Key Crypto Market Drivers
As per the report, certain factors were responsible for the sudden surge in the number of cryptocurrency owners, including the increased interest in Bitcoin (BTC) last month. The strong growth in Bitcoin adoption in January was reportedly fueled by institutional investors, such as Microstrategy and Grayscale, was pinpointed as the primary key drivers.
Other factors that drove more participants into the industry include PayPal’s addition of crypto offerings to its list of services and the ever-growing decentralized finance (DeFi) space that has continued to roll out notable projects lately.
Crypto.com broke down the total crypto holdings held by users into Bitcoin and Ethereum. The payment provider revealed in its findings that Ether championed the crypto market in August 2020, which saw the tremendous growth of DeFi during this period.
On the other hand, Bitcoin led the massive adoption of cryptocurrencies in January 2021 following months of intense price action and institutional investors’ entrance.
“What we notice is that periods of strong growth come after periods of strong price performance in Bitcoin,” excerpts of the report stated.
Meanwhile, this is not the first time that Crypto.com has conducted a study to determine the number of cryptocurrency users worldwide, with the current numbers revealing strong growth in the last year. A similar survey conducted in May 2020 revealed that there were only 66 million crypto users globally.
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