A study has suggested that the number of cryptocurrency users has increased during 2018, even when the market has been in a constant downward trend.In the first three quarters of 2018, the total number of digital asset users grew an impressive 63 percent on the 85 million figure in 2017. The study done by the Cambridge Centre for Alternative Finance has identified 139 million cryptocurrency users in 2018.
The number of verified users of cryptocurrencies almost doubled in the first three quarters of 2018 even as Bitcoin tumbled https://t.co/UViPzzYQy3— Bloomberg (@business) December 13, 2018
Conservative EstimatesResearchers state that these are lower-bound numbers and reflect a unique user base. This is important because user accounts do not translate to unique users. For example, an individual user can create multiple accounts with the same exchange if the service provider does not require users to prove their identity. Moreover, the number of KYC-verified users has also skyrocketed. From 18 million at the end of 2017, the figure now stands at 35 million. The user activity is impressive when you put it into the perspective of a cryptocurrency market drawdown in 2018. The typical cryptocurrency user is still very likely to be an individual — as in retail investor, consumer, or hobbyist — rather than a business client.
After Demand, Comes SupplyAnother interesting development in the crypto-asset market is that companies started offering multi-coin support. The share of companies in the storage segment that support at least three cryptocurrencies has doubled in 2018. Currently, 90 percent of all exchanges and storage companies offer multi-coin support. Furthermore, the study has identified that payment providers generally support fewer cryptocurrencies — which is understandable given the infancy of the market. [bctt tweet=”As the market contracted, the user base and crypto offerings expanded!” username=”beincrypto”] The crypto bear market has pushed out a lot of people that joined during the bull rally in 2017, but the space has certainly gained more than it has lost. If the positive trend in development and adoption continues, especially in a bleeding market, the subsequent progress will be reflected in the market as well. Will the user base continue to grow into 2019? Or will it halt as a consequence of the 2018 bear market? Tell us in the comments below!
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