Bitcoin and Ethereum lead a 34% surge in global cryptocurrency adoption, signaling increased trust in digital assets.
The year 2023 has marked a significant milestone in the world of digital currencies, with cryptocurrency usage experiencing a remarkable 34% increase globally. This surge has pushed the number of cryptocurrency users from 432 million to an impressive 580 million. Two major players, Bitcoin and Ethereum, have been at the forefront of this digital revolution, acting as catalysts for the widespread adoption of cryptocurrencies.
Bitcoin, the original cryptocurrency, has seen its user base grow by 33%, reaching nearly 300 million users. This growth has been fueled by a combination of institutional interest and the launch of spot Bitcoin Exchange-Traded Funds (ETFs), which have provided a more accessible avenue for investors to tap into the crypto market. Additionally, the Bitcoin network's adoption of inscriptions and ordinals has contributed to its increased use.
Ethereum, known for its smart contract capabilities, has not been left behind. With a 39% increase in its user base, Ethereum now boasts 124 million users. The significant upgrade known as 'Shanghai,' following the network's transition to a proof-of-stake consensus mechanism, has allowed users to unlock and withdraw staked Ether, adding to its appeal.
According to a report by Crypto.com, the global crypto user base has surpassed the half-billion mark for the first time in 2023. This growth has been observed despite the bearish market conditions that have characterized the crypto space. The expansion of Ether (ETH) and Bitcoin (BTC) ownership has been instrumental in this achievement, with ETH reaching 124 million users and BTC climbing to 296 million.
The report highlights several factors contributing to this uptrend, including the anticipation of Bitcoin ETFs in the US, Ethereum's Shanghai upgrade, and the introduction of Non-Fungible Token (NFT) functionality to the Bitcoin network. It also notes the diversification of crypto ownership, with many Bitcoin owners also holding ETH, and a significant portion of the crypto community not holding either BTC or ETH.
