Crypto Quill

The year 2023 was a remarkable one for the cryptocurrency industry, as more and more people around the world embraced the benefits of digital assets. According to a report by Crypto.com, the number of global cryptocurrency owners increased by 34% in 2023, reaching 580 million by December. This growth was driven by various factors, such as ecosystem upgrades, institutional adoption, regulatory developments, and innovation.

Bitcoin and Ethereum Lead the Way

The two most popular cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), saw significant growth in their user base in 2023. Bitcoin owners grew by 33%, from 222 million in January to 296 million in December, accounting for 51% of global crypto owners. Ethereum owners grew by 39%, from 89 million in January to 124 million in December, accounting for 21% of global crypto owners.

The main catalyst behind BTC’s adoption growth was the development in bitcoin exchange-traded funds (ETFs) and the introduction of the Bitcoin Ordinals protocol, which enabled non-fungible tokens (NFTs) and fungible tokens to be minted on the Bitcoin network. The U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs on Jan. 10, 2024, including one from Grayscale, which converted its bitcoin trust into an ETF. This opened the doors for more institutional and retail investors to access the leading cryptocurrency.

ETH’s adoption growth was mainly driven by liquid staking after Ethereum’s Shanghai Upgrade, which allowed the withdrawals of staked ETH after the transition to the Proof of Stake (PoS) blockchain. This made Ethereum more scalable, secure, and energy-efficient, as well as enabling new features such as sharding and rollups. Ethereum also continued to dominate the decentralized finance (DeFi) and NFT sectors, with more than $300 billion locked in DeFi protocols and more than $10 billion worth of NFTs sold in 2023.

Other Cryptocurrencies and Trends

Besides Bitcoin and Ethereum, other cryptocurrencies also saw increased adoption in 2023. Some of the notable ones are:

• Solana (SOL), which grew by 1200% in 2023, reaching a market capitalization of over $200 billion. Solana is a high-performance blockchain that can process over 50,000 transactions per second, making it ideal for applications that require speed and scalability. Solana also hosts a vibrant ecosystem of DeFi, NFT, and gaming projects, such as Audius, Star Atlas, and Metaplex.
• Cardano (ADA), which grew by 400% in 2023, reaching a market capitalization of over $100 billion. Cardano is a smart contract platform that aims to provide a more sustainable, scalable, and secure alternative to Ethereum. Cardano launched its Alonzo upgrade in September 2023, enabling smart contracts and DeFi applications on its network. Cardano also partnered with several governments and organizations in Africa and Asia to promote digital identity, education, and healthcare solutions.
• Dogecoin (DOGE), which grew by 300% in 2023, reaching a market capitalization of over $50 billion. Dogecoin is a meme-inspired cryptocurrency that started as a joke but gained popularity due to its loyal community and celebrity endorsements. Dogecoin was supported by Tesla CEO Elon Musk, who announced that his company would accept DOGE as a payment option for its products and services. Dogecoin also benefited from the launch of the Doge-Ethereum bridge, which enabled cross-chain transactions and interoperability.

Some of the other trends that shaped the crypto industry in 2023 are:

• The rise of the metaverse, which is a virtual reality where people can interact, socialize, and create value. The metaverse was fueled by the popularity of NFTs, which are digital representations of unique assets such as art, music, games, and collectibles. The metaverse also attracted the attention of major tech companies, such as Facebook, which rebranded itself as Meta and launched its own metaverse platform, Horizon.
• The emergence of Web 3.0, which is a decentralized and user-centric version of the internet. Web 3.0 aims to give users more control over their data, identity, and privacy, as well as enable new forms of collaboration and innovation. Web 3.0 is powered by blockchain technology, which provides a transparent, secure, and distributed ledger for transactions and information. Web 3.0 also encompasses various domains, such as DeFi, NFTs, DAOs, and DApps.
• The adoption of crypto regulations, which is a sign of the growing maturity and legitimacy of the crypto industry. Several countries and regions enacted or proposed crypto regulations in 2023, such as the European Union, the United Kingdom, Singapore, Dubai, Spain, and the Netherlands. These regulations aimed to provide clarity, protection, and oversight for crypto users, investors, and businesses, as well as to prevent money laundering, fraud, and tax evasion.

Crypto.com’s Role and Vision

Crypto.com, the company behind the Crypto Market Sizing Report, is a leading platform for buying, selling, and using cryptocurrencies. Crypto.com has over 80 million customers worldwide and is the industry leader in regulatory compliance, security, and privacy. Crypto.com’s vision is simple: Cryptocurrency in Every Wallet.

Crypto.com achieved several milestones in 2023, such as:

• Securing various regulatory licenses and registrations from authorities in Dubai, Singapore, Spain, the Netherlands, and the United Kingdom, among others.
• Launching its own NFT marketplace, which features exclusive collections from artists, celebrities, and brands, such as Snoop Dogg, Lionel Messi, and Marvel.
• Expanding its product offerings, such as the Crypto.com Visa Card, which allows users to spend their crypto anywhere Visa is accepted, the Crypto.com DeFi Wallet, which allows users to access DeFi protocols and earn interest on their crypto, and the Crypto.com Exchange, which allows users to trade over 200 pairs of cryptocurrencies with low fees and high liquidity.
• Partnering with various organizations and events, such as Formula 1, UFC, Paris Saint-Germain, Lega Serie A, and the Coppa Italia, to promote crypto awareness and adoption.

“This past year is another important foundational year for the entire crypto community,” said Kris Marszalek, CEO of Crypto.com. “Once again despite headwinds and challenges, the industry proved resilient and is well-positioned for mass adoption. At Crypto.com, our focus on responsible innovation continues to effectively drive us forward.”

The full Crypto Market Sizing report from Crypto.com is available here.