- The number of crypto users doubled from 100 million to 200 million in just four months.
- By June this year, the number of crypto users had reached a staggering 221 million.
- Following the May crash, meme tokens like Dogecoin drove growth.
New research from the cryptocurrency exchange Crypto.com reveals that the crypto user numbers doubled from 100 million to 200 million in just four months. The research noted that while Bitcoin accelerated growth earlier this year, following the May crash, altcoin adoption started to drive growth.
In new research dubbed “Measuring Global Crypto Users,” the prominent digital asset company Crypto.com examined the market size and rate of adoption. According to the research, the cumulative number of crypto users reached a staggering 221 million in June this year.
Cryptocurrency adoption saw an accelerated growth earlier this year, as the crypto population reached 200 million in a matter of months. In comparison, the total number of crypto users increased from 65 million to 100 million in nine months, the research affirmed.
When breaking down the growth, it appears that Bitcoin drove the growth earlier this year from January to April. Arguably, this was due to the unprecedented attention around the leading cryptocurrency fueled by reputable institutions like Mastercard, Visa, Microstrategy, and PayPal. Moreover, Tesla’s $1.5 billion Bitcoin acquisition along with the company’s acceptance of Bitcoin as a payment method further turned attention toward Bitcoin.
Furthermore, following the May crash, Ethereum saw notable adoption. Particularly in May and June this year, as some institutional investors were cashing out their Bitcoins, Ethereum managed to absorb more investment.
However, the research revealed that both Bitcoin and Ethereum are losing their rapid growth rate. New players like layer 2 solutions and meme tokens saw accelerated adoption in the second quarter of 2021. Among meme tokens, Dogecoin and Shiba Token managed to spur an altcoin adoption especially when Bitcoin was under attack by Elon Musk.
Continual Growth Remains Promising
Kris Marszalek, CEO at Crypto.com, said the growth in this emerging space is quite promising. “The growth we have seen in the first half of 2021 on our platform and industry-wide is very encouraging, and we will continue investing heavily as we pursue our goal of putting cryptocurrency in every wallet,” he said.
Aside from the retail interest in crypto, more and more institutions and larger fund management firms are also considering an investment in this space. A recent survey by Goldman Sachs revealed that 45% of family offices, wealth management companies that serve ultra-rich investors, have plans to invest in crypto.
The survey further revealed that 15% of family offices have already invested in some form of digital currencies. Moreover, an increasing number of wealth management firms are passionate about investing in the ecosystem and emerging technology of digital assets.
