The adoption of cryptocurrencies such as Bitcoin, Ether and the like is increasing, as recent studies have shown. Not only is there a lot of trust in the industry, investors also tend to remain loyal to the coins.
• Number of crypto owners increased by 34 percent in 2023
• Bitcoin and Ether in focus
• Good sentiment among crypto investors
Crypto adoption is progressing
Cryptocurrencies are becoming increasingly popular as financial investment products. The crypto exchange Crypto.com came to this conclusion, as the trading platform for Bitcoin, Ethereum & Co. recorded in its “Crypto Market Sizing Report”. According to the report published at the end of January 2024, the number of cryptocurrency owners increased last year from 432 million in January to 580 million at the end of the year – an increase of 34 percent. “Last year marks another important cornerstone year for the entire crypto community,” Crypto.com CEO Kris Marszalek commented on the results, according to a press release.
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A lot of headwind
The market for cryptocurrencies experienced some resistance in 2023, as Marszalek emphasized. It is all the more pleasing that more people still put their trust in the coins. The industry has proven itself successfully in the face of the central banks’ tight interest rate policies and has also weathered geopolitical conflicts such as the Ukraine war or the Middle East conflict. “Once again, the industry has proven resilient despite headwinds and challenges and is well positioned for widespread adoption,” the exchange boss added. “At Crypto.com, our focus on responsible innovation continues to drive us forward effectively.”
ETF rumors gave Bitcoin momentum
Among the cyber currencies, the largest cryptocurrency in terms of market capitalization, Bitcoin, gained significantly in popularity last year. In January 2023, the crypto exchange still had 222 million Bitcoin owners; at the end of the year, 296 million people already had the crypto veteran. Not only is this an increase of 33 percent, but the number of Bitcoin owners will also account for 51 percent of all crypto owners at the end of 2023.
Crypto.com identified the rumors that Bitcoin spot ETFs would soon be approved by the US Securities and Exchange Commission as the driving force, which actually took place on January 10, 2024.
Ethereum upgrade creates a good mood
But the number two crypto, Ethereum, also gained significantly in popularity in 2023, as the results of the trading platform show. From the previous 89 million Ether owners, there was an increase of 39 percent to 124 million over the course of the year. Looking at the total number of crypto owners, Ethereum fans represent 21 percent of this.
Crypto.com explains the growth here primarily with the long-awaited Shanghai upgrade, which was rolled out in April 2023 and, above all, simplified staking the cryptocurrency.
Great confidence in crypto sector
A similar study by Crypto.com competitor Binance also showed that crypto investors tend to remain loyal to the internet currency market once they are invested. The survey among investors from France, Italy, Spain and Sweden showed that 82 percent of the subjects have been investing in the crypto sector for over a year. “In addition, 53% are active traders who predominantly prefer centralized exchange wallets, which signals trust in established crypto platforms,” says a statement from the crypto exchange from the end of January 2024. Overall, 73 percent of respondents are confident about trading with cryptocurrencies.
Survey participants cited the chance of attractive returns (20 percent) as the main motivation for their involvement in cryptocurrencies, followed by trust in decentralized systems (18 percent) and technological progress (17 percent). In addition, 55 percent of investors surveyed said they regularly use cryptocurrencies to pay for purchases.
Greater focus on cryptocurrencies
The survey also showed that investors are increasingly focusing their attention on cryptocurrencies, as 55 percent of respondents are invested exclusively in Bitcoin & Co., but not in other financial products such as stocks, ETFs or bonds. Approximately 25 percent of participants also reported that over half of their trading activity was cryptocurrency-related.
Some really positive findings from us #Binance survey across Europe.
73% of respondents were optimistic about the future of crypto & with MiCA implemented soon, there’s a lot to be excited about in the region!
More details from @Finbold here??https://t.co/gE3l6e5MtT
-Rachel Conlan (@RachelConlan) January 25, 2024
Rachel Conlan, Chief Marketing Officer at Binance, commented on the study results via X (formerly Twitter) and expressed confidence in the adoption of cryptocurrencies. “73% of respondents were optimistic about the future of cryptocurrencies,” wrote the marketing director. “With the imminent launch of MiCA, there is much to be excited about in the region!” The EU regulation Markets in Crypto-Assets Regulation (MiCA) is intended to create uniform regulations for the handling of cryptocurrencies in Europe and is expected to come into force in the summer of 2024.
Editorial team finanzen.net