A16z, a well-known venture capital firm in the cryptocurrency industry, has estimated that there are millions of real crypto users every month. Determining the exact number of crypto users can be difficult due to factors such as users creating multiple addresses for security reasons or to participate in airdrops.
To accurately calculate the number of users, the researchers at A16z filtered out addresses that receive funds from distribution contracts and automatically distribute to other addresses. They also excluded addresses with very low balances at the beginning and end of September that engaged in a large number of transactions in a short period. The researchers recognized the importance of minimizing the number of addresses belonging to the same users, as users can have multiple addresses across different crypto networks and use various exchanges simultaneously.
Eddie Lazzarin and Daren Matsuoka attempted to make specific predictions using both on-chain and off-chain data sources. They noted that while users interacting through interfaces can handle a reasonable number of transactions within a specific timeframe, bots can operate at much higher frequencies.
Based on their analysis, the researchers at A16z identified that there are currently 30-60 million genuine monthly crypto users. This represents approximately 14-27% of the 220 million monthly active addresses measured in September.
Furthermore, this number corresponds to only 5-10% of the 617 million global crypto owners reported by Cryptocom in June. This indicates that there is a significant opportunity for growth in the sector.
As infrastructure improvements enable new and exciting applications and consumer experiences, there is potential to convert existing crypto investors into active users. The researchers emphasize that innovative applications and improved infrastructure could lead to the re-engagement of existing passive crypto investors, which is crucial for the growth and expansion of the user base in the cryptocurrency sector.
Please note that the information in this article should not be regarded as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.