There are currently 580 million cryptocurrency holders worldwide

This article briefly:

-Global cryptocurrency holders increased by 34% to 580 million in 2023, led by Bitcoin and Ether.

-Key developments such as the Bitcoin ETF, Bitcoin Ordinals, and the Ether Shanghai upgrade drove this growth.

-The increase in cryptocurrency ownership marks a shift to digital assets, attracting a diverse global investor base.

In 2023, the number of cryptocurrency holders globally jumped 34% to a staggering 580 million by December, compared to 432 million in January.

This growth trajectory, led largely by Bitcoin (BTC) and Ether (ETH), marks a significant shift in the cryptocurrency market.

580 million cryptocurrency holders worldwide

A recent report from Crypto.com showed that Bitcoin’s user base grew by 33%, from 222 million in January to 296 million in December. Interestingly, this surge accounts for 51% of global cryptocurrency ownership.Whatsminer Miner

“In 2023, cryptocurrency adoption achieves a new milestone, with the number of cryptocurrency holders reaching 580 million despite macro headwinds, namely further tightening of monetary policy by Western central banks to curb inflation, protracted dynamic conflicts in Europe, and a new round of conflicts around the globe, Crypto.com analysts wrote: “The Middle East and the long-term consequences of a pandemic.”

Number of cryptocurrency holders. Source: crypto.com

Bitcoin’s remarkable adoption rate can be attributed to several key developments. Key among these is the introduction of the Bitcoin ETF (exchange-traded fund) and the Bitcoin Ordinals protocol. The latter innovation enables the minting of non-homogenized tokens (NFTs) and homogenized tokens directly on the Bitcoin network.

Ether is the second-largest cryptocurrency by market capitalization and its adoption rate is a close second. In fact, its holdings grew by 39% over the same period, from 89 million to 124 million, representing 21% of global cryptocurrency holders. The EtherShares Shanghai upgrade primarily drove this growth.

The upgrade facilitates liquidity pledges and allows for the withdrawal of pledged ETH after the transition to the Proof of Stake (PoS) blockchain .

Drivers behind mainstream adoption

An analysis of cryptocurrency trends for 2023 shows that April and May were particularly active months, with growth rates of 5.1% and 6.7%, respectively. This rise coincided with Ether’s April 12, 2023 Shanghai upgrade.Bitmain Miner

The growth in ETH adoption has been almost synchronized with the changes in pledged ETH. In fact, liquidity pledges continue to trend after the Shanghai upgrade. Adoption of both BTC and ETH rose sharply in Q4 2023, driven by the development of Bitcoin and Ether ETFs.

Ether pledging and adoption. Source: crypto.com

In addition, interest in Bitcoin has increased significantly these past few months, likely due to the growing popularity of Bitcoin serial numbers. There are over 54 million inscriptions inscribed on the Bitcoin network. These inscriptions have generated more than 5,473 BTC in fees, or about $257 million.

The emergence of the BRC-20 token also played a crucial role in Bitcoin’s fourth-quarter growth. The trend was fueled by growing interest from institutional investors with the launch of the Bitcoin ETF.

During this period, the prices of BTC and ETH experienced significant spikes, briefly reaching levels of $44,000 and $2,400, respectively.

Bitcoin price and adoption. Source: crypto.com

The composition of cryptocurrency holders remained relatively stable, with the share of BTC and ETH remaining flat. The growth in the total number of cryptocurrency owners is attributed to this. adoption of ETH increased by 0.7% year-on-year, while adoption of Bitcoin declined slightly by 0.4%.

The impressive growth in cryptocurrency ownership reflects a broader shift to digital assets, attracting all types of investors and enthusiasts across the globe.