2018 has been a terrible year for the crypto market so far, as almost all cryptocurrencies lost their 80-99% of their USD value recorded in January. This paints a very gloomy picture for the crypto industry, but all is not bad. Why? Because the statistics about the number of users show the crypto market is still growing at a rapid pace.
This piece of good news for the crypto industry came from the Cambridge Center of Alternative Finance, who revealed the fast increasing number of users in one of their recent studies. According to the report, there has been a 100% increase in the number of users in the first three quarters of 2018.
The report also revealed that the number of cryptocurrency users was only 5 million in 2016, that increased to 18 million in 2017, and now further climbed to 35 million in 2018. Even though this is the highest number of increase in any year, and the numbers also doubled in 2018, but the jump from 2016 to 2017 was three and a half times.
When it comes to the total number of cryptocurrency accounts, the number jumped to 139 million in 2018 from 85 million in 2017. Market experts believe that the number of increased users will play a key role in the market recovery, and this sharp increase is nothing but good news for the crypto industry that has been plagued by mostly negative news as of late.
The potential shortfall of this news is that growth in users might not necessarily indicate user adoption. The increase in new users can also be attributed to the increase in the number of retail investors instead of business clients and actual users of the technology.
Even though the growth rate is not as fast as we witnessed in 2017, the rise in the number of users in 2018 and the decline of the total market cap by ~80%+ is a negative correlation that is worth noting. Will this result in a market recovery in 2019? Time will tell.