In January 2021, the number of cryptocurrency users reached 106 million, according to a report by Crypto.com, a cryptocurrency payments platform.
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Analysts studied data from 24 Bitcoin exchanges. In January, new users rose by 15.7%, while in the previous three months growth stood at 0.8-1.3%.
The researchers say the positive dynamics could have contributed to Bitcoin’s rise to new all-time highs.
Analysts also cited the DeFi summer, the addition of PayPal the ability to buy and sell bitcoin, and looser restrictions on the use of cryptocurrencies.
If in August the market was fuelling the hype around DeFi protocols, in January growth was driven by rising institutional interest. As an example they cited the activity of the company MicroStrategy.
Crypto.com estimates that in January Bitcoin was held by 71 million users, Ethereum — 14 million users. Over this period, the audience grew by 30.2% and 13.1% respectively.
Dynamics of Bitcoin and Ethereum users. Data: Crypto.com
Researchers pointed to the limitations of the methodology, which relies in part on on-chain data for Bitcoin and Ethereum. In particular, the sample may fail to accurately account for users operating through over-the-counter services.
Back in September, the University of Cambridge estimated that over two years the number of cryptocurrency users grew almost threefold—from 35 million to 101 million people.
In February, the bitcoin-payments service Bottlepay raised £11 million. The app enables real-time micro-payments in bitcoins for pennies and could become one of the drivers of audience growth.
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