The past two years have seen the cryptocurrency market at its most active, with the sector garnering attention from all around the world. In fact, 2020 set the stage for Bitcoin, with the world’s largest cryptocurrency showcasing its value in times of crises in the eyes of both retail and institutional investors.
The same can be evidenced by Binance Research’s latest findings, with the popular crypto-exchange observing that there is near-unanimous confidence in cryptocurrencies (Over 97%) among users across most demographics.
As the report found, while the global market was shaken by the COVID-19 pandemic’s impact on the world, cryptocurrencies soon became an investment option for many investors in the market. Most of these investors, today, do not consider trading Bitcoin as just a hobby. In fact, the report found that nearly 52% of the surveyed users view cryptocurrency investments as a crucial space, with 51% of the users receiving their annual incomes from crypto, with Bitcoin being the popular digital asset in most portfolios.
Given the raging +300% returns offered by Bitcoin to its investors year-to-date, the digital asset has earned a place for itself in most crypto-users’ wallets. 66% of the users who held crypto held Bitcoin as common crypto, among other altcoins like Binance coin [BNB] 57%, Ethereum [ETH] 56%, and Tether 44%. The report added,
“30% of Bitcoin owners allocate 1-20% of their crypto portfolio to BTC.”
The interest in cryptocurrencies also varied from country to country. Binance Research found that almost 23% of users in China will borrow capital to buy crypto, while only 3% of users were inclined to do so in The Netherlands. Similarly, interest in Decentralized Finance [DeFi] is mainly centered in Southeast Asia.
Despite such disparities, however, the wider insight to be taken from these findings is that crypto-adoption is on the up all across the board.
Meanwhile, the status of stablecoins in the ecosystem remains brief. Even though many new users are warming up to different cryptocurrencies, stablecoins are still predominantly used as liquid trading assets. 47% of the people surveyed highlighted the use of stablecoins as a highly-liquid asset to move between different cryptos while trading.
It should also be noted that though users have grown more familiar with cryptocurrencies, the roots are still centralized. In fact, a significant percentage of users still prefer “bank coins” and CBDCs over stablecoins, backing the notion that the latter may be viewed as a “temporary phenomenon.”
Credit: Source link