A recent study by the University of Cambridge shows that the number of users in the cryptocurrency market has increased by 189% over the past two years.

The third "Global Cryptoasset Benchmarking Study" released by the University of Cambridge indicates that over the past two years, the number of unique cryptocurrency users has increased by 189%. Institutional participation in the United States has significantly increased, but the overall market is still dominated by retail investors.

Unique Cryptocurrency Users Increased by 189% in the Past Two Years

According to the third edition of the "Global Cryptoasset Benchmarking Study" jointly published by the University of Cambridge and its Centre for Alternative Finance, findings show that the global cryptocurrency user base has increased by 189% since 2018.

Data from the study indicates that as of the third quarter of 2020, there are a total of 101 million unique users across all cryptocurrency service providers. These service providers, consisting of cryptocurrency exchanges and wallets, have registered 191 million accounts. The report notes that the second edition of the Global Cryptoasset Benchmarking Study released in 2018 estimated that there were approximately 35 million globally verified cryptocurrency users through Know Your Customer (KYC) procedures. In other words, the number of unique users in the current market has increased by 189% compared to 2018.

Furthermore, the authors of the report also highlight that in addition to their research, a study by the UK Financial Conduct Authority indicates a 78% increase in the number of global cryptocurrency asset owners compared to 2019.

Retail Users Still Dominate the Market

On the other hand, the research also points out that Fidelity Digital Assets conducted a survey of institutional investors in the US and Europe, where 36% of respondents had already invested in cryptocurrency assets, and three-fifths believed that cryptocurrency assets should be part of their investment portfolios. Many service providers have developed professional infrastructure and products for institutions, and the market share of institutional investors is growing. However, despite this, retail customers still make up the majority of all users.

"The customer base of cryptocurrency asset service providers is still primarily driven by retail, meaning that while institutional interest in cryptocurrencies continues to grow, the conversion rate (from interest to actual investment) remains limited."

According to the research team, issues such as market manipulation and sharp fluctuations are the main barriers to entry for traditional institutional investors in the cryptocurrency market.

Furthermore, there are significant differences in institutional investor interest in cryptocurrencies across different regions. As shown in the above graph, institutional investors in North America and Europe have higher participation in the cryptocurrency market, while institutions in South America and the Asia-Pacific region have relatively lower participation.