According to a report by Crypto.com, the global number of cryptocurrency users exceeded half a billion in 2023. The research estimates that the total number of cryptocurrency users worldwide grew by 34% during that year, reaching 580 million people compared to 432 million in the previous year. The report reveals that ownership of Ether (ETH) increased from 89 million users to 124 million, while Bitcoin (BTC) ownership rose from 222 million to 296 million by the end of 2023.
Despite challenging market conditions, such as monetary tightening by Western central banks, ongoing conflicts, and the long-term impact of the pandemic, crypto adoption achieved significant milestones in 2023. The report suggests that Ethereum’s Shanghai upgrade and the introduction of non-fungible token functionality on the Bitcoin blockchain through BRC-20 tokens and Bitcoin ordinals contributed to the increased activity and demand for cryptocurrencies. The surge in Bitcoin adoption in the fourth quarter of 2023 also played a role in driving its price above $40,000.
The report highlights that 40% of Bitcoin owners also hold Ether, while 42% of cryptocurrency users do not have either Bitcoin or Ether in their portfolios. Furthermore, a previous report by Bitfinex predicts that the global cryptocurrency user base will reach an estimated 950 million people by the end of 2024.
Crypto.com’s market sizing estimates rely on a unique methodology that combines on-chain data with various parameters to determine the global number of cryptocurrency owners. The company extracts data from 23 cryptocurrency exchanges for its analysis.