Year 2024 sees 95% surge in Crypto millionaires and billionaires, but how?
Founder of Binance Zhao Changpeng, the richest crypto billionaire, during an event in Athens, Greece, November 25, 2022. (Reuters Photo)
In 2024, the global cryptocurrency market experienced a seismic shift, significantly increasing the number of crypto millionaires and billionaires.
This rapid expansion underscores the growing influence of digital assets on the global financial landscape, as highlighted in the recently published Crypto Wealth Report 2024 by Henley & Partners.
How many crypto billionaires are there?
- Global crypto market value: The total market value of crypto assets has reached a staggering $2.3 trillion, reflecting an 89% increase from the previous year’s $1.2 trillion.
- Bitcoin’s record highs: Bitcoin achieved a new all-time high in March 2024, surpassing $73,000.
| Worldwide Crypto Wealth Statistics | Crypto | Bitcoin |
|---|---|---|
| Millionaires | 172,300 (+95%) | 85,400 (+111%) |
| Centi-Millionaires | 325 (+79%) | 156 (+100%) |
| Billionaires | 28 (+27%) | 11 (+83%) |
| Total Crypto Users (Million) | 560 (+32%) | 275 (+31%) |
| Total Market Value (USD Trillion) | 2.3 (+89%) | 1.2 (+103%) |
- Crypto millionaires on the rise: The number of individuals holding over $1 million in crypto assets surged by 95%, reaching 172,300. Of these, Bitcoin millionaires saw an astounding 111% increase, totaling 85,400.
- Centi-millionaires and billionaires: The upper echelons of crypto wealth expanded notably, with the number of centi-millionaires (individuals with crypto holdings of $100 million or more) increasing by 79% to 325. Meanwhile, the exclusive group of crypto billionaires grew by 27%, now numbering 28 globally.
So, who are the richest crypto billionaires?
- According to Forbes, the richest crypto billionaire, for the third year in a row, is Changpeng Zhao, the founder and former CEO of crypto exchange Binance, who is worth an estimated $33 billion.
- Ranking second is Brian Armstrong, the co-founder of Coinbase, worth an estimated $11 billion, according to Forbes.
- He is followed by Giancarlo Devasini, the chief financial officer of Tether, and Michael Saylor, the co-founder of MicroStrategy, according to the list.
The past year has seen the creation of 6 new crypto billionaires, 5 of whom made their fortunes primarily through Bitcoin, underscoring its dominant position in the market. The performance of the millionaire segment has been particularly strong, reflecting the growing confidence in crypto as a long-term investment
Andrew Amoils, Head of Research at New World Wealth
Why did Bitcoin surge in 2024?
After significant downturns in 2022 and 2023, Bitcoin made a strong comeback in 2024. The cryptocurrency saw substantial gains on March 8 and March 14, propelling it to new all-time highs. This resurgence highlighted renewed confidence and growing interest in the cryptocurrency market, drawing attention from investors around the globe.
- Dominic Volek, Group Head of Private Clients at Henley & Partners attributed this rapid growth to the introduction of crypto ETFs in major financial markets, which have brought significant institutional capital into the crypto space. Volek pointed out that anticipation is building for potential Solana ETFs to join the fray, further cementing the role of digital assets in global financial markets.
- Jean-Marie Mognetti, CEO and Co-founder of CoinShares says the U.S. Securities and Exchange Commission (SEC)’s approval of spot Bitcoin ETFs marks 2024 as a transformative year for the digital asset industry, paving the way for broader institutional adoption. Bitcoin’s potential to enhance the performance of traditional investment portfolios underscored its growing significance in the financial world.
The big picture: The report also highlighted the changing paradigms in wealth creation. Unlike previous generations, where wealth was primarily derived from property and stocks, today’s wealth is increasingly generated from digital assets such as Bitcoin, Ethereum, NFTs, and decentralized finance activities like yield farming and staking. This shift is leading to substantial returns on relatively small initial investments, contributing to the rapid growth in crypto wealth.
Where does crypto wealth come from?
The 2024 Crypto Wealth Report provides in-depth insights beyond the headline numbers. It explores the regulatory environments, technological infrastructure, estate planning for digital assets, and the rise of decentralized finance (DeFi) that are shaping the crypto market. The report also includes the updated Henley Crypto Adoption Index, which ranks countries based on their appeal to crypto investors.
- Singapore remains the top destination for crypto wealth, with a score of 45.7 out of 60, excelling in technological innovation, regulatory framework, and infrastructure development.
- Hong Kong (SAR China) follow closely given its strong economic fundamentals and favorable tax policies for investors.
- Securing the third position, the UAE provides remarkable tax advantages and opportunities with its rapidly expanding digital economy, making them attractive hubs for crypto investors.
How to attract crypto billionaires?
As the lines between traditional and digital finance continue to blur, there is a growing synergy between investment migration and cryptocurrencies. The index also emphasizes the importance of investment migration programs in attracting crypto wealth.
- Innovative approaches: Countries like Cyprus and Malta in Europe, and Antigua and Barbuda in the Caribbean, are emerging as attractive destinations with progressive regulations and innovative approaches to digital assets.
- Holistic ecosystem: The report stresses that the most successful jurisdictions will be those that can offer a holistic ecosystem for crypto investors, combining favorable regulations, robust infrastructure, and pathways to alternative citizenship or residence.
What are new trends in crypto market?
- Digital gold rush: As the crypto market evolves, the wealth creation paradigms are shifting. While property and stocks were the traditional sources of wealth, today’s fortunes are increasingly built on Bitcoin, Ethereum, NFTs, and other digital assets. Henry Burrows, CEO of Hoptrail, notes the staggering returns made from relatively small initial capital investments in these new financial instruments.
- Ethereum’s role: While Bitcoin often dominates headlines, Ethereum plays a crucial role in the crypto ecosystem. Lark Davis, a cryptocurrency investor, emphasizes that much of what is built in crypto is based on Ethereum or bridges liquidity back to it, showcasing its foundational importance.
- Stablecoins: Guneet Kaur, editor at Cointelegraph, highlights the role of stablecoins in providing security and transparency, offering a refuge for investors amid the volatility of other cryptocurrencies.
