Cryptocurrency Adoption Soared Throughout 2022 Despite Crashing Markets – Report

Although 2022 was a difficult period for many cryptocurrency market participants, whether in terms of prices, bankruptcies, high-profile arrests, or legal action, cryptocurrency adoption continued to increase and increase sharply throughout the year.

As it happens, the total number of global cryptocurrency holders grew by 39% in 2022, rising from 306 million in January 2022 to 425 million in December of the same year, according to a new research report published by Crypto.com On January 19th.

The total number of cryptocurrency holders is in the millions. Source: Crypto.com

Ethereum leads the charge

Specifically, the most impressive gains were seen in the adoption of Ethereum (ETH), which increased the number of holders by a whopping 263% over the year, starting at 24 million in January and ending at 87 million in December, which is a 20% increase for cryptocurrency holders. universals.

As for the reasons behind the accelerated rate of Ethereum adoption, the report cites the anticipation and implementation of consolidation as the main catalyst, citing the network upgrade that marked its transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus algorithm, and has been completed. in September.

In addition to the consolidation, the report notes that interest from institutional investors, the momentum of non-fungible tokens (NFTs), and the popularity of ETH liquid storage have also contributed to Ethereum’s high adoption rate. With the announcement of the issuance of deposited ETH in March 2023, this interest is likely to grow further.

The number and growth rate of Ethereum owners. Source: Crypto.com

Meanwhile, Bitcoin (BTC) posted less impressive results than Ethereum in 2022, but increased nonetheless, as the number of Bitcoin holders grew by 20% — from 183 million in January to 219 million by the end of the year — accounting for more than Half (52%) of global cryptocurrency owners.

The growth in Bitcoin’s adoption rate was likely boosted by Central African Republic (CAR) becoming the second country after El Salvador to adopt BTC as legal tender, as well as Goldman Sachs (NYSE:GS) offering its first BTC-backed loan.

Ethereum, bitcoin price analysis

In fact, both Ethereum and Bitcoin have had a rough year in terms of their prices, with ETH dropping more than 68% and BTC 65% in 2022. A brief rally after 2023 was halted by the announced bankruptcy of crypto lender Genesis.

At the time of publication, both assets are down on the daily charts, with ETH losing 4.08% on the day, currently trading at $1,517, while Bitcoin is down 2.74% in the past 24 hours, at press time changing hands to a price of 20,707 US dollars.

Ethereum price chart 1 year. Source: quinphone

Interestingly, Ethereum outperformed the leading decentralized finance (DeFi) assets in the second half of 2022, with a return of 22.4%, while BTC achieved a return of -10.8%, Coinphony reported in December.

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After Cryptocurrency Adoption Rise Throughout 2022 Despite Crashing Markets – The report appeared first on Coinphony.

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