Adoption of Bitcoin and Ethereum continued to grow in 2022 despite the bear market conditions and the collapse of several crypto firms, according to a report by Coingecko. Despite a significant drop in value for both currencies, with Bitcoin and Ethereum losing over 60% in value, investors continued to make significant investments in these flagship digital currencies.
According to the report, the number of addresses holding at least $1000 of either crypto asset increased by 27% in 2022. This growth was consistent throughout the year, with the number of addresses holding 0.1 BTC (approximately $1000) increasing to 4.2 million as of December 31st, from the 3.4 million recorded on January 1st. Similarly, addresses holding 1 ETH (with a minimal value of $1000) rose from 1.41 million to 1.73 million over the same period.
Coingecko also noted that the adoption rate of the top two digital assets grew to its highest level in the fourth quarter of the year, coinciding with the collapse of a major crypto empire. During this period, addresses holding 0.1 BTC grew by an average of 7.3% each quarter, with the adoption rate jumping to 9.7% during the collapse. Additionally, addresses holding 1 ETH rose by an average of 7% each quarter and surged by 10.4% during this period.
Ethereum’s higher adoption rate was tied to the completion of its migration to a proof-of-stake consensus mechanism in September. This move was seen as a significant step towards increased scalability and security for the network.
Despite the bear market conditions in 2022, Bitcoin and Ethereum have seen a resurgence in value over the past month. Both currencies have risen by over 30% and have returned to their pre-collapse levels. Bitcoin has traded above $23,000 while Ethereum has risen above $1,600 for the first time since September 2022.
The run has also spread to other digital assets like Aptos’ APT token, which surged to a new all-time high. Solana’s SOL and FTX’s native token, FTT, were also major beneficiaries of the price bump. Furthermore, the total crypto market cap for the industry reclaimed the $1 trillion mark amidst the bull run.
In conclusion, despite the bear market and the collapse of several crypto firms, adoption of Bitcoin and Ethereum continued to grow in 2022. The adoption rate of these two digital assets reached its highest level in the fourth quarter of the year and has continued to grow despite the market conditions. Bitcoin and Ethereum have seen a resurgence in value over the past month and have returned to their pre-collapse levels. The crypto market as a whole is also showing positive signs, with the total market cap reclaiming the $1 trillion mark.
