Crypto Ownership Surges 14% in 2024, Reaching 659 Million Users

The Web3 ecosystem has seen significant growth in recent years, with a notable increase in the number of everyday crypto users worldwide. According to the latest report by Crypto.com, the number of crypto owners globally surged by 14% in 2024, reaching 659 million by the end of the year. The total market capitalization of digital assets has also doubled from $1.7 trillion at the beginning of 2024 to around $3.3 trillion as of the latest data.

This article explores key growth trends in Web3, including regions with the highest adoption rates, regulatory factors, and the strategic role of retail-focused exchanges like XBO in onboarding more stakeholders from emerging markets such as the LATAM region and EMEA.

Crypto awareness is on the rise, particularly in emerging economies. According to a recent global survey by Consensys, 93% of respondents worldwide are aware of crypto assets. Notably, the level of awareness is highest in Nigeria (77%), South Africa (65%), and India (60%). Crypto ownership is also significantly higher in these regions, with Nigeria leading at 73%, followed by South Africa (68%), the Philippines (54%), Vietnam (54%), and India (52%). The percentage of Africans and Asians intending to invest in crypto assets within the next year is also notably higher compared to other regions.

The U.S. leads in institutional adoption of crypto, ranking fourth in the overall indexing of the 2024 Global Adoption Index by Chainalysis. This index comprises four major metrics: Centralized service value received ranking, Retail centralized service value received ranking, DeFi value received ranking, and Retail DeFi value received ranking. Institutional capital from U.S. companies has significantly flowed into the crypto market, with Bitcoin Spot ETFs attracting over $129 billion in inflows between their launch date on January 10, 2024, and the end of the year. However, retail adoption in the U.S. is not as robust as in emerging economies, partly due to the uncertain regulatory environment compared to Europe, where the MiCA provisions came into full application on December 30, 2024.

On a positive note, the U.S. Senate recently passed the Genius Act, which aims to provide regulatory clarity for stablecoins, protecting consumers and reinforcing national security measures. The bill, which passed with a 68-30 vote, is now headed to the House, where it has a good chance of becoming the first stablecoin regulatory framework in the U.S. The co-sponsor of the bill, Sen. Kirsten Gillibrand (D-NY), noted that the bipartisan GENIUS Act will provide regulatory clarity to the industry, keep innovation onshore, add robust consumer protection, and reaffirm the dominance of the U.S. dollar.

The MiCA framework, now in full effect, has positioned Europe as a leader in Web3 innovation. Despite initial skepticism, the clarity provided by MiCA has attracted more crypto companies to set up shop in Europe. Notable firms that have received a MiCA license include OKX, which has established its European base in Malta, and Crypto.com, which has also followed a similar path. Both exchanges now have the flexibility to provide their services across the EU due to the passporting provision for MiCA-licensed entities. The latest survey on Web3 startups indicated that Europe tops the world with over 3900 crypto startups, although this number may have reduced as most of these companies were not MiCA-compliant at the time of the survey.

Another region showing significant growth in the Web3 market is LATAM. Out of the top 20 in the Chainalysis adoption list, LATAM countries featured prominently, with Brazil, Venezuela, Mexico, and Argentina making the cut. The levels of adoption in these markets are particularly noteworthy. For example, the Argentine Football Association (AFA) has partnered with XBO, a leading digital crypto exchange focused on making digital asset trading secure, accessible, and user-friendly. This partnership is a testament to the growing demand for crypto in LATAM, from retail to institutions to governments like El Salvador, which had adopted Bitcoin as legal tender but dropped it earlier this year following pressure from the IMF. LATAM was the second-fastest-growing region, with a 42.5% year-over-year growth in crypto adoption according to the Chainalysis report.

Web3 has evolved significantly since Bitcoin’s debut in 2009, becoming the only financial market that trades 24/7. The adoption of Web3 is evident on both retail and institutional levels. Emerging economies are driving retail metrics, while advanced countries like the U.S. lead in institutional activity. The next decade will be crucial for Web3, as regulatory developments and growing crypto use cases in regions like LATAM, Africa, and Central & Southern Asia and Oceania (CSAO) will shape its future.