According to researchers at Andreessen Horowitz (a16z), a well-known cryptocurrency venture capital firm, there are millions of “real” crypto users each month. However, accurately counting the number of crypto users can be difficult due to factors such as individuals creating multiple addresses for security purposes or airdrop scanning.
To determine the number of crypto users, the researchers eliminated addresses that receive funds from distribution contracts and automatically distribute to other addresses. They also excluded addresses with very low balances at the beginning and end of September that engaged in a large number of transactions in a short period of time. One important aspect of their comprehensive analysis was minimizing the number of addresses belonging to the same users, as users can have multiple addresses across different crypto networks and exchanges.
Eddie Lazzarin and Daren Matsuoka attempted to make specific predictions using both on-chain and off-chain data sources. They noted that while users interacting through interfaces can handle a reasonable number of transactions within a specific timeframe, bots can operate at much higher frequencies.
Based on their analysis, a16z researchers determined that there are currently 30-60 million genuine monthly crypto users. This represents about 14-27% of the 220 million monthly active addresses measured in September.
Furthermore, this number only accounts for 5-10% of the 617 million global crypto owners reported by Cryptocom in June. This difference suggests a significant opportunity for growth.
As new applications and consumer experiences become possible through infrastructure improvements, there is potential to convert existing crypto investors into active users. The research highlights that innovative applications and improved infrastructure could lead to the re-engagement of passive crypto investors, which is crucial for expanding the user base in the sector.
Please note that the information in this article is not investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research.
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Disclaimer: The information provided in this article is not investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
