Digital asset adoption is rising and reshaping the financial landscape as we know it

In the past few years, there has been a significant increase in the global adoption of crypto, particularly as this distinct asset class has increasingly become part of traditional finance (Trad-fi) systems today. Research indicates that by 2024, an astonishing 6.8% of the world’s population – approximately 560 million people own cryptocurrencies.

Narrowing down on the western hemisphere, the United States has continued to be a frontrunner in this ongoing digital race, with a remarkable 40% of American adults now holding some cryptocurrency or the other (up from 30% in 2023). Not only that, the ownership demographic landscape is also evolving rapidly, with women’s ownership rates surging from 18% in 2023 to 29% in early 2024. 

Number of verified crypto users between 2016 – 2023 (source: Techreport)

Globally, too, a growing number of countries are embracing cryptocurrencies at varying levels. India, for instance, currently lays claim to more than 93.5 million crypto users, while Vietnam boasts of an impressive ownership rate of 21.19% (followed closely by the U.S. at 15.56%).

Lastly, viewing this from an external perspective this growth is attributed to the resilience in the cryptocurrency market. After a challenging 2022, the market has progressed well all through 2023-2024, propelled by the introduction of various Bitcoin ETFs and improvement in crypto regulatory clarity.

Global BTC ownership rates (source: Crypto.com)

Cultivating trust and accessibility

With the crypto realm having matured greatly in recent years, many companies are now making use of innovative strategies to attract new users while retaining their existing clientele. At the forefront of these efforts stands user education. In recent years, firms like Coinbase and KuCoin have all started offering comprehensive tutorials and webinars to demystify the world of digital assets for potential investors.

Similarly, regulatory compliance is another domain that has been seen by many as a cornerstone of trust-building and user acquisition. To this end, entities like Binance have adapted their operations to align with local regulations. The exchange’s recent registration with India’s Financial Intelligence Unit (FIU), exemplifies this ideal.

Moreover, platforms like Crypto.com offer reward programs where users earn cashback in crypto for transactions made using their cards, incentivizing spending and encouraging users to remain engaged with the platform.

Apart from such traditional efforts, companies like VALR, Africa’s largest cryptocurrency exchange, have recently taken user engagement to a completely new level. The exchange’s innovative “Global Treasure Hunt” competition, for example, has been designed to be a four-month extravaganza — offering both new and existing users the chance to earn ‘Mystery Boxes’ containing a share of $80,000 worth of cryptocurrency rewards.

The competition’s structure is designed to encourage active participation and platform exploration. Users begin by selecting a region of their choice, each themed around different global landmarks (from Tokyo to Angkor Wat). Such a unique gamification element adds an exciting layer of adventure to the crypto experience.

The future is crypto. Here’s why

Examining data found on the internet, it is evident that various signals point towards a significant increase in cryptocurrency usage in the next few years. This trend is likely to be further driven by the changing financial trends and regulatory environments which are currently being established. Likewise, there is a growing political backing for cryptocurrencies, especially among younger voters who are pushing for digital assets.

Furthermore, the US Securities and Exchange Commission (SEC) approving multiple Bitcoin ETFs has become a major factor attracting possible new investors. Around 21% of non-owners have stated that these approvals have increased their inclination to invest in cryptocurrencies.

In the US specifically, this may mean about 29 million new users entering the crypto industry, leading to a significant change in the landscape.

Focused on what lies ahead, the cryptocurrency market is on the verge of a new era, largely propelled by the previously mentioned engagement tactics. Hence, with digital assets gaining more acceptance from individuals and institutions, we can anticipate an increase in innovation, expansion, and collaboration in both traditional finance and cryptocurrency sectors. Exciting times are coming!!