The total number of Bitcoin and Ethereum users grew by almost 50% last year.
The rise in BTC prices has accelerated the growth rate of the crypto market and iInstitutional adoption powered by MicroStrategy.
Crypto.com has published a report on the use and size of the crypto market and information about its users.
The number of cryptocurrency users at the end of May 2020 was estimated at 66 million users. According to new results found by Crypto.com, the total population of crypto users has grown and reached a major milestone in 2021 with 106 million users.
Of this total, 71 million are Bitcoin users and 14 million are Ethereum users with 25% of the figure owning both cryptocurrencies and 35% lacking funds in both. As the chart below shows, August 2020 and January 2021 were the months with the largest increase in the total size of the crypto market.
The report also shows that the growth of the market increases when the price of Bitcoin also increases. In this sense, the rally of the first cryptocurrency by market capitalization was carried by users already participating in the network.
Surprisingly, the study found that Ethereum was the cryptocurrency that drove the market growth in August 2020. The reason is the boom in the DeFi space.
Reasons for growth
At the same time, January 2021 was the best month for Bitcoin in terms of increasing the number of users. On this metric, Ethereum shows an increase of 13.1% during the same period. This figure has increased with the sustained rally in the price of Bitcoin.
In January 2021, the deposit rate for Bitcoin users stood at 28%. It had a total number of non-overlapping addresses of 3,336,825. Ethereum, meanwhile, recorded a deposit rate of 33% with 910 non-overlapping addresses. 4.7 million addresses in total were on some exchanges.
The study indicates that the increase in crypto adoption can be attributed to 3 key events. Thus, the study confirms the theory of the crypto community. According to the latter Grayscale and MicroStrategy have the greatest impact on the price of Bitcoin.
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