The study discovered that the number of individuals owning Ethereum rose from 89 million to 124 million, while Bitcoin ownership climbed from 222 million to 296 million people by the end of the year. Interestingly, it was found that 40% of Bitcoin owners also held ETH, whereas 42% of crypto holders did not have either Bitcoin or Ethereum in their investment portfolios.
The analysts behind the study confidently linked this rise in adoption to the persistence of a bearish trend in the crypto market. Despite macroeconomic headwinds such as the tightening of monetary policies by Western central banks, ongoing military conflicts, and the lingering impact of the pandemic, cryptocurrency adoption has continued its growth trajectory.
“Cryptocurrency adoption has grown for 2023 despite macroeconomic headwinds, including tightening monetary policy by Western central banks in an attempt to curb inflation, military conflicts including in the Middle East, and the long-term effects of the pandemic.”
Two significant developments played a crucial role in boosting network activity and the value of Ethereum. The introduction of the Ethereum Shanghai network update enabled the withdrawal of ethers from staking, while the Ordinals protocol facilitated the creation of BRC-20 tokens on the Bitcoin blockchain, subsequently driving up demand for the oldest cryptocurrency.
Furthermore, the increasing interest from institutional investors significantly influenced the popularity of Bitcoin. The launch of Bitcoin exchange-traded funds in the United States fueled expectations and resulted in a higher number of Bitcoin addresses. Crypto.com analysts observed a notable surge in Bitcoin demand during the fourth quarter of 2023.
A recent survey conducted by Sygnum revealed that over 80% of institutional investors view cryptocurrencies as playing a critical role in the global financial industry. This finding further underscores the growing significance of cryptocurrencies for traditional financial players.