The question of how many people use cryptocurrency globally has been a topic of interest, and a recent market sizing report by Crypto.com reveals a significant increase in the number of crypto owners. In 2023, cryptocurrency ownership grew by 34%, rising from 432 million at the beginning of the year to 580 million by December.
Crypto.com adopted a novel methodology for estimating the global number of crypto owners, combining on-chain data with various criteria. This innovative approach provided a nuanced understanding of the evolving landscape of cryptocurrency adoption.
The increase in crypto ownership occurred against a backdrop of macro challenges, including the lingering effects of the pandemic and monetary tightening measures implemented by Western central banks to manage inflation and geopolitical tensions in Europe and the Middle East.
The report highlights key trends in crypto ownership, noting that Ethereum (ETH) ownership rose from 89 million to 124 million, while Bitcoin ownership increased from 222 million to 296 million by year’s end, underlining the expanding user base and growing interest in leading cryptocurrencies.
The rise in Bitcoin adoption is attributed to the excitement generated by the launch of Bitcoin exchange-traded funds (ETFs) and the introduction of the Bitcoin Ordinals protocol. Institutional investors, particularly major players like BlackRock and Fidelity, played a significant role in the prominence of Bitcoin ETFs. The report also ties Ethereum’s growth to the impact of liquid staking following Ethereum’s Shanghai Upgrade.