liquid staking was a significant trend in 2023, particularly after the Shanghai Upgrade. The growth in ETH adoption aligned with changes in staked ETH during this period.
Additionally, in the last quarter of 2023, both BTC and ETH saw increased adoption due to anticipation of developments in Bitcoin and Ether ETFs. Prices for BTC and ETH surged significantly, reaching levels of US$44,000 and US$2,400, respectively. The appeal of BRC-20 tokens and inscriptions attracted a diverse range of investors.
Analysis of cryptocurrency ownership showed that BTC and ETH maintained their market shares despite an increase in entrants in the crypto space. ETH’s adoption rate increased by 0.7%, while Bitcoin saw a slight decrease of 0.4% over the year. These trends reflect the dynamic nature of the evolving crypto market and the growing interest among a diverse group of investors.