2022 could be termed one of the worst years for crypto investors, with prices of top crypto assets dropping significantly and major industry players such as BlockFi and FTX imploding and filing for bankruptcy. However, despite the market events, crypto adoption among investors has not reduced.
According to a report by cryptocurrency exchange CryptoCom on January 19, global cryptocurrency owners increased by 39% in 2022, rising from 306 million in January to 425 million in December. The report revealed that the growth rate in August and September was “exceptionally strong” at 5% and 8.1%, respectively.
Ethereum Leads in Terms of Adoption
The report stated that Ethereum (ETH), the second-largest cryptocurrency, leads in terms of adoption for the year. ETH owners grew by 263% from 24 million in January to 87 million in December, accounting for 20% of global owners.
CryptoCom attributed the growth to “The Merge,” a major software upgrade that transitioned the Ethereum network from a proof-of-work (PoW) consensus model to proof of stake (PoS). The report also cited interest from institutional investors and the popularity of ETH liquid staking.
“Continued NFT momentum may have also helped drive Ethereum adoption in May. For instance, Yuga Labs cashed in US$300 million selling Otherside NFTs. Furthermore, Goldman Sachs offered its first BTC-backed loan, showing further signs of increased interest in crypto from Wall Street institutions,” the report stated.
Bitcoin Owners Grew by 20% in 2022
On the other hand, bitcoin (BTC) owners grew by 20%, from 183 million in January to 219 million in December, accounting for 52% of global owners. Per the report, the main catalyst behind the BTC adoption growth rate is the Central African Republic (CAR), making the leading digital asset a legal tender in April.
Ethereum’s monthly growth rates were higher than Bitcoin’s during the whole year except in April (when CAR made BTC a legal tender), according to the report.
Meanwhile, after seeing significant price drops in 2022, BTC and ETH are rallying in 2023, prompting speculation that the so-called “Crypto Winter” has ended. Since the start of the year, BTC is up more than 25%, hovering around $20,000, while ETH surged 30%, trading around $1,500.
