While Bitcoin Collapsed in 2018 Crypto Users Nearly Doubled

While Bitcoin Collapsed in 2018 Crypto Users Nearly Doubled

The crypto world gained 17 million new verified users in 2018, nearly a double from the 18 million in 2017 to current 35 million this year, according to the 2nd Global Cryptoasset Benchmarking Study by the University of Cambridge.

According to the study, millions of new users entered to the crypto ecosystem, however, most of them remain passive, “total user accounts at service providers now exceed 139 million with at least 35 million identity-verified users, the latter growing nearly 4X in 2017 and doubling again in the first three quarters of 2018.”

“Only 38 per cent of all users can be considered active, although definitions and criteria of activity levels vary significantly across service providers,” the study highlights.

It could be seen as contradictory, but the crypto market is healthy as crypto users have nearly doubled in 2018, while Bitcoin and altcoins have lost nearly 80% of its value. What’s the meaning of this?

One conclusion analysts have made is that the increasing number of users will provide a signal that the deep market downturn will eventually stop and it will recover at a certain point.

Remember that most users are speculators and long-term investors that are driven by cryptocurrency volatility.

Crypto users, accounts, regulation, and multi-coin solutions

On this regard, multi-coin support is expanding at a faster pace in 2018, as it has nearly doubled from 47% of all service providers in 2017 to the 84% of firms that provide multi-coin platforms in 2018.

“A trend primarily driven by the emergence of common standards on some crypto asset platforms (e.g. ERC-20 on Ethereum) that has resulted in a rapid increase in the supply of tokens, airdrops and forks,” the study says.

On platforms, the number of crypto accounts has increased too, that being said, remember that a user can hold multiple accounts. According to the study, data indicates that majority of users are individuals that could be “hobbyist retail investors, consumers, or users seeking a better investment or payment alternative.” But not business or funds clients.

Finally, the report found that self-regulation efforts are reflecting a growing industry maturity. “The increasing number of self-regulatory initiatives, combined with the emergence of sophisticated and professional services, reflect the growing maturity of the industry.”

Since the first months of 2017, the crypto ecosystem market capitalisation jumped from $30 billion to over $800 billion at its peak in January 2018, until it came down again to move around $200 billion by the time of publication.

The report, wrote by Michel Rauchs, Apolline Blandin, Kristina Klein, Gina Pieters, Martino Recanatini, and Bryan Zhang, gathers survey data from more than 180 crypto assets companies and individuals, covering 180 startups of 47 countries in five world regions.

The Cambridge study was focused on mining, exchange, storage, and payments, and regulation.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

Bitcoin,CoinMarketCap,Ethereum

Cryptocurrency Market Cap Jumps Past $2 Trillion

Cryptocurrencies continue to make headline news around the world as the total market cap surpassed $2 trillion on Monday. Supported by increased interest from institutional investors, celebrities, and retail investors, digital coins are now worth more than Apple Inc. Bitcoin has, once again, played a major role in the sector’s market cap. The world’s first […]

6 April, 2021
Digital Currency,Ethereum,Stablecoin

VISA Set To Support Cryptocurrency Settlements

The global payments corporation, VISA, announced on Monday that it is making preparations to allow USD Coin (USDC) to settle transactions within its network. This move is being viewed by industry analysts as yet another clear sign that cryptocurrencies are being accepted by major institutions within the traditional financial industry. USDC was selected by VISA […]

30 March, 2021
Casino,Ethereum,Gambling

CasinoFair Temporarily Shuts Down Amid Network Congestion

The popular cryptocurrency casino, CasinoFair, has announced in a recent blog post that it will be temporarily stopping its gaming services. Citing unsustainable congestion on the Ethereum network as the main reason for this pause, the casino reassured its players that it is “actively researching solutions and hope to be back with a new range […]

26 March, 2021
Bitcoin,Coinbase,CoinMarketCap

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest […]

1 March, 2021
Cybercrime,Scam,Trezor

Trezor Warns Users About Fake Mobile App

Trezor is warning users of a malicious mobile application featured on Google Play which appears to be associated with the wallet provider. At least 1,000 users have already downloaded this software, and it is likely that some have unwittingly provided their seed phrase to unlock their funds. Both Trezor and SatoshiLabs have confirmed the existence […]

26 January, 2021
Bitcoin,eToro,Trading

eToro Temporarily Raises Minimum Deposit To $1,000

For the past few weeks, the increase in Bitcoin’s price has led to a massive interest in cryptocurrency trading. eToro has been overwhelmed by new registrations and has decided to temporarily raise the minimum deposit from $200 to $1,000. Although 2021 has barely gotten started, it promises to be an exciting time to invest in […]

11 January, 2021
Bitcoin,Investment,Trading

Global Cryptocurrency Market Value Surpasses $1 Trillion

Thursday has proven to be a monumental day for cryptocurrencies as the world’s combined value tops the $1 Trillion mark. Energised by a substantial rise in the value of Bitcoin in recent months, the volatile crypto market has reached a once-unreachable value. Following the latest Bitcoin Halving in May 2020, the world’s largest digital token […]

10 January, 2021
Sponsored

Victory over virus: SiGMA Virtual Expo hosts 100+ exhibitors

SiGMA Europe and AIBC Virtual Expos launch with record breaking attendance, providing a cure to the industry’s events sector In the light of this year’s changes in our everyday lives, SiGMA was close to having to stop doing what it does best; creating networks for people through the company’s iconic physical events, but luckily, the […]

26 November, 2020