A recent study by Andreessen Horowitz (a16z), a leading venture capital firm in the cryptocurrency space, has revealed that the number of active crypto users may be significantly higher than previously thought. This analysis presents a challenge, as many individuals hold multiple addresses for reasons such as security, leading to difficulties in accurately counting distinct users.
How Do Researchers Count Crypto Users?
To arrive at their estimates, the a16z team filtered out addresses tied to distribution contracts and those with negligible balances that were highly active in transactions during a limited timeframe. This process aimed to minimize double-counting, acknowledging that users may operate several addresses across different networks and exchanges.
Can We Trust the User Estimates?
Eddie Lazzarin and Daren Matsuoka utilized both on-chain and off-chain data to make informed projections. They emphasized the disparity between human users and automated bots, noting that while the former can only manage a certain volume of transactions, bots can handle significantly more.
The findings suggest that there are currently between 30 to 60 million genuine crypto users each month, which is about 14-27% of the 220 million active addresses recorded in September. Interestingly, this represents just 5-10% of the 617 million crypto owners cited by Cryptocom in June, indicating a massive untapped market.
- 30-60 million monthly active users identified.
- This translates to 14-27% of monthly active addresses.
- Disparity signals opportunities for user engagement and growth.
As the cryptocurrency landscape evolves with innovative applications and enhanced infrastructure, there is a growing likelihood that many passive investors will transition into active users, marking a pivotal point for the industry’s expansion.