According to researchers at Andreessen Horowitz (a16z), a well-known cryptocurrency venture capital firm, there are millions of active cryptocurrency users each month. However, accurately determining the number of crypto users can be difficult because individuals often create multiple addresses for security or airdrop scanning purposes.
To calculate the number of crypto users, the researchers excluded addresses that receive funds from distribution contracts and automatically distribute to other addresses. They also disregarded addresses with very low balances at the beginning and end of September that engaged in numerous transactions within a short period of time. A key aspect of their analysis was minimizing the number of addresses belonging to the same users, as users can have multiple addresses across different crypto networks and use various exchanges simultaneously.
Eddie Lazzarin and Daren Matsuoka attempted to make predictions using both on-chain and off-chain data sources. They observed that users interacting through interfaces can handle a reasonable number of transactions within a specific timeframe, while bots can operate at much higher frequencies.
Based on their analysis, a16z researchers found that there are currently 30-60 million genuine monthly crypto users. This represents about 14-27% of the 220 million monthly active addresses recorded in September. Additionally, this number only accounts for 5-10% of the 617 million global crypto owners reported by Cryptocom in June. This suggests that there is a significant opportunity for growth in the sector.
As infrastructure improvements enable new and exciting applications and consumer experiences, there is potential to convert existing crypto investors into active users. The research highlights the importance of innovative applications and improved infrastructure in driving the re-engagement of passive crypto investors and expanding the user base in the cryptocurrency sector.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
