The crypto system enters a phase of quicker progress that could expand the user base from hundreds of millions to several billions. The coming together of institutional money, better technology and clearer rules creates a favorable environment for a new growth cycle that may attract many users.
The meaning of a growth cycle
A “growth cycle” means a long period where economic factors and technical progress combine to increase adoption significantly. Recent indicators point to a very high yearly growth rate and estimates of a user base near 700 million by the end of 2024, which some view as a starting point toward much larger scales if current trends persist.
Three vectors supporting expansion
Institutional money, technical progress, and clearer regulation are the three vectors that support the possibility of a big increase in users. Institutional money such as Bitcoin ETFs directs traditional funds and makes it easier for cautious investors to enter; technical advances like rollups and zk-proofs along with improved user experience reduce costs and complexity; and clearer rules in some jurisdictions increase trust in custodians and service providers.
Barriers to reaching billions
Moving toward billions of users is not certain because important obstacles remain. User experience continues to limit adoption among nontechnical users, ongoing price volatility restricts everyday payment use, and poorly designed regulations could concentrate power in central actors and slow progress.
Implications for access and decentralization
Big growth can give more people access to financial services without middlemen, but preserving decentralization is crucial. Asset tokenization and DeFi provide alternative rails that could increase financial control for millions, but they require technical and regulatory protections to safeguard user independence and prevent excessive centralization or unfair controls.
If institutional money, technical improvements, and clear rules come together, the crypto system could grow to billions of users. Actual adoption will depend on improving user experience, reducing price volatility, and protecting decentralization against centralizing pressures to ensure the benefits reach a broad population.
