According to a new research by Insider Intelligence, in 2022, 3.6 million US adults will use cryptocurrency to make a purchase, skyrocketing 68.6% from 2021.
By the end of this year, the number of US adults with at least one cryptocurrency is forecasted to increase by 19% to reach 33.7 million. This means that 10.7% of crypto holders will use a currency to make purchases.
The largest ownership group will be adults aged 25 to 34, followed by those aged 35 to 44. The smallest but fastest growing group will be adults aged 65 and over.
“Younger investors have a genuine positive outlook on blockchain technology and are buying crypto to hold for a while, expecting prices to continue increasing in the long run,” says Islam. “Older investors will be more risk-averse and leery of the volatile crypto market. Although, they are increasingly starting to invest in crypto as more retirement funds offer it as an option.”
The most popular crypto in the United States is Bitcoin, with 25.2 million owners in 2022, up 16.7% over 2021. However, the currency’s share of the market will decline to 70.6% next year as competitors grow in popularity. Bitcoin will be followed by Ethereum, with 13.1 million holders in the US in 2022, up 26.8% over last year.
Per the analysis, payments with cryptocurrencies will reach $10.40 billion in total transaction value globally for the first time in 2022, an increase of over 70% from 2021. By the end of 2023, transaction value will grow another 55.4% to surpass $16 billion.
“Last year was all about networks building crypto payments infrastructure,” says David Morris, principal analyst at Insider Intelligence. “The growth in stablecoin usage is also helping alleviate asset volatility, and CBDC developments are spurring interest in crypto assets as a payment method. We also expect that more crypto options will be layered into how people pay, like cards and digital wallets. These factors should spur high crypto payment growth rates over the next few years.”