Crypto Adoption on the Rise as Investors Seek Inflation Protection
According to a recent survey by MexC, nearly half of global crypto users now view digital assets as a means to protect themselves from inflation, marking a significant increase from the previous year. The survey, which polled users in various regions, found that 46% of respondents cited crypto as an inflation protection, up from 29% in the first quarter. This shift reflects growing concerns about ongoing price pressures and currency weaknesses worldwide.
The survey also revealed regional variations in crypto adoption, with East Asia recording the steepest climb in users citing crypto as an inflation shield, jumping from 23% to 52%. The Middle East also saw a notable increase, rising from 27% to 45%. These findings suggest a strong connection between macroeconomic stress and the adoption of digital assets.
Latin America and South Asia: Emerging Hotspots for Crypto Adoption
Latin America has emerged as a cultural hub for crypto, with ownership of memecoins such as Dogecoin and Shiba Inu rising from 27% to 34%. New users in the region cited passive income as their primary motivation for entering the market, with 63% seeking to generate returns through crypto investments. In contrast, South Asia has seen a surge in spot trading, with 52% of users engaging in this activity, compared to 45% globally.
In South Asia, younger mobile users are driving activity, with financial independence being the primary motivation for over half of respondents. The region also saw a strong increase in futures trading, with 46% of users participating, compared to a global average of 29%. These trends suggest that crypto is becoming an increasingly important part of the financial landscape in these regions.
Bitcoin and Ethereum Remain Core Holdings, While Stablecoins Balance Risk
Public chains such as Bitcoin and Ethereum continue to form the backbone of global portfolios, with over 65% of investors holding these assets. Trust in these cryptocurrencies is highest in Latin America and Southeast Asia, where long-term faith in blockchain infrastructure remains strong. Stablecoin holdings have remained stable worldwide, indicating that investors are seeking to balance risk with potential returns.
The survey also highlighted regional differences in investment strategies, with South Asia and Southeast Asia leaning heavily on futures trading, while Latin America has shifted towards safer, more cautious approaches. The distribution of assets is also changing, with high-quality wallets over $20,000 falling from 39% to 33% in East Asia, due to profit-taking and market pressure.
Inflation Fears Drive Investors Towards Crypto for Wealth Protection
Analysts note that increasing inflation fears are driving more investors towards crypto as a means of protecting their wealth. This reflects a broader distrust of fiat currencies, particularly in regions with weaker exchange rates or high inflation. As a result, digital assets are being seen as a store of value, despite their volatility.
Looking ahead, MexC expects “wealth protection” to be the primary reason for new users in the third quarter, as global macroeconomic trends continue. The company also anticipates growth in futures and margin trading as the bull cycle matures, with traders seeking more structured paths to returns. The enthusiasm for retail is shifting, with memecoins and new narratives such as AI-bound tokens expected to drive short-term inflows.
According to Tracy Jin, Chief Operating Officer at MexC, “Crypto adoption is developing worldwide in different ways and at different speeds, and there is no one-size-fits-all approach.” The survey results highlight the diverse regional patterns, ranging from inflation hedges in East Asia to community-driven growth in Latin America.
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