- Ethereum and Bitcoin ownership expanded substantially in 2023, with Ethereum reaching 124 million users and Bitcoin reaching 296 million users. This growth was driven by upgrades, new capabilities, and rising overall crypto awareness.
- The total global cryptocurrency user base grew 34% to surpass 500 million users by the end of 2023, showing resilience despite difficult market conditions.
- Continued improvements to blockchain technology and mainstream integration could help the user base grow further, potentially reaching 950 million by 2024. But risks like regulation could impede expansion.
The number of cryptocurrency users worldwide surpassed half a billion by the end of 2023, representing substantial growth despite difficult market conditions. This growth was driven by rising adoption of major cryptocurrencies like Bitcoin and Ethereum as well as greater overall crypto awareness.
Ethereum Adoption Expands
Ethereum ownership increased from 89 million users in 2022 to 124 million users by the end of 2023. Ethereum’s Shanghai upgrade and the launch of staking helped drive more activity and demand. The increasing functionality of Ethereum through NFTs and decentralized finance also contributed to its growing user base.
Bitcoin Reaches New Highs
Bitcoin ownership grew from 222 million users to 296 million in 2023. The prospect of a Bitcoin ETF in the US, the advent of new products like BRC-20 tokens, and strong price performance later in the year all helped expand Bitcoin’s reach. Bitcoin remains the most widely-held cryptocurrency.
Driving Factors Behind Growth
Several factors drove the 34% increase in the global crypto user base. Prolonged bearish market conditions, inflationary pressures, and geopolitical conflicts did not prevent adoption. Instead, major upgrades and new capabilities for Ethereum and Bitcoin met latent user demand. The overall maturation of the crypto ecosystem also contributed to onboarding new users.
The Outlook for 2024
Industry forecasts predict the user base will expand further in 2024, potentially reaching 950 million people by year’s end. As blockchain technology improves and awareness spreads, cryptocurrencies appear poised for mainstream integration. However, risks like regulation and security failures could impede continued expansion.
Conclusion
2023 proved cryptocurrencies have reached a critical mass of users and demonstrated their resilience even amid uncertain macro conditions. If cryptocurrency developers can continue enhancing utility while avoiding past pitfalls, the next few years could see crypto become a standard element of the financial system.
