Crypto Market

Bitcoin and cryptocurrency use reaches all-time highs

  • In September, 220 million addresses interacted with a cryptocurrency network.

  • The number of active addresses has tripled since September 2023.

The number of cryptocurrency addresses that are active monthly has reached a new all-time high of 220 million. This figure triples the amount at the end of last year, indicating significant growth in activity in the market.

These data are based on a new investigation published on October 16 about the market in September. This was made by a16zcrypto, a venture capital fund that invests in startups of cryptocurrencies and web3.

It should be noted that a cryptoasset address is a unique identifier that allows users to send and receive digital assets such as bitcoin (BTC). It is made up of a series of alphanumeric characters, which functions as a kind of “account number” that does not reveal the user’s identity.

The number of monthly active addresses refers to the number of addresses that have had a cryptoasset transaction in the month. Something to keep in mind is that this figure does not necessarily correspond to the number of people who have crypto assets. This is because each user can have several addresses at the same time.

According to a16zcrypto, the increase in monthly active addresses of crypto assets is comparable to the growth of internet users in its early phase. Precisely, the number of internet users from 1992 to 1998 is similar to the number of active cryptoasset addresses from 2018 to 2024.

If this similar trend continues, By 2031 there will be more than 1 billion active crypto asset addresses. This can be seen through the following graph, which shows their number (orange line) in comparison to that of internet users (green line).

Internet users vs. active crypto asset addresses per month. Source: a16zcrypto.

The explosion of activity is mainly due to Solana, which counted around 100 million active addresses. The next largest network is Base with 22 million active addresses. Although many others dominate part of the activity.

“Addresses are proliferating around many blockchain networks,” comments a16zcrypto. The following graph puts this situation in perspective. Displays the number of active addresses in networks that support Ethereum using the Ethereum Virtual Machine (EVM) and those that do not.

Monthly active cryptoasset addresses by network. Source: a16zcrypto.

Meanwhile, The number of monthly users of cryptoasset mobile wallets reached an all-time high of 29 million in June 2024. This metric, unlike addresses, measures the number of individuals who interact with mobile crypto wallet applications, according to the company’s research.

This happens despite the fact that crypto asset prices remain in a corrective period since bitcoin set a new record seven months ago. Although, as CriptoNoticias reported, the market is showing signs of breaking this trend upwards, with a recent reinforcement of demand.

Argentina is the Latin American country with the most mobile wallet users

Research from a16zcrypto shows that the largest proportion of monthly cryptoasset mobile wallet users is in the United Statesrepresenting 12% of the total. Although, its share has decreased in recent years as cryptocurrency adoption grows globally and as more projects seek regulatory compliance outside the country.

After the United States, the country with the highest proportion of mobile wallet users is Nigeria. It “has sought to provide regulatory clarity, including through regulatory incubation programs, and has seen significant growth in consumer uses such as bill payments and retail purchases,” a16zcrypto says.

The list is followed by India, the country with the largest population in the world, and Argentina, where extreme inflation and restrictions on the free trade of currencies have led to the adoption of cryptoassets. This can be seen in the following image, which places the South American country as the one with the highest proportion of monthly users of mobile cryptoasset wallets in Latin America.

Countries with the highest proportion of active mobile wallet users. Source: a16zcrypto.

“Many residents have flocked to cryptocurrencies, especially stablecoins, amid the devaluation of the national currency,” the investment company details about adoption in Argentina.

A total of 30-60 million monthly active cryptocurrency users are estimated

Based on a combination of measurements, a16zcrypto estimates that There are between 30 and 60 million monthly active cryptocurrency users worldwide. This proportion represents only 5-10% of the total number of the 617 million global cryptocurrency owners estimated by Crypto.com in June 2024.

“The disparity underlines the great opportunity to engage, and re-engage, passive cryptocurrency holders,” the investment company concludes. This is something that he hopes will be established over time with greater infrastructure in the industry.

“As significant infrastructure improvements enable new and engaging applications and consumer experiences, more inactive cryptocurrency holders could become active users.”

a16zcrypto, venture investment fund.

Distinguish in this regard that The network that experienced the largest change in the total share of builder interest is Solana. According to their survey, the proportion of developers interested in building on the network grew to 11.2% this year from 5.1% last year.

Base saw the next biggest jump, its total share growing to 10.7% from 7.8% last year. And this is followed by Bitcoin, which increased to a total share of 4.2% from 2.6% last year.

However, Ethereum continues to attract the majority of total developer interest at 20.8%, followed by Solana and Base, as the following graph shows.

Cryptocurrency networks with the most interest from developers. Source: a16zcrypto.

With the growing activity and interest of builders in various networks to create infrastructure for the industry, it is expected that the number of active users of crypto assets will continue to rise.

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