According to a new report by Crypto.com, global cryptocurrency owners increased by 39% in 2022 compared to 2021. Total cryptocurrency owners reached 425 million at the end of 2022, from 306 million at the end of 2021. This is a positive development for the industry, given that 2022 was a bearish year overall.
The monthly growth rates in August and September were extraordinarily high, at 5% and 8.1%, respectively.
The number of Bitcoin (BTC) owners increased from 183 million in January to 219 million in December, representing a 20% increase. Moreover, BTC was the most owned asset, accounting for 52% of global cryptocurrency owners.
Additionally, Bitcoin (BTC) witnessed its most significant growth in April, when the Central African Republic decided to legalize BTC as a legal tender.
What about Ethereum, the second-largest cryptocurrency?
Ethereum (ETH) owners, on the other hand, grew by a whopping 263%. Total ETH owners grew from 24 million in January to 87 million in December. Ethereum owners account for 20% of global cryptocurrency owners. The report further highlights that “Ethereum’s monthly growth rates were higher than Bitcoin during the year except in April.” Furthermore, ETH’s massive growth in May 2022, was likely driven by the NFT (non-fungible token) hype.
The report notes that the primary catalyst for ETH’s growth was the “merge.” Ethereum’s transition from a Proof-of-Work (PoS) system to a Proof-of-Stake (PoS) system was an important milestone for the project. However, the event was dubbed “sell the news.” Ethereum’s adoption was further aided by institutional investors’ enthusiasm and the widespread use of liquid ETH staking.
Although 2022 was a disappointing year in terms of monetary growth, Crypto.com’s study shows that adoption is steadily increasing. Moreover, the industry’s growth is only expected to rise in the coming years.
At press time, the global cryptocurrency market cap stood at $997 billion, down by 2.7% in the last 24 hours. If the current trend continues in 2023, the market will enjoy a positive period.