In the past year, the crypto markets witnessed what the industry participants call one of the worst bear markets along with the collapse of several firms putting investors’ confidence in the asset to the test. However, data suggests that the adoption of Bitcoin and Ethereum continued to grow despite the adverse conditions.
As per data from a recent report of Coingecko, a firm providing fundamental analysis of the crypto sector, Bitcoin and Ethereum over the past year have continued to grow. Despite the prices of the two largest cryptocurrencies by market capitalization dropping by over 60% last year, the investors still made significant investments in the assets.
According to the report, the number of wallets holding at least $1000 of crypto assets increased by 27% last year. During this period, addresses accumulating 0.1 Bitcoin (around $1000) increased to 4.20 million as of December 31 from the 3.40 million recorded on January 1 last year. Similarly, wallets holding 1 Ethereum (minimal value of $1000) rose from 1.41 million to 1.73 million over the same time.
The report also highlighted that the rate of adoption of the assets grew to its highest level in the fourth quarter of the year. The highest adoption rate event coincided with the collapse of the crypto exchange FTX.
According to the report, while addresses holding 0.1 Bitcoin grew by an average of 7.3% each quarter, the rate during the collapse of FTX jumped to 9.7%. Simultaneously, addresses holding 1 Ethereum rose by an average of 7% each quarter and surged by 10.4% during this period.
In the case of Ethereum, the higher adoption was tied to the completion of its migration to a proof-of-stake consensus mechanism in September.
Notably, Bitcoin and Ethereum have ended the poor price performance of last year, by rising over 30% over the past month. In the last 30 days, the performance of both assets saw them return to their pre-FTX collapse levels. Bitcoin prices rose above $23,000 while Ethereum rose above $1,600 for the first time since September 2022 bringing major relief to investors.
However, not just Bitcoin and Ethereum, the run also spread to other digital assets like Aptos’ APT token, which surged to a new all-time high. In addition, Solana’s SOL and FTX’s native token FTT also saw a significant rise.
Besides that, the total crypto market capitalization reclaimed the $1 trillion mark amidst the bull run. As of writing, Bitcoin is trading at $23,693.00, a 2.75% surge over the past 5 days and about 42.73% surge over the past month whereas Ethereum is trading at $1,629.60, a 1.07% surge over the past 5 days and about a 35.90% surge over the past month.