The crypto market was in a bear market for most of 2022. However, a new report has revealed that the total number of global crypto owners has increased by 39% over the year. This number increased from 306 million in January to 425 million at the end of the year.
ETH had a higher adoption rate than BTC.
While the number of crypto owners increased globally, Crypto.com notes. Reports That Ethereum A higher adoption rate was recorded. Bitcoin. Over the year, Ethereum amassed 263% more owners, recording 24 million in January and 87 million in December, accounting for 20% of total crypto owners.
Comparatively, bitcoin saw a 20 percent increase from 183 million in January to 219 million in December, accounting for 52 percent of global crypto owners.
was largely attributed to the significant adoption experienced by Ethereum. integrationwhich went live last September. Merge moved the consensus algorithm on the Ethereum blockchain from proof-of-work to proof-of-stake.
Another reason could be the growing interest of institutional investors, as reported by Crypto.com. This, along with the momentum of NFT and the growing interest in ETH liquid staking, led to greater adoption of Ethereum over Bitcoin.
Therefore, the adoption rate of Ethereum increased from 8% to 20% during the year, but the most significant increase was around August and September. Bitcoin adoption, on the other hand, rose in April but gradually fell to 52 percent by the end of the year.
Increased mainstream adoption saw BTC rise
Despite the lower adoption rate compared to Ethereum, Bitcoin still grew. Its 219 million adopters are more than half of the global crypto owners.
The Central African Republic (CAR) likely contributed to greater adoption by adopting BTC as legal tender. The move made them the second country after El Salvador to make crypto legal tender, allowing its use for transactions.
Goldman Sachs’ offering of its first BTC-backed debt could lead to further adoption.
Also, adoption increased during the FIFA World Cup Qatar 2022. Around this time, there was also an increase in financial institutions that offered crypto services to their customers. These included institutions such as MoneyGram, Union Bank of the Philippines and Fidelity.
During this year, both Ethereum and Bitcoin dropped in value. ETH fell more than 68%, while BTC Dropped After 65% of several exchanges collapsed and stablecoins de-pegged, creating distrust in the crypto market.
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