Crypto.com, a provider of cryptocurrency exchanges and debit cards, has released a new report that estimates that the total number of cryptocurrency users globally increased from 66 million in May 2020 to 106 million by January.

Given the difficulty of assigning unique cryptocurrency wallet addresses to a number of people, the Crypto.com method combines data in a chain with several mixed parameters to calculate the separate estimates of the two largest cryptocurrencies by market value, Bitcoin (BTC) and Ether (ETH). ). The result is an overall calculation that you can use to track trends in global user growth over time.

The number of cryptocurrency users worldwide is estimated at millions. Source: Crypto.com
During the last eight months, June 2020, August 2020 and January 2021 were the highest growth rates. Crypto.com usually notes that this increase is correlated with the strength of Bitcoin’s price, but sharing the data between the two currencies can provide more specific information.

In particular, the rollout in August 2020 was largely driven by Ether due to the popularity of decentralized financing. During the fall and winter months, PayPal began supporting U.S. cryptocurrency purchases in November 2020 and institutional accreditation from Grayscale and the high-value Bitcoin Microstrategy to drive wider adoption.

In January, the global number of Bitcoin users was estimated at 71 million compared to 14 million for ether. The number of users of each coin has increased significantly this month – 30.2% and 13.1% respectively.

While the trends seem clear, Crypto.com has noted some limitations and caveats that need to be considered with respect to the results. The method is based on Bitcoin and Ethereum on-chain data, reconciliation analysis and Crypto.com’s internal data, but is unlikely to effectively capture OTC users and OTC transactions.

Crypto.com also had to guess and estimate the number of online users who still own cryptocurrency today, compared to the amount they have probably already sold their holdings for. In addition, taking into account the sampling disorder (due to the use of some surveys and internal data), as well as possible differences between the total flow of deposits on exchanges, this should be taken into account. However, the report notes that an attempt was made to remove these exchanges using different streams from a list of 24 analyzed platforms.

Source: CoinTelegraph

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