Crypto adoption is steady despite the market downturn

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Crypto adoption has remained steady in the US, UK, Singapore and France since 2022, despite recent market downturns, according to Gemini’s “Global State of Crypto 2024 Report.”

The study reveals opportunities for growth by recapturing former owners and attracting new investors, as more than 70% of past cryptocurrency owners indicate they are likely to buy cryptocurrency in the next year.

Moreover, about 65% of current owners are buying crypto with a long-term growth strategy. In particular, they even endured the total collapse of the market capitalization of the top 100 cryptos in 2022, which fell from $2.7 trillion to $830 billion.

Bullish on raises

The majority (57%) of cryptocurrency holders feel comfortable making crypto a significant part of their investment portfolio.

Additionally, an average of 62.5% of respondents believe that Bitcoin (BTC) and Ethereum (ETH) prices will continue to rise over the next five years, while an average of 55% believe that there are more reasons to be optimistic in 2024 than in the crypto winter of 2022.

Optimism is also significant regarding crypto adoption, as 60% of survey respondents shared their belief that many businesses will accept crypto as a form of payment within the next decade.

Selling activity is low while trading continues

Sales activity has slowed, with 75% of former owners exiting the market more than six months ago.

“The percentage of investors who sold their crypto in the last six months is lower than the percentage who sold more than a year ago. This indicates that many are holding onto their digital assets as the market has heated up this year,” the report said.

Furthermore, more than one in four (29%) of crypto investors said the reason they sold their cryptocurrency was because they lost money on their investments.

In the US, UK and Singapore, 46% of respondents actively trade crypto for profit, while 34% do so in France. Hedging inflation motivates 34% of respondents in the US and UK and over 40% in France and Singapore.

Changing landscape in the USA

In the US, 37% of crypto owners hold some of their funds through an ETF, with 13% holding crypto exclusively through this method.

Moreover, for the first time, crypto has become a significant campaign issue in the US presidential election, with 73% of respondents who own cryptocurrencies considering a candidate’s position on crypto when voting, and 37% of them responded that a presidential candidate’s stance on crypto would have a significant impact on their vote for the president.

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