Altcoins, Not Bitcoin, Drives the Latest ‘Massive’ Surge in Crypto Adoption: Report
Crypto adoption has been growing at a rapid pace, and in June, the number of global crypto users reached 221 million, up from just over 66 million at the end of May 2020.
In the second half of 2020, the adoption accelerated, and while it took nine months to go from 65 million to 100 million, it only took four months for this to double to 200 million.
Interestingly, while Bitcoin drove this growth in the first two months of this year, “altcoin adoption in May led to a massive surge in crypto users, from 143 million at the end of April to 221 million as of June,” according to a report from Crypto.com.
Monthly growth in unique crypto users who have ever owned BTC was 30.2% in Jan., only to drop to 15.2% and 2.9% in Feb. and March, respectively, compared to 13.1% for Ether (ETH) in the first two months and 2.3% growth in March.
When it comes to the Q2, Bitcoin’s adoption jumped to 6.6% in April and 20% in May, only to decline to 5.8% the next month versus Ethereum’s unique user growth of 4.4%, 20.4%, and 16.1% in April, May, and June respectively.
When it comes to the top two cryptocurrencies, Bitcoin led the adoption growth from January to April due to institutions like PayPal, Microstrategy, Visa, and Mastercard joined crypto, but in May and June, Ethereum saw significant growth as institutional investors started favoring it.
However, Bitcoin and Ether are losing their market shares as investors get attracted to meme tokens and proof-of-stake (PoS) protocols, especially after Bitcoin mining came under more scrutiny for its energy-intensive proof-of-work (PoW) consensus mechanism, as per the report.
The percentage of Bitcoin owners in global crypto owners fell to 51% in June 2021 from 67% in January. As for Ether, it is down from 13% to 10% during the same period, while the collective ownership of other cryptos has jumped by 18% to 38% in these six months.
“Altcoin adoption was likely spurred by the influx of new users who were interested in tokens like Shiba Token (SHIB) and Dogecoin (DOGE), among others,” it noted.