The growth in the active user exchanges in the crypto world – This is a difficult question to answer.
The Crypto world often goes through fluctuations. The markets can recede within minutes and rise in the next. It’s an ongoing process. Finding the number of active user exchange growth is a difficult metric.
Metrics like the number of transactions and the number of crypto wallets are used. Several people joining the marketplace are the main criteria to measure growth. Similarly, we will look at the other metrics as well, and in some cases, there is a comparison with the past few years.
Let’s look at some data to find what’s the probable metric.
Understanding active user exchange
With the growth and popularity of the web 3.0 industry, more and more people are involved in the crypto world. Statistics say the active user exchange base in 2019 was 6%. This 6% has increased to 16% within 3 years. Nigeria reported the highest growth in active users.
However, the growth isn’t constant all across the world. But there is a pattern that follows everywhere. No matter it’s benefiting or not, there is a significant shift in people regarding crypto coins.
Asia, Africa, and South America are probably the countries with the highest number of users. Reports and Surveys concluded the highest number of virtual money transactions. Nigeria has 45% of the population owns some cryptocurrency, while Thailand, Turkey, and Argentina hold second, third, and fourth positions, respectively.
To summarize, active users exchange are increasing. There are almost 700,000 – 100,000 active bitcoin users per day. Coinbase, one of the most used crypto marketplaces, registered 98 million registered users in 2022. There has been a huge spike in the user base since 2021. $2 million users created an account within a year.
Coinbase numbers are based on the number of wallets. Although, inactive users, other coins, multiple accounts, and fake accounts are always included. The number is believable to some extent, but not entirely.
In all cases, there are many obvious predictions and also questions. What’s the future of crypto? Are active users going to show the same growth? Or is there room for an exception? Which cryptocurrency will blast in the next few years?
All these contradictions are answerable. Analyzing crypto markets is one of the key factors in finding where users’ growth is heading. The thing is to find what’s are the future aspects of cryptocurrencies. Let’s compare the trends from the last few years.
The growth in cryptocurrencies
Bitcoin, Ethereum, and Tether are three core crypto coins that hold the most value in digital currencies. We can estimate the growth of crypto accurately by analyzing these three key coins and then focusing on predicting the essential outcomes.
- Bitcoin gained an all-time high value in 2021, 68,000 USD in November 2021. Value dropped from 65,000 to $20,000 in October 2022.
- In 2020, Ethereum was valued at $186.26 at the start of the year. By December value touched $746.06. Following the trends, Ethereum’s value spiked to $4,000 by May 2021. Now, it’s back to $3000.
- Tether is of less value as compared to the other coins. Tether crossed $1.5USD in the year 2020. As of the current scenario, the tether costs around $1.00. Coin value almost remained constant throughout the years.
Bitcoin and other broad crypto markets are sinking this year. Crypto markets are volatile, and short-term slow down are always there in the market. As experts say, in the upcoming year, Bitcoin might even hit $100,000.
While that might not be something happening overnight, especially in the current economy, there was a similar situation in 2011. Multiple huge spikes and pullbacks were recorded in the following year. People investing in crypto should go for long-term goals rather than short-term goals.
The decline in cryptocurrency growth may slow down active user growth. Investors are recommending investing in crypto but don’t make it the primary source.
Cryptocurrency and the future of money
If you find yourself in a dilemma “ What’s the future of active user exchange?” then it’s likely you should know the possible reason that is slow downing the growth.
It’s crucial in this situation. Therefore, before coming to any conclusion, let’s find out. The growth in active user exchange is directly linked with cryptocurrency growth. Below we mentioned the upcoming challenges and how to overcome these hurdles.
- Government rules and Policies can be the biggest hurdle. Policies have the power to slow down crypto growth. For instance, when the Indian government imposed taxes on the crypto exchange, there was a significant drop in the Indian crypto market.
- The government has the authority to ban decentralized currency. Or the other case may be government will take over the currency. Bitcoin, Litecoin and Ethereum, are all these currencies are decentralized with no proper publishing body.
- Most digital currencies are unpredictable. The changing value of cryptocurrency may force people to use traditional payment methods. One day crypto was skyrocketing, and the other day was crashing down.
As per the current scenario, digital currency is skyrocketing. Chances are growth in the active user exchanges may be stagnant for some time, but it will boom once all the issues mentioned above are cleared.
No matter how accurately we analyze trends, there is always room for unpredicted outcomes.
Within the last year, there is huge growth in active user exchange. But how long all this will last is still uncertain.
No one knows what’s the future. Crypto’s active user base entirely depends on the future of cryptocurrency.
If the market rises, users will also increase. What matters is how the utility and use cases of crypto increases over time.