According to researcher Kevin Wang, at Crypto.com, strong growth in Bitcoin adoption happened to be the main driver for the peak. Major events last year, such as PayPal’s decision to integrate crypto into its payment network and institutional adoption of cryptocurrencies fueled the surge. Other than BTC, the growth of DeFi allowed Ethereum to lead the crypto market’s growth in August 2020.
The months of June and August last year and January 2021 “were exceptionally strong months” in terms of a surge in crypto population. Wang noted that such periods of strong growth in adoption accompanied periods of strong price performance in Bitcoin.
To estimate the number of global crypto owners, the calculations were made through BTC and ETH on-chain data, separately, and combined with other parameters. Crypto.com stated that the findings were subject to some limitations and caveats.
The analysis is also built on Crypto.com’s own internal data, as well as on-chain data and survey analysis. But, this may not estimate OTC users and off-chain transactions effectively. The fact that sub-accounts in exchanges may not be reflected accurately was also noted. However, researchers assumed that all on-chain users still own crypto today, while others could have sold their holdings already.
Meanwhile, another survey revealed that Baby boomers and Gen X are “piling” into Bitcoin and other cryptocurrencies.
Nigel Green, CEO and founder of deVere Group said that the company’s global poll found that 70% of clients aged over 55 have already invested in cryptocurrencies or are planning to do so this year.
Green explained that while the crypto rally captured the attention of ‘digital native’ younger generations; older generations such as Boomers and Gen X recognized that “digital, borderless money is the way forward.”
“Social media hype and clickbait headlines” happened to be a catalyst for millennials and Gen Z to invest in Bitcoin. But respondents aged over 55 were interested in crypto due to a fear of currency devaluation – as central banks have historically printed more money to boost economies. Especially in wake of the pandemic. Green further commented:
They’re [older generations are] aware that if you are flooding the market with extra money, then in fact you are devaluing traditional currencies – and this, and the threat of inflation, are legitimate concerns, prompting them to seek out alternatives.