Chainalysis data shows crypto use climbing despite market volatility.
On-chain wallet activity data suggest that investors are more active now than in the previous cycles, suggesting growing market confidence, Chainalysis highlights in its “The 2024 Crypto Spring Report.” The transfer activity during the recent market surge surpassed the peak seen in late 2020 and 2021, and the number of wallets holding a positive balance continues to rise linearly, now boasting over 400 million wallets actively engaged with crypto.
“Though one wallet does not imply one user, as institutions and individuals can have multiple wallets, the volume of growth suggests that cryptocurrency use is growing,” pointed out the report.
Image: Chainalysis
As the adoption of crypto continues to climb, organizations are prompted to reassess their operational models to fully leverage blockchain technology’s unique opportunities. This is particularly crucial for financial institutions that are integrating crypto into mainstream financial services, underscored Chainalysis.
The mainstreaming of crypto also presents a mix of challenges and opportunities for government agencies and the public sector. The expansion of crypto’s utility increases the risk of its potential misuse. Chainalysis is dedicated to providing comprehensive data and intelligence tools to empower law enforcement agencies to maintain the integrity and security of the crypto ecosystem.
“The transition from winter to spring is not just a revival of fortunes but a significant step towards a future where blockchain technology and crypto assets are integral to our financial and operational landscapes,” adds the report.
Scalability boost
The report also touches on the importance of scalability solutions like the Bitcoin Lightning Network and Ethereum’s layer-2 scaling solutions, which have seen significant growth and are essential for the mass adoption of crypto.
The number of open channels on Lightning Network tripled in one year, reaching 6,000 channels on January 1, 2024. Meanwhile, Ethereum layer-2 blockchains surpassed the mainnet in daily transactions, and the total value locked in Ethereum-to-L2 bridges was at $18.1 billion as of March.