2021-1-30 19:51 |
The cryptocurrency market is getting more diverse. Many have had different preferences and reasons to stay in the market, with different facets and sub-industries available.
In a new report, top crypto exchange Binance shared details of the market's status and how investors see digital assets in general.
Hodl, Hodl, HodlThis week, the top exchange shared its 2021 Global Crypto User Index, a report showing crypto users' perception of digital assets across the board. The report outlined a survey conducted between September 15 and October 25, 2020. Binance took responses from 61,000 crypto users across 178 countries and regions.
Most prominent in the report is the distribution of crypto users by reason. As Binance noted, the vast majority of crypto users are “hodlers.” Hodlers is a crypto term used to describe investors who purchase digital assets to keep long term. The poll shows that 39 percent of respondents are hodlers, followed by 28 percent who claimed to be keeping their cryptos to buy other cryptos.
22 percent of respondents said that they primarily use their digital assets for lending and staking, the latter of which has been prevalent in the past year. Only 11 percent of investors claimed that they use their cryptocurrencies for payments, showing that the asset class has yet to fulfill its potential as a viable payment method.
Solidifying Fears of a Liquidity CrisisThe prevalence of hodlers in the industry shows that a lot of investors are using their assets as a store of value. While many in the traditional finance space have criticized digital assets for their volatility, assets like Bitcoin have consistently delivered higher returns than their competitors.
However, having more hodlers in the industry also reinforces the fears of a possible liquidity crisis. Day traders have been left to fend for themselves, with Bitcoin in short supply. Earlier this month, Glassnode reported that 78 percent of the Bitcoin available in circulation is illiquid, with only 4.2 million tokens changing hands. Mining rig manufacturers are also working extra to push out new hardware to mine new bitcoins.
Last week, Reuters reported that mining companies had been running out of inventory as miners are working double-time to meet the increasing demand for Bitcoin. Bitmain, the industry's top mining rig manufacturer, has maxed its production capacity and won't have any inventory until August.
The post As Adoption Sets In, 60% of Crypto Investors Are Storing Funds On Exchanges: Binance first appeared on BitcoinExchangeGuide. origin »Binance Coin (BNB) на Currencies.ru
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