04.03.2024

Analysts told how many people around the world use cryptocurrencies

Crypto.com platform experts have published a new report on the number of cryptocurrency users around the world. In general, it is difficult to compare unique crypto-addresses with the number of people.

Therefore, the analyst methodology combines blockchain state data with several mixed parameters. As a result, they determine separate estimates for the two largest cryptocurrencies by market capitalization, i.e. Bitcoin and Ethereum. A specific metric is then calculated that is used to track the growth trends in the number of users of digital assets over time.

First, a little explanation. Counting users of cryptocurrencies is difficult as one person can own an infinite number of addresses. There are striking examples of this: as we reported last December, one user created approximately five hundred addresses on the Ethereum network and used them on the 1inch decentralized exchange. Thus, he hoped to receive an increased bonus for early adopters. However, as it turned out, he made one mistake. To receive a reward from the exchange, it was necessary to conduct transactions for at least $ 20, and his figure was $ 17.

In addition, in the Bitcoin network, wallets create new addresses for receiving coins and thus partially cover your tracks. This means that it is even more difficult to calculate the real number of users here.

Finally, it is important to take into account different blockchains, because the same person can use different networks, due to which he will have several cryptocurrency addresses. For example, he may keep his savings in Ethereum, but swap on the Binance Smart Chain (BSC) due to lower fees. Also, do not forget the Solana network from the founder of the FTX exchange Sam Bankman-Fried, which is also actively developing.

Here it becomes obvious that it is very difficult to determine the exact number of cryptocurrency users around the world. However, Crypto.com experts still made an attempt.

How many people own cryptocurrencies?

Over the past eight months, the highest growth rates were noted in June, August and January. This trend coincides with the rise in the prices of Bitcoin and Ethereum over the same time period. In particular, the rise in adoption of blockchain assets in August 2020 was largely driven by the popularity of the decentralized finance sector, reports Cointelegraph.

Bitcoin cryptocurrency chart

Change in the number of cryptocurrency users by month

The integration of Bitcoin and popular altcoins into the PayPal network in November 2020, along with investments from Grayscale and Microstrategy, also set a new trend for the coming months.

The impact of these events on investors is clear. The advent of cryptocurrencies on the PayPal platform has allowed significantly more people to interact with cryptocurrencies. In addition, they do not need to worry about the safety of funds and their security, since the centralized service does it on its own. Well, large purchases of bitcoins and other coins from world famous companies have improved the reputation of the coins and made it clear that they can be considered as a full-fledged tool for preserving and increasing value.

By January, the global number of Bitcoin users was estimated at 71 million , compared to 14 million for Ethereum. The number of users of each coin has skyrocketed this month – by 30.2 percent and 13.1 percent for BTC and ETH, respectively .

In general, it turned out that in the period from May 2020 to January 2021, the number of cryptocurrency users increased from 66 to 160 million people .

Bitcoin cryptocurrency chart

Increase in the number of Bitcoin and Ethereum users

And although the Crypto.com research methodology allows you to display a fairly accurate picture of what is happening, analysts note that it is very difficult to count the active users of OTC trading platforms in this way, since they conduct transactions offline – that is, bypassing cryptocurrency exchanges. So, in reality, the number of active users of cryptocurrencies may even be higher than the figures given in the study.

We believe that it is almost impossible to determine the real number of cryptocurrency users in the world, but analysts have done an excellent job. In addition, the main result of their research was precisely the confirmation of the fact of the growth of fans of blockchain assets. And since the indicator is growing steadily and sharply, investors can certainly count on the continuation of the large-scale run of the market.

Leave a Reply

Your email address will not be published. Required fields are marked *