The global number of cryptocurrency holders witnessed a staggering 34% surge in 2023, reaching an impressive 580 million by December, up from 432 million at the beginning of the year.
The growth trajectory was predominantly steered by Bitcoin (BTC) and Ethereum (ETH), with a recent report from Crypto.com unveiling a 33% increase in Bitcoin’s user base. Starting at 222 million in January, the number of Bitcoin users climbed to 296 million by December, constituting 51% of the global crypto ownership.
Crypto Adoption Defies Macro Headwinds
Despite macroeconomic challenges such as increased monetary tightening by Western central banks, ongoing conflicts in Europe and the Middle East, and lingering pandemic repercussions, the adoption of cryptocurrencies in 2023 achieved remarkable milestones.
Crypto.com analysts emphasized the resilience of crypto adoption, attributing the growth to factors beyond the prevalent macro headwinds.
An analysis of 2023 crypto trends reveals buoyant months in April and May, with growth rates of 5.1% and 6.7%, respectively. Notably, these spikes coincided with Ethereum’s Shanghai Upgrade on April 12, 2023.
Ethereum’s Adoption Parallel to Staked ETH Changes with Bitcoin Ordinals Gain Traction
The adoption growth of Ethereum (ETH) mirrored changes in staked ETH, particularly with the continued popularity of liquid staking post the Shanghai Upgrade. Both BTC and ETH experienced significant adoption rises in Q4 2023, fueled by developments in Bitcoin and Ether ETFs.
During the same period, Bitcoin witnessed increased interest, likely propelled by the rising popularity of Bitcoin Ordinals. With over 54 million inscriptions engraved on the Bitcoin network, these inscriptions generated fees exceeding 5,473 BTC, approximately $257 million.
The emergence of BRC-20 tokens played a pivotal role in Bitcoin’s growth in Q4, especially with heightened interest from institutional investors following the launch of Bitcoin ETFs.
In this period, both BTC and ETH experienced substantial price surges, briefly reaching levels of $44,000 and $2,400, respectively. The crypto market demonstrated resilience and adaptability, overcoming challenges and achieving significant milestones in 2023.
