Digital Currencies Continue to Perform
There were over 106 million crypto users in January 2021 due to soaring demand for Bitcoin and massive growth in the DeFi sector. The user deposit rate and on-chain activity of the world’s largest cryptocurrency have risen to a record high.
In a blog post, the Hong Kong-based firm, which provides crypto-related card, trading, and lending services, confirmed that its user base had doubled from 5 million to 10 million in only four months. The post also noted that revenue had risen 10x just in 2020.
Analysts from Crypto.com claim that the increase in adoption was influenced mainly by Bitcoin (BTC) adoption after its price skyrocketed earlier this year.
Interestingly, the second-largest cryptocurrency by market cap, Ethereum, has also driven the crypto market’s growth in August 2020, during the height of the DeFi mania.
Crypto Market’s Growth
The cryptocurrency market is on the rise since the start of 2021. The total market cap of digital assets shot from $750 billion to as high as $1.75 trillion within the last seven weeks.
Bitcoin, the world’s largest cryptocurrency, spiked above $58,000 on Saturday after the market cap of BTC crossed $1 trillion. Ethereum also registered an all-time high of $2,026 earlier this week.
The mainstream adoption of digital assets is mainly due to the involvement of institutional investors. Paypal Holdings Inc (NASDAQ: PYPL) opened crypto purchases to investors and the more extensive institutional adoption seen by Tesla Inc’s (NASDAQ: TSLA) $1.5 billion Bitcoin purchase.
MicroStrategy, Grayscale, and Square also accumulated more than $2 billion worth of Bitcoin in the last seven days.
Taking Advantage of Growing Digital Assets
Despite the uncertainty in regulations, the cryptocurrency population is multiplying. New retail and institutional investors are adopting the market to take advantage of the significant price growth in digital assets.
Set up in 2016, Crypto.com is one of the world’s most popular cryptocurrency apps working on its blockchain called Crypto.org Chain. A few days ago, the company announced it would be burning 70 billion CRO tokens in readiness for the project’s March 25 launch. They hope to represent the DeFi and NFT markets.
Crypto.com CEO Kris Marszalek said Crypto.com had demonstrated consistent double-digit growth rates for over two years, in all market conditions, driving 10x revenue growth in 2020. With the bull market, the company has noted growth accelerating even faster.
He added that the firm had more than tripled its employees’ size in 2020, increasing its workforce to more than 900 from 250.
The firm seeks to make strategic investments in developing DeFi and non-fungible token (NFT) solutions in the future.