The total number of cryptocurrency users across the globe has grown to 106 million as per a report from crypto.com. The total crypto users topped the 100 million marks in January 2021, rising from 66 million in May 2020. To calculate the crypto user growth, crypto.com used on-chain data from exchanges along with several other complex parameters to map the growth of Bitcoin and Ethereum. The resulting data was then used for tracking user growth trends across the world.
The said report found that the strongest user growth came in June 2020, August 2020 and January 2021, and the user growth rate correlates with the Bitcoin price rise. The deep analysis of the growth of Bitcoin and Ether showed that most of August 2020 adoption came from defi popularity. While Bitcoin’s rising price and continuous institution buying saw MicroStrategy, PayPal and Grayscale buy billions worth of Bitcoin combined.
Bitcoin Ethereum and Defi’s Price Rise Led to Significant Adoption
The research report found that the user growth was directly proportional to the market hype combined with the rising price of Bitcoin, Ethereum, and Defi markets. January in particular saw the maximum user influx in both the top cryptocurrencies. The user share of Bitcoin grew by nearly 31% to reach 71 million and Ethereum by 13% to top 14 million
Crypto.com also highlighted that the findings are based on the result of on-chain analysis of only Bitcoin and Ethereum, and on top of that the firm didn’t include OTC desk users as well as off-chain settlements. Thus, the actual number of users could be considerably more than the projected report.
The boom in user growth almost doubling over the past 6 months is in sync with Bitcoin’s price rise starting towards the end of October. Also, Defi having grown into a $40 billion-plus industry helped in the adoption of Ethereum.