• Mon. Apr 22nd, 2024

Crypto Industry Recorded Massive Influx Of Over 110M New Users Globally

Maria Bartiromo

ByMaria Bartiromo

Jun 15, 2023

Reports revealed that the crypto market rally in 2021 was followed by a series of obstacles, including regulatory opacity and notable sell-offs of crypto assets like Bitcoin and Ethereum. However, the number of users venturing into the crypto industry has grown exponentially.

According to data from Finbold, in 2023, the total number of crypto users has reached 417.5 million. This represents a remarkable yearly growth of 36.89%, translating to an additional 112.51 million users, likened to the 305 million recorded last year.

Furthermore, Asia has emerged as the driving force behind the widespread adoption of crypto assets, recording a massive increase in users. As of May 2023, the region recorded an outstanding 100% growth, with a total of 260M new users, compared to the previous year’s figure of 130M.

More so, North America follows closely behind with 54M new investors, recording a fair increase of 3 million compared to last year’s record of 51 million users. On the other hand, both Africa and Europe experienced a decline in crypto asset users. Africa saw a significant drop of 28%, reducing the users’ count from 53 million to 38 million, while European users decreased from 43M to 31M users.

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Many Countries Continues To Adopt Crypto

When examining the distribution of crypto ownership in relation to each country’s population, Thailand claims the top spot in 2023 with a share of 9.32%. Following closely behind is India with 7.24%, and with 6.98%, Brazil claims the third position.

In addition, Pakistan secures the fourth position with 6.41%, while France completes the top five with 5.91%. These figures highlight the varying levels of crypto adoption across different nations.

According to the report, several factors have contributed to the growth of crypto users. One such factor is the FOMO (fear of missing out) sensation, which prompts individuals to enter the market during crypto downturns to capitalize on possible investment increases.

Furthermore, the growing acceptance and recognition of cryptocurrency assets have emerged as influential factors in drawing in fresh users globally. The user-friendly nature and convenience offered by crypto platforms and exchanges have additionally facilitated the participation of retail investors.

Moreover, the adoption of cryptocurrencies as a viable payment method by enterprises has significantly contributed to expanding the user base. In developing economies characterized by volatile financial systems and limited access to conventional banking facilities, crypto is embraced as an alternative, inclusive financial solution, fueling adoption in these regions.

Crypto Industry Grows In Harsh-Business Environment

Despite encountering obstacles, such as a prolonged bear market, the global surge in user adoption remains noteworthy. This growth has persisted even in the face of prominent events that shook confidence in the industry, like the FTX crypto exchange collapse and the Terra (LUNA) ecosystem crash.

In addition, some countries, such as the United States, have taken a strict approach, as evidenced by the SEC (Securities and Exchange Commission) filing lawsuits against Ripple, Binance, and Coinbase for alleged violations of securities laws. Nevertheless, the crypto community continues to expand.

Experts in the market anticipate that regulatory measures will influence regional trends in crypto users. Currently, Asia is at the forefront, primarily due to the increasing acceptance of blockchain-based payment solutions in countries like India, China, Singapore, South Korea, and Japan.

This adoption is particularly notable in the banking, financial services, and insurance sectors. Stricter regulations in North America and Europe are expected to lead to a loss of crypto business in the Asia-Pacific region.

This is evident from Asia’s highest year-over-year user growth rate. Europe, in particular, has seen a decline coinciding with enacting the Markets in Crypto Assets (MiCA) law, designed to create a legal framework for the crypto asset market.

With the cryptocurrency market aiming to recover from the current downturn, we can expect an increase in users, particularly in regions that adopt favorable regulations. Additionally, the user count may receive a significant boost from the potential rise in demand for cryptocurrencies among banks and financial institutions, as well as the untapped potential in emerging economies.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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