The number of new users on cryptocurrency exchanges has skyrocketed alongside the market rally, according to data from various platforms.
Crypto exchanges are seeing a tremendous surge in their user numbers.
Posting on Twitter, market analyst Willy Woo found that there are roughly 35,000 new daily users on-chain. This could translate to approximately 100,000 new users spread across cryptocurrency exchanges every day.
New Crypto Highs Bring New Crypto Users
The data, taken from Glassnode, shows a remarkable rise in the number of users from about the time the market began its rally in December 2020. The correlation is clear — as the price has gone up, so has the number of users.
Several exchanges and cryptocurrency platforms have reported an increase in the number of users and volumes. This is not surprising and mirrors the rise in users during the 2017 bull run.
Institutional investments have also hit a new high, with the number rising from roughly $37 billion to $55 billion this year. Grayscale Investments has been one of the biggest investors in this regard. The investment firm has been responsible for multiple large Bitcoin purchases in the past year.
Institutional investment has helped bring legitimacy to the crypto market. The entry of Tesla and Microstrategy has injected the market with new life, convincing on-the-fence investors to join. This has also given Bitcoin some appreciation from major banks and institutions.
JPMorgan Chase, for example, has given Bitcoin a price target of $146,000, though it expects BTC to drop slightly after. Citibank has predicted an even more ambitious number, setting a price of $300,000 by 2023.
Is Mainstream Adoption Around the Corner?
Investors and market enthusiasts are hoping that these developments will lead to mainstream adoption. To a degree, this has already happened. Most notably, NFTs and DeFi have started to make their way into the minds of the general public.
NFTs, in particular, are being warmly received by incumbent companies. From Elon Musk to the NBA, major names are beginning to integrate crypto assets with digital art and sports highlights, and investors are lapping it up.
The interest in NFTs has risen to the point where it has overtaken both blockchain and cryptocurrencies in terms of Google searches. Search engine results are also a good indication of the interest in the market, as evinced by 2017’s explosion in searches for Bitcoin.
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