Cryptocurrency Outlook
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In the 2023 Crypto.com market sizing report, it was revealed that the number of new crypto owners increased by 148 million from January to December 2023. This surge accounted for a remarkable 34% rise, bringing the total number of global crypto owners to 580 million. This growth was driven by several factors, including the development of Bitcoin exchange-traded funds (ETFs), the introduction of the Bitcoin Ordinals protocol, and strong interest from institutional investors. Ethereum also saw significant adoption growth, particularly due to the Shanghai Upgrade, which allowed the withdrawals of staked ETH following its transition to a Proof of Stake (PoS) blockchain.
The future outlook for the number of crypto users remains positive, as cryptocurrencies continue to gain recognition and acceptance as legitimate means of transaction and investment. This trend is expected to persist, supported by ongoing innovations and broader adoption across various sectors.
Number of Global Crypto Owner - Source: Crypto.com
Firstly, more businesses and institutions are beginning to recognize the benefits of using cryptocurrencies for transactions and investments. Some major companies, such as Tesla and Square, have already invested in Bitcoin, which has helped to increase the mainstream acceptance of cryptocurrencies.
A Bit Pay study has found that 40% of consumers who make payments using cryptocurrency are new to the merchant, and they tend to spend twice as much as those who pay with credit cards. This trend of increasing adoption of cryptocurrency is beneficial for businesses, prompting them to adopt cryptocurrency payments.
Secondly, there is increasing demand for cryptocurrencies as a means of cross-border payments, particularly in regions with less developed financial systems. Cryptocurrencies offer a fast, low-cost, and secure way to transfer funds across borders, which is especially valuable for individuals and businesses that lack access to traditional banking services.
Finally, advancements in technology are making cryptocurrencies more user-friendly and accessible to a wider audience. The rise of mobile apps and digital wallets is making it easier for individuals to buy, store, and use cryptocurrencies.
