In 2023, the global cryptocurrency landscape witnessed remarkable growth, with the number of cryptocurrency owners surging by 34% to reach a staggering 580 million by the year’s end, as reported by Crypto.com. This notable increase, up from 432 million in January, defied prevailing macroeconomic challenges such as stringent monetary policies by Western central banks, ongoing conflicts in Europe and the Middle East, and the enduring effects of the pandemic.
Crypto Boom 2023
The surge in adoption was evident in the first half of the year, notably marked by the success of the Ethereum Shanghai Upgrade in April. This upgrade not only bolstered Ethereum network activity but also contributed to a rally in Ethereum prices. The latter half of 2023 witnessed sustained growth in both Bitcoin and Ethereum adoption.
Bitcoin, representing 51% of global cryptocurrency owners, saw a 33% increase, reaching 296 million by December. The introduction of the Bitcoin Ordinals protocol played a pivotal role in this growth, facilitating the minting of non-fungible tokens (NFTs) and fungible tokens on the Bitcoin network. Bitcoin’s exceptional performance in April and May was attributed to the momentum generated by Bitcoin Ordinals, with more than 54 million inscriptions on the network and a total inscription fee exceeding 5,473 BTC ($257 million).
Institutional interest further fueled Bitcoin’s adoption, with significant developments in Bitcoin exchange-traded funds (ETFs). Notably, BlackRock’s Bitcoin ETF filing and other institutional heavyweights contributed to a surge in institutional adoption.
Ethereum, representing 21% of global cryptocurrency owners, experienced a 39% growth, reaching 124 million by December. The adoption growth was closely tied to the implementation of liquid staking after Ethereum’s Shanghai Upgrade, enabling the withdrawal of staked ETH after the transition to the Proof of Stake (PoS) blockchain.
Analysis of the trends in 2023 revealed exceptionally strong monthly growth rates of 5.1% and 6.7% in April and May, respectively. The overall growth of owners for Bitcoin and Ethereum remained robust throughout the year, with prices reaching notable levels in Q4 2023—$44,000 for Bitcoin and $2,400 for Ethereum.
Despite fluctuations in market dynamics, the composition of cryptocurrency owners demonstrated stability, with Ethereum’s adoption rate increasing by 0.7% and Bitcoin witnessing a marginal decrease of 0.4% during the year. The crypto market’s resilience in the face of global challenges underscores the growing significance of digital assets in the financial landscape.
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