Divide's single "Shape of You," has also become the most streamed track of all time on Spotify with over 1.4 billion streams.
"There is no doubt that 2017 was The Year of Ed Sheeran, and we are thrilled that so many millions of music fans have discovered, listened to, and shared his music on Spotify. Congratulations to Ed on an amazing achievement," said Spotify chief content officer Stefan Blom in a statement.
Drake, who took the top spot in 2015 and 2016, came in second place for most streamed artist of the year, followed by The Weeknd, Kendrick Lamar and The Chainsmokers.
Coldplay led the most streamed groups, followed by Imagine Dragons, Maroon 5, Linkin Park and Migos.
In terms of genre, Latin music listening increased 110 percent over last year with the help of two tracks that hit No. 1 on Spotify -- Luis Fonsi and Daddy Yankee's "Despacito" and J Balvin and Willy William's "Mi Gente."
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