Whether we like it or not, numbers, statistics, and data are powerful tools that help us better understand industries and trends.

And the world of Web3 and cryptocurrencies is no different.

Today we're diving into some numbers in and around Web3 - and hopefully, by the end of this edition, you will have a better view of what’s going on: from global demographics to adoption rates of different blockchains.

Yes, I know: cryptocurrency has often been viewed through a lens of hype and speculation. However, the reality, backed by hard data, tells a more nuanced story → The adoption rates, demographic trends, and market behaviors provide a clearer picture of where this industry is headed and what potential it holds for the future.

And if you are a builder in the Web3 space or work for a company planning on stepping into it, you’ll be able to make your decisions backed by actual data and stats.

In the next segments, we'll examine the different types of data around distribution, explore different blockchains, talk about centralized exchanges, and discuss the role of regulations. And more.

LFG!

Crypto Adoption:
Global Trends and Demographics

One of the most “mainstream” recognizable aspects of Web3 is cryptocurrency.

Your friends might not have heard about Blockchain or NFTs, but “Bitcoin” and “Crypto” may be something they’ve seen somewhere at least once.

Cryptocurrency is one of the best avenues for broader Web3 adoption since it deals with something everybody is used to: transactions, values, and money.

And despite the obstacles, bad media, and regulatory hurdles, cryptocurrency continues its rise, growing in both adoption and acceptance.

As promised, let’s get into some numbers:

According to a report by Triple-A, recent data shows that 562 million people globally now own some form of digital currency, marking a significant increase from 420 million in 2023.

Yes, over HALF A BILLION people own some form of digital currency.

To put it in perspective, this represents about 6.8% of the world's population, with the highest adoption rates seen in the United Arab Emirates, where 25.3% of the population owns cryptocurrency.

Countries like Vietnam, Thailand, and Turkey also showcase high adoption rates, demonstrating the global spread of digital currencies.

Demographically, the largest group of crypto owners falls within the 25-34 age range (not especially surprising I guess), making up 34% of the total, followed closely by the 35-44 age group at 31%.

Interestingly, the gender gap is narrowing, with women now representing 39% of cryptocurrency owners, up from previous years.

As expected, different regions show unique drivers for this growth. In Asia, the adoption rate has surged by 21.8%, with 326.8 million users.
North America has seen a 38.6% increase, bringing the total to 72.2 million users.

Economic instability and hyperinflation in countries like Argentina and Turkey have also driven people towards cryptocurrencies as a means of preserving wealth.

The rapid growth of crypto adoption shows that we are way past the “only speculation” phase; it’s a scenario that combines technological innovation, economic necessity, and increasing global awareness.

So before we move on, here are the main insights when it comes to crypto adoption:

• Global cryptocurrency ownership has risen to 562 million people, about 6.8% of the world's population.

• The largest demographic of crypto owners is aged 25-34, followed by 35-44, with women now making up 39% of owners.

• Asia leads in adoption with a 21.8% increase, followed by North America with a 38.6% increase.

• Economic instability in countries like Argentina and Turkey drives crypto adoption as a wealth preservation tool.

Blockchains Breakdown:
Market share of Blockchains, by Trading Volume

In past editions, we mentioned different blockchains serving various purposes and goals: Ethereum, Polygon, Solana, etc,

Understanding the distribution helps us gauge the dominance and specialized uses of each blockchain in the ecosystem.

As we can see in the image above, Ethereum continues to lead with a significant market share, driven by its robust smart contract capabilities and extensive developer community.

According to CoinGecko's 2024 report - and based on numbers from Q1, Ethereum accounted for approximately 37% of the total trading volume across all blockchains. This dominance is largely due to its use in DeFi projects, NFTs, and various dApps (which also means more liquidity).

Solana, known for its high throughput and low fees, captured about 20% of the market. Its focus on scalability has attracted numerous DeFi and NFT projects, although recent network outages have raised concerns about its long-term reliability.

If you follow “memecoins”, you most certainly know that many of the “hot projects” are running on Solana.

Following Ethereum and Solana, Binance Smart Chain (BSC) holds a substantial share, roughly 15% of the total volume. BSC's lower transaction fees and faster processing times have made it a popular alternative, especially for projects looking to scale quickly without incurring high costs.

It’s important to notice, however, that these numbers are ALWAYS changing. Ethereum, for instance, had nearly 60% back in October-23.
Factors like new projects being launched and even “hype” can affect the volume traded in each Blockchain.

A few weeks ago, in edition #39, we explored a project that uses Blast. And there’s always something new being developed, so it’s important to keep an eye on what’s going on before you decide which network is the best fit for you and your projects/businesses.

“So what?”

Understanding these market shares is crucial for investors and developers as they navigate the blockchain ecosystem. The distribution of trading volumes reflects the strengths and challenges of each blockchain, guiding decisions on where to invest or build new projects.

There are also aspects like environmental impact, the way different blockchains “work” (Proof of Stake x Proof of Work), and many others.

(Check out edition #28 for a deeper discussion on Environmental Impact)

So if you and/or the company you work for are launching a Web3 project, invest some time studying the different blockchains available and the pros and cons of each one, so your “adventure” starts on the right foot.

Centralized Exchanges:
A necessary evil?

Back in edition #20, we talked in length about DeFi (Decentralized Finance) and its benefits.

However, within the Web3 ecosystem, something that cannot be ignored is the power and size of centralized exchanges (CEXs).

“But Diego, the whole point of Web3 is fighting centralization, especially when it comes to finance and ownership”

Believe me when I say I’m a huge defender of this whole idea. Buuuuut, despite the ethos of decentralization, CEXs (Centralized Exchanges) generally offer a more user-friendly and, for some, a more secure approach to crypto trading.

Centralized exchanges like Binance, Coinbase, and Kraken dominate the trading volume charts.
Binance alone accounts for around 40% (this number is constantly moving)  of the total trading volume among CEXs, according to CoinGecko's 2024 market share report.
Its extensive range of trading pairs, liquidity, and user-friendly interface make it a top choice for traders worldwide.

Coinbase, particularly popular in the United States, is also a name to keep in your radar. Its regulatory compliance and reputation for security have made it a trusted platform for both retail and institutional investors.

Other notable exchanges include Kraken, Bitfinex, and Huobi. These platforms are recognized for their advanced trading features and large international user bases.

And since we are talking about numbers today: the spot trading volume in CEXs in March-24 alone reached 2.3 trillion US dollars.

“Ok, Mr. Pink Beanie. What about the famous ‘not your keys, not your coins’ saying?”

Well, once again, I’ll mention our edition #20. Back then, I said, “You're the bank, which is great. But you are the bank, which may be bad”.

This “mantra” highlights the risks associated with centralized exchanges, such as the potential for hacks and the loss of control over assets.
In other words, if the exchange vanishes or gets hacked, say goodbye to your funds (well, technically, they were not yours, right?)

On the other hand, however, the convenience, liquidity, and security features provided by these platforms ensure they remain integral to the crypto ecosystem.

Instead of having to set up a crypto wallet yourself, and then store your seed phrase somewhere safe, centralized exchanges offer the friendly “e-mail + password” path.

No - I’m not saying Centralized Exchanges are the best option.
On a personal level, I tend to avoid them as much as possible and I store 90+% of my crypto portfolio in hardware wallets.

But for the whole ecosystem, it’s just impossible - at least for now - to ignore these players.

“I know the day of adoption is coming when peer-to-peer, peerless control will exist en masse”

PREACH Frederik! I feel you 10000%

For a lot of different reasons, many traditional companies/legacy institutions are fighting against crypto and Web3 in general.

However, as we saw in the numbers above, it’s not a matter of “if”, but rather of “when”.

“(…) do not know jack about what web3 truly is”

Couldn’t agree more with you.

Thus my laser focus is on Education initiatives. Let’s help people and businesses truly understand what Web3 means!

“This technology will fundamentally change our understanding of interactions and transactions”

Yes, sir!

From (truly) owning collectibles to issuing tickets for concerts to interacting with football teams to improving transparency in supply chains… I mean, the list is pretty much endless, and I’ll keep sharing every new application I find.

Cookie3:
The first #MarketingFi Protocol & AI Data Layer for users, creators, and businesses

If you have been following The Wild West of Web3 for a while, you certainly have seen me mentioning Cookie3 a few times - including the recent edition #40, in which we talked about Tooling for Web3 builders.

I have been very close to their team since 2021 and have been watching them from the sidelines for a long time - and have recommended them to several of my clients and partners because I immensely believe in the power of on-chain analytics and how marketers can now build campaigns with data we've never had access to before.

And since we are talking numbers today, here are some bullish stats for you to grasp the size of the trouble those guys are creating:

• The biggest MarketingFi & AI Data Layer in Web3

• 300+ dApps implemented Cookie3 Analytics

• Over 18K+ KOLs registered at Cookie3 Affiliate with a total follow base of over 400M+ followers

• Supporting 20 blockchains and counting

• 100M+ visits already tracked by Cookie3 Analytics Plugin

• 14.4B+ multichain transactions already processed by Cookie3 Tracking Engine

• Project developed since Sep 2021

Stoked to support Web3 native new toolings that will immensely help tech adoption in our industry.

See you soon.

#LFGrow
Diego Borgo