Users do not leave the cryptocurrency market

A recent survey revealed that users of digital assets have not left the market due to the volatility and crisis of some companies in the sector. Instead, they are diversifying their crypto holdings. This is what a survey conducted by cryptocurrency custodian Mercuryo found.

“Although average BTC balances in wallets have dropped by nearly 30% since the beginning of 2022, the balance of stablecoins has increased,” the document pointed out.

According to the survey, the balance in stablecoins such as Tether (USDT) increased by an average of 40%. The company says this could be an indication that retail investors are showing resilience with digital assets.

Despite the volatility that surrounds the market, investors do not want to leave cryptocurrencies:

“This is clear evidence that cryptocurrency holders are not defecting en masse,” said Mercuryo CEO Petr Kozyakov.

Also according to Kozyakov, there is no doubt that investors maintain their expectations in the future of crypto-assets. That is, they believe that digital currencies will recover sometime soon.

As the report highlights, investors have used USDT as an alternative to exit exposure to BTC and altcoins but remain in crypto.

“This is evident in the growth we have seen in the stablecoin balance among our users,” said the CEO.

The executive also pointed out that these results indicate that crypto users believe the market will recover in the long term. In addition, he emphasized that more and more investors plan to own digital assets.

However, he pointed out that education and industry regulation are essential items for the mass use of cryptocurrencies.

Likewise, he suggests that crypto companies should find “real” world applications to ensure they remain attractive to a wide range of investors and not just those tech-savvy.