According to a new study by Crypto.com, the total number of global cryptocurrency users has exceeded 100 million for the first time. The study, which measured the size of the cryptocurrency market using onchain metrics, survey analytics, and internal data, recorded 106 million cryptocurrency users in January 2021.
January Bitcoin rally saw global users jump 15.7%
Compared to December 2020, the 106 million users mean an increase of 15.7% in just one month. What is driving the growth of the crypto market? According to research from Crypto.com, the dynamics of the Bitcoin adoption will matter.
Eric Anziani, COO of Crypto.com, had this to say about the research on Bitcoin.com:
Our study improves previously used methods in order to find a clear trend towards increasing ownership of cryptocurrencies. With more and more companies and retailers using cryptocurrencies as treasury assets and means of payment, we expect 2021 to be a banner year for the mass adoption of cryptocurrencies, bringing us closer to our vision of “cryptocurrency in every wallet”.
Bitcoin has surpassed its all-time high to date, increasing its market capitalization to over $ 1 trillion. The growth is also showing no obvious signs of slowing down as sentiment around cryptocurrency rises, particularly as JP Morgan and BNY Mellon will begin offering digital payment methods. Investors do not even stack 10-digit numbers in Bitcoin for two full months of the year. Tesla bought $ 1.5 billion worth of Bitcoin in early February, and investment website Motley Fool announced a $ 5 million investment just a week later.
Bitcoin isn’t the only thing fueling demand for cryptocurrency. Several other factors also play a role. Crypto.com’s research attributes this rapid rise to the growth of the decentralized financial market (Defi), the ability to buy, sell and hold cryptocurrency through PayPal, and the institutional adoption of cryptocurrency that is attracting new crypto users every day.
The defibrillation momentum is growing
The momentum of the Defi market is significant given the increased demand for Ethereum and other altcoins like Binance’s BNB. The total market capitalization of defi-blocked coins has grown from $ 690 million to over $ 11.7 billion. This is a significant number that is encouraging new investors to enter the market.
According to research by Crypto.com, the growth rate of ETH was higher than that of BTC in November and December 2020. BTC’s unique users grew by 1.5% in November compared to 2.8% at ETH. In December, the change in ETH was almost twice that of BTC: 2.8% versus 1.2%.
How accurate are all of these numbers? A total of 24 exchanges were included in the study. While Crypto.com has updated and improved its methodology since its last report, it admits that these numbers may have some small caveats.
How long do you think it will take to reach 200 million users now? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Crypto.com Research,
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