Zinger Key Points
- Cryptocurrency owners across the industry are seeing an average monthly growth rate of 2.8% with 575 million as of November 2023.
- Trading volumes in the industry also witnessed a significant double growth from the start of 2023.
With the year 2023 witnessing extensive global adoption in the crypto and digital assets space, crypto users worldwide have experienced growth to date and are anticipated to scale up further in the upcoming year.
What Happened: Bitfinex Alpha, in its recent report, states that the outlook for the year 2024 for Bitcoin BTC/USD and crypto assets is positive.
Adoption in the crypto industry has peaked, with the total number of cryptocurrency owners reaching 575 million by November 2023, compared to 432 million in January 2023. This reflects a monthly average growth rate of 2.8%.
Bitfinex estimates the global number of cryptocurrency owners in 2024 to range between 850 and 950 million, with a monthly growth rate increased to 3.8%-4.4% (based on the 2021 bull market as a reference point). The scenario assumes that current bullish market conditions will extend throughout 2024.
The report foresees the total market capitalization of the crypto market almost doubling to $3.2 trillion in the next year from the current $1.66 trillion, as the Fear and Greed Index is expected to swing to extreme greed in 2024. Currently, the market is in the Greed space with a score of 75.
Read Next: Crypto's Pivotal Year: FTX Trial, Bitcoin ETF Rollercoaster And More Stories From 2023
Why It Matters: Trading volumes have rebounded from prior-year levels. In November 2023, CCData indicated that centralized exchanges witnessed $3.61 trillion in spot and derivatives trading volume, compared to $2.9 trillion in January 2023.
Notably, in September 2023, after the G20 closed on crypto regulation standardization, the Bitcoin network noted 265,000 new addresses in a 24-hour time frame, as reported by FXStreet. This marks the second-highest single-day surge in the token’s history and the largest in five years.
Based on Henley & Partners’ Crypto Wealth Report, despite millions of crypto users, only around 22 people have crypto holdings worth at least $1 billion, with only six having investments in Bitcoin.
Also Read: 99% Of Financial Services Companies Pursued Crypto Projects In 2023: Paxos
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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