Cryptocurrency User Base Surges by 34% in 2023, Bitcoin and Ethereum Lead the Way

The year 2023 marked a significant milestone in the world of cryptocurrencies as the user base expanded by a staggering 34%. The data, as reported by Crypto.com, showcases the remarkable growth from 432 million users to a whopping 580 million. This exponential increase in cryptocurrency adoption is a testament to the growing prominence of digital assets in the global financial landscape.

The report highlights that the most substantial growth rates occurred in April and May, with increases of 5.1% and 6.7%, respectively. Interestingly, this surge coincided with the activation of the Shapella hard fork in the Ethereum blockchain. This upgrade introduced crucial changes for execution levels (Shanghai) and consensus (Capella), notably enabling the withdrawal of ETH from the Beacon Chain deposit contract.

The leaders in adoption, according to the report, were Bitcoin and Ethereum. Bitcoin's user base, the largest by market capitalization, grew by 33%, increasing from 222 million to 296 million users. Ethereum, the second-largest cryptocurrency, witnessed a remarkable 39% growth, soaring from 89 million to 124 million users.

The rise in Bitcoin adoption on Crypto.com can be attributed to the growing interest in Ordinals and the BRC-20 standard, as well as anticipation for the launch of spot ETFs based on the asset.

Despite macroeconomic challenges, such as tighter monetary policies by Western central banks, prolonged conflicts in Europe and the Middle East, and the long-term repercussions of the pandemic, the adoption of cryptocurrencies reached unprecedented heights in 2023. The report underlines the resilience of cryptocurrency adoption in the face of these challenges.

It is worth noting that Crypto.com's analysis is based on an updated methodology that combines surveys, network data, and internal information. However, the report acknowledges potential factors and errors that could lead to inaccuracies in the presented figures.

In February 2023, analyst Willie Wu predicted that the number of Bitcoin users would reach 1 billion within the next three years. Additionally, in early 2024, ARK Invest CEO Cathy Wood speculated that the price of the first cryptocurrency could reach $1.5 million by 2030, further highlighting the bullish sentiment surrounding digital assets.