Despite the decline in the value of cryptocurrencies that is taking place in 2018, according to the results of a study by the Cambridge Centre for Alternative Finance, the number of verified cryptocurrency users has grown almost 2-fold over the first three quarters of the current year. There are currently 35 million such users, although last year there were only 18 million. As analysts note, these data may be of great importance for forecasting the behavior of the cryptocurrency market, since, if the number of users of the technology continues to grow despite the prolonged downward trend, it may ultimately switch to a healthy recovery. "The study's data is consistent with the widespread view that the majority of users — both experienced ones and beginners — are private individuals rather than business representatives. They may be enthusiasts, retail investors, consumers, or those who need a better payment or investment alternative," the authors of the study write.
It is also noted that the majority of users are most likely still observers or long-term investors. The cryptocurrencies themselves, due to their volatility, are practically not used in commerce. "The strongest growth was observed in 2017, but the number of new user accounts, as well as the number of users verified on the basis of documents, is growing steadily in 2018 as well," they add. At the same time, analysts do not provide separate data on the growth in the number of unverified users. It is possible that the positive dynamics they recorded are partly connected with the tightening of the regulatory situation in the cryptocurrency space this year. The arrival of new users into the cryptocurrency industry and, in particular, into the bitcoin industry, is extremely positive news, since, if this trend continues, one will be able to talk about the possibility of a new rally. After the rapid rise of November-December last year, as a result of which bitcoin ended up at the $20,000 mark, a correction began that deprived BTC of 85% of its capitalization over 12 months. The market capitalization was $59.49 billion. All cryptocurrencies in the top ten without exception are falling. At the time of writing this material, the cryptocurrency market is in a downward trend. The total capitalization of the cryptocurrency market reached $108.54 billion, according to Coinmarketcap data. The bitcoin dominance index is 54.81%
