Curious about crypto? Here are some stats to provide an overview of the market

Digital currencies are now just as popular as any other asset class. Not everyone might use or have a positive view of crypto but everyone has heard about it, with the bulk of people having a slight idea about the Ethereum price.

However, for most people, crypto knowledge is often limited to some basic facts (and myths) about Bitcoin and the few market developments that get presented in mainstream media, like bearish and bullish trends affecting the Bitcoin or the Ethereum price, new launches, scandals, or other notable events.

From the outside, the crypto industry might seem like a very dynamic niche with a distinct futuristic appeal and abundant earning opportunities for those who are brave enough to take the leap. But once you get to dig a little deeper, you come to realise that the crypto market is a much more complex space made of layers upon layers of technological innovations, interconnected mechanisms, and countless variables that turn it into a real maze.

So, if you want to learn more about crypto but don’t want to get lost in the labyrinth of information and misinformation, you should start by checking out some key facts and stats about the industry. Keep in mind that the figures presented here reflect the latest information at the time of writing and values are bound to change over time.

A growing market

The fact that crypto has gone from an obscure innovation that raised eyebrows and was largely rejected to a highly popular and equally controversial financial instrument should give you an idea of how much the industry has evolved since the birth of Bitcoin in 2009. But to make it even more clear, we’ll provide some key numbers in this respect.

At press time, the global crypto market cap was valued at $3 trillion and, according to the latest forecasts, the market volume is projected to reach $45.3 billion in 2025.

As of 2023, there were approximately 9000 digital currencies available, although some sources believe the number to be closer to 20,000. However, a large percentage of the crypto projects launched so far are either inactive or have been abandoned, so the number of relevant cryptocurrencies is much smaller than the estimated total. The fact that the top 20 cryptos account for almost 90% of the market narrows down traders’ and investors’ options to a handful of digital assets.

In terms of market dominance, Bitcoin makes up about 60% of the market, while Ethereum comes in second with a 13% share. The crypto leader is trading at $89,998, with a market cap of $1,780.40B and year-to-date (YTD) gains of 112%, and Ethereum is valued at $3,088, with a market cap of $ 371.94B and YTD gains of 35%. The all-time highs for the two leading coins stand at $93,434 for BTC and $4,891 for ETH.

As for crypto ownership rates, there are currently over 560 million crypto users all across the world, and approximately 17% of US citizens, representing around 53 million individuals, own crypto. This proves that attitudes toward digital currencies are shifting and people are starting to embrace this new form of money despite the numerous obstacles standing in the way of mainstream adoption.

From means of payment to investment medium

Those of you who have heard about crypto’s humble beginnings probably know that digital currencies didn’t start as investment assets. Bitcoin, the first crypto to become available to the public, was created with the purpose of providing an alternative means of payment that would allow users to circumvent government control and conduct transactions freely and securely, without having to rely on financial institutions and third parties. 

But things took a different turn and crypto eventually became more useful as a store of value than a medium of exchange. Data from the US Federal Reserve reveals that only 2% of Americans used crypto to pay for goods or services in 2022 and it’s unlikely the figure has changed much since then. When it comes to popular e-commerce payment methods, statistics show that crypto and stablecoins account for less than 0.2% of global e-commerce transactions in the same year.

Although more and more businesses seem open to the idea of including crypto payments in their checkout options, at the moment there are little over 15,000 companies worldwide that accept Bitcoin, with 2,300 of them being based in the United States.

Volatility, lack of infrastructure, and discrepancies in crypto regulations across the world seem to be the main factors to blame for crypto’s inability to become a mainstream payment option. So even though the number of crypto users is increasing, this doesn’t mean that crypto is getting closer to achieving its original goal.

Volatility is the name of the game

When you say crypto, you say volatility. You can’t have one without the other, which is both a blessing and a curse. This core characteristic is the result of a combination of factors, including novelty, market sentiment, media coverage, regulatory changes, and macroeconomic factors that create a pretty shaky foundation for the crypto market.

Even if data indicates that price fluctuations have been less intense in recent years, owing to a maturing market, digital currencies remain extremely unstable, with an annualised volatility rate of approximately 80%. By comparison, traditional assets have much lower volatility levels, usually below 20%.

Bitcoin’s volatility is almost four times higher than that of gold and global equities. In 2021, the sharp decline of Bitcoin and other several cryptocurrencies led to a market loss of $150 million in a single day. This means that crypto can be a very risky but potentially rewarding investment. But on the other hand, these extreme price swings make it unsuitable for everyday payments.

While some of these statistics seem worrying, they are not meant to startle you, but to offer a fuller picture of the crypto market, with both pros and cons, so you know exactly what you’re getting into if you decide to enter the crypto space.