According to a Crypto.com Data Report, the number of global crypto users surpassed 100 million in January, up 20% since November, thanks to strong Bitcoin and Ethereum adoption.
Crypto.com uses a methodology to account for BTC and ETH deposits into exchanges, on-chain BTC and ETH holdings, holdings reported by exchanges, and by counting % of users who don't own any BTC or ETH (altcoins).
The most exciting part of the report was global crypto users passed 100 million for the first time in history, reaching 106 million in January 2021, a significant 45% increase from January 2020 before the pandemic.
The numbers for February might be even higher, as the non-fungible token (NFT) marketplace for digital collectibles NBA Top Shot — who processed $38 million in volume in 24 hours — is turning NFTs into the ICOs of 2017.
Bitcoin's price rally to $40,000 was driven largely by existing bitcoin users, but the rally was sustained by 15.7% new new user growth in January, up nearly 20% since November, thanks to a wave of institutional adoption.
The report concluded that the Bitcoin population is estimated to be 71 million, with exchanges handling 92% of bitcoin transactions. Approximately 28% of the users were active in January, with 3.36 exchanges per user and about 20 million on-chain Bitcoin addresses.
The report concluded that the Ethereum population is estimated to be 14 million, with exchanges handling 92% of Ethereum transactions as well. Approximately 33% of the users were active in January, with 3.36 exchanges per user and about 4.7 million on-chain Ethereum addresses.
The report concluded that there at 71 million Bitcoin users, 14 million Ethereum users, and 21 million other altcoin users. They found a 25% overlap in the users between BTC and ETH, and 35% altcoin maximalists (people who don't own any BTC or ETH). Exchanges cover 89% of the crypto industry, as 11% of crypto users participate in crypto without using an exchange.
In November, PayPal seemed to kick off the latest Bitcoin bull run by opening up its cryptocurrency platform to all U.S. customers. Since then, the volatility index has increased from below 2.9% daily standard price deviation to over 6% in February and 5.3% for the trailing 30 days.
Last month, The Bank of New York Mellon, the nation’s oldest bank with $41 trillion under custody, said that it will begin holding custody of bitcoin and other digital currencies. On February 8, Elon Musk sent the crypto industry into a frenzy on a Monday morning with a $1.5 billion bitcoin buy for Tesla, spiking Bitcoin 22% in a single day. MicroStrategy and Square bought the dip last week by adding $1 billion and $170 million (respectively).
The University of Cambridge corroborated the ~100 million crypto users estimate in their 3rd Global Cryptoasset Benchmarking study released in December.
At 106 million crypto users, the crypto industry has only about 1% adoption by 7.67 billion people in the world.