According to Bitcoin analyst Willy Woo, the cryptocurrency industry could reach 1 billion users for the first time by the end of 2025.
Woo wrote to X on April 29: post:
“We plan to have 1 billion cryptocurrency users by the end of 2025. This chart shows results extrapolated from many independent previous studies. Binance estimates that 65% of cryptocurrency users own Bitcoin.”
According to Daniel Batten, investor and author of Bitcoin ESG Forecast, Woo’s chart is the first comprehensive model that aims to identify all existing users of cryptocurrency assets and predict the first billion adopters. Batten sent Woo an X reply.
“Incredible chart. “This is our first look at when we might cross the 1B threshold with full backtracking.”
The chart defines cryptocurrency users as unique entities that have completed know-your-customer (KYC) checks and have previously transacted on the blockchain.
Reaching one billion cryptocurrency users for the first time has long been considered a significant milestone for mainstream cryptocurrency adoption. Mainstream adopters can bring in new capital inflows, which is important for the price appreciation of digital assets.
Related: How high can Bitcoin go? New BTC price prediction sees cycle high at $180,000.
Will the industry reach 1 billion cryptocurrency users by 2025?
According to a January 2024 report from Crypto.com, the number of cryptocurrency owners will increase by 34% to 580 million in 2023.
Bitcoin (BTC) holders increased 33% from 222 million in January to 296 million in December 2023, accounting for 51% of global cryptocurrency holders. The report notes that developments around Bitcoin exchange-traded funds (ETFs) have been a key catalyst for user growth.
However, reaching the first billion from the current 580 million users would require a 72% increase, which seems unlikely based on last year’s growth.
In a joint 2022 report, Boston Consulting Group, the world’s largest management consulting firm, along with Bitget and Foresight Ventures, estimate that the first billion cryptocurrency users will be reached by 2030.
The report compares the internet adoption curve of reaching 1 billion users with a current cryptocurrency holder and a non-zero Ethereum address balance, assuming that current cryptocurrency adoption rates continue.
According to BCG, cryptocurrency adoption is still low and there is “plenty of room for growth.” The consulting giant estimates that only 0.3% of individual assets are invested in cryptocurrencies, compared to 25% in global stocks.
Related: Lido Finance accelerates the growth of DeFi by securing 1 million validators.