According to Crypto.com’s July 2021 study, the months in the first half of 2021 as well as May “were exceptionally strong months, driven by Bitcoin’s stellar performance.” Global crypto users grew from 106 million in January to 125 million in February 2021. By the end of March 2021, crypto users grew by 4 million to 129 million users and by the end of April 2021, it hit 142 million.
In the second quarter of the year, the growth was extraordinary, hitting a total of 221 million crypto users by the end of June 2021. In May, up to 61 million new crypto users got into crypto, growing from 142 million to 203 million crypto users. In June, up to 18 million new crypto users further pushed up the population of crypto users to 221 million.
As noted by Crypto.com, “it only took four months to double the global crypto population from 100 million to 200 million. By comparison, it took nine months to reach 100 million from 65 million since we began tracking these numbers.”
Interestingly, as the population of crypto users grows, the percentage of bitcoin and ethereum users appears to be dropping. According to Crypto.com study, “[n]ew challengers like Proof-of-Stake protocols and meme tokens showed great potential in May, especially after Bitcoin mining came under more scrutiny.” In May, Elon Musk had criticised the negative environmental impact of bitcoin mining. This spurred more interest in altcoins, especially meme coins such as Shiba Inu (SHIB) and Dogecoin (DOGE). Bitcoin market share has dropped from 67% in the new year of 2021 to 51% in June 2021. At the time of writing this piece, bitcoin’s dominance is 46.13% (CoinMarketCap). As more interest in altcoins 1 grows, bitcoin dominance is expected to keep dropping.
Crypto exchanges included in Crypto.com’s “Measuring Global Crypto Users” study include Binance, Bitfinex, Bittrex, Crypto.com, FTX, Gemini, Huobi, Kraken, KuCoin, and Okex, among others.
What could this Crypto.com study mean to crypto asset buyers?
Altcoins
- Altcoins are, by definition, any cryptocurrency that isn’t bitcoin, which means there are a lot of them: close to 8,000, according to CoinGecko. And considering bitcoin currently makes up [less than half] of the total crypto market cap, more than half of the crypto market’s value is floating around in altcoins. But all altcoins aren’t created equal. Some cost pennies, while others are hundreds of dollars per coin. Some have promising long-term applications, others are a flash in the pan. Many aim to build on bitcoin’s successes, others claim to solve its problems. All this adds up to an altcoin universe that’s vast and full of risk. (Nerdwallet)
