Researchers at Andreessen Horowitz (a16z), one of the giant venture capital firms in the cryptocurrency space, estimate that there are millions of “real” crypto users on a monthly basis.
Number of Crypto Investors
Calculating crypto users can be challenging because people are often motivated to create multiple addresses for reasons such as security or airdrop screening.
The researchers filtered out addresses that received funds from distribution contracts and automatically distributed them to many different addresses. In addition, addresses with almost zero balance at the beginning and end of September and addresses with a large number of transactions in a short period of time were also filtered out. The most important part of the comprehensive review was to minimize the number of addresses belonging to the same users, and they thought about this. Users can have many addresses in crypto networks and investors can use many cryptocurrency exchanges at the same time.
User Potential
Eddie Lazzarin and Daren Matsuoka attempted to make specific predictions using both on-chain and off-chain data sources.
“Humans using a user interface can only process a moderate number of transactions in a given time period, while bots can process at higher frequencies.”
As a result of the analysis, a16z researchers determined that there are 30-60 million real monthly crypto users today. This accounts for 14-27% of the 220 million monthly active addresses measured in September.
Additionally, this number represents only 5-10% of the 617 million global crypto holders that Cryptocom reported in June. This difference shows that there may be a great opportunity.
Conversion of existing crypto investors into active users can potentially be increased, especially as new and exciting applications and consumer experiences become possible with significant infrastructure improvements.
The research emphasizes that existing passive crypto investors can be re-engaged through innovative applications and improved infrastructures to increase the number of active users in the crypto market. This could be an important step for growth in the industry and expansion of the user base.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
