The adoption of cryptocurrencies has grown enormously, with as many as 106 million users as of January 2021. This was revealed in an analysis by Crypto.com.
According to the report, a few key facts have driven cryptocurrency adoption:
- Bitcoin’s price growth;
- The boom in the DeFi industry;
- The launch of crypto services by PayPal;
- The adoption by institutional investors, starting with MicroStrategy and Grayscale.
The path to mass adoption of cryptocurrencies
The number of crypto users according to the report has almost doubled in a year. In March 2020, there were 66 million people with cryptocurrencies, while 10 months later there are 106 million.
The analysis focuses in particular on Bitcoin and Ethereum users, analyzing the movements made on at least 24 of the most popular exchanges. Some interesting data emerge from the charts. As of January 2021, there would be at least 71 million people owning Bitcoin, 14 million owning Ethereum. 25% of cryptocurrency users own both Bitcoin and Ethereum, while 35% own cryptocurrencies but not BTC or ETH. 89% use exchanges.
The crypto population has grown significantly since August 2020. In July, Crypto.com’s analysis estimated 74 million crypto users, growing to 88 million in August. The population remains stable until December 2020 (92 million users), and then grows again to 106 million in January 2021.
According to the report, the so-called “DeFi mania” contributed to the growth in August.
Crypto.com claims that the growth in the period December 2020 to January 2021 was driven by the Bitcoin rally. The price of Bitcoin rose from $20,000 on December 17th to a peak of $40,000 on January 8th. The rally, the research says, was pumped up by existing users, and sustained by new ones.
It will be interesting to see how many new users there are in February. The month that is coming to a close has seen interesting news such as Tesla’s purchase of Bitcoin. This is one of the reasons why Bitcoin registered record highs close to $60,000. Ethereum also crossed the $2,000 mark for the first time in its history.
These factors may have contributed to FOMO (Fear of Missing Out) and further boosted cryptocurrency adoption.