The crypto adoption trends in 2023 suggest that the number of crypto owners has dramatically increased, according to a report published by crypto.com. From 432 million in 2022 to 580 million in 2023, it was a roller coaster ride from the cryptocurrency market. The months of April and May in particular witnessed high growth rates of 5.1% and 6.7%. The two most popular cryptocurrencies have witnessed high adoption rates. Bitcoin grew by 33% and Ethereum grew by 39% in the same period.
Trends influencing the decision of crypto owners
- In 2023, the cryptocurrency Bitcoin witnessed exceptional growth in both April and May. This is attributed to over 54 million ordinal inscriptions that are engraved onto the Bitcoin network. The total inscription fees were over $257 million which is substantially higher than the previous years.
- Ethereum and Bitcoin have witnessed a massive rise in the number of crypto owners. The Bitcoin owners grew by 33% from 222 million in January to 296 million in December. The number of Ethereum owners grew by 39% from 89 million to 124 million.
- Liquid staking became a popular trend in 2023 for Ethereum. The Shanghai Upgrade is largely responsible for bringing this major change.
- The last quarter of 2023 was a period of significant crypto surge. The crypto owners were delighted by the fact that Ethereum (ETH) and Bitcoin (BTC) prices experienced a huge surge. The price of Bitcoin surged above $44,000 which was one of the highest surges in the history of the crypto market. Similarly, Ethereum’s prices reached above $2400.
Reasons Behind the Rise of Crypto Owners of Bitcoin
The main reason behind the rise of crypto owners is the development of Bitcoin exchange-traded funds. The other reason is the introduction of the Bitcoin Ordinals protocol. This protocol is responsible for enabling fungible tokens and non-fungible tokens (NFTs). The institutional investors have taken a strong interest and are partially responsible for an increase in BTC adoption.
Crypto owners are eagerly purchasing cryptocurrencies because the adoption rate has increased. Many business entities are accepting this as a form of payment. This is leading to greater demand among retailers.
The attitude of many governments, central banks, and financial institutions has significantly changed because of more regulations. Currently, the proposed regulations will play a major role in the future of cryptocurrency.
2023 was a year when traditional finance underwent a considerable amount of integration with the crypto market. Many asset management companies and financial institutions are combining the benefits of traditional finance and cryptocurrency. Therefore, many potential investors are realizing that crypto’s stability and reliability have increased.
Also Read- Crypto Banking Solutions For Financial Institutions and Businesses
In Conclusion
The number of crypto owners crossing 580 million in 2023 represents a paradigm shift in the history of cryptocurrencies. There is no doubt that such developments will indeed lead to more critical changes in the financial world. There are a combination of positive factors responsible for increasing the reliability and credibility of cryptocurrencies, thereby, attracting investors and business entities.
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