Bitcoin (BTC) and Ethereum layer 2 scaling solutions led crypto adoption in several jurisdictions according to a recent study. The digital asset market soared to new levels in the last twelve months as new players poured into the scene. With new investors, centralized exchanges also recorded an uptick in trading volumes as well as the stablecoin market. BTC Dominates New Users Portfolio A new CryptoQuant poll shows growing interest in Bitcoin after the whole sector spiked last year. The report “2024 Crypto Survey: Exchange Use and Investor Behaviour,” highlights multiple interests, areas, and trends in the industry. As expected, BTC’s popularity outpaced other assets due to skyrocketing demand. Aside from stablecoins, Bitcoin remains the first crypto sought after by a consensus of retail and institutional investors. Last year, the United States Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs , opening a new investment window to traditional players. These funds dominated the market, with billions poured into the space, taking the asset’s price to a new all-time high. Amid the frenzy, new users adopted Bitcoin in droves to embrace the sector and on anticipated price peaks, leading to a diversified portfolio. The rise in decentralized finance (DeFi) firms led to demand for Ethereum layer 2 solutions. Other cryptos in high demand included XRP, Solana, and Ether. Geographically, Asia recorded the most crypto users as its youths embraced the use cases. According to the survey, the continent led with 40% of participants, while Europe and North America polled 29% and 10%, respectively. The general adoption was seen mainly across all regions due to macroeconomic factors and a need to hedge against inflation. Binance Leads Centralized Exchanges Participants indicated interest in Binance as their preferred centralized exchange in certain jurisdictions. Of 17,566 respondents, 53% used Binance as a primary exchange, while 48% held most platform assets. Furthermore, more than 50% of this number noted that more crypto gains were recorded from Binance. The exchange remains the largest by trading volume and is key to Bitcoin’s institutional and retail value . “ Bybit, Binance, OKX, and Bitget attract a larger share of full-time traders (more than 30%). Meanwhile, Coinbase, Crypto.com, and Kraken cater primarily to part-time traders (more than 80%), reflecting their focus on casual investors. The difference could also be explained by the distinct preferences of traders in the exchange’s core regions,” CryptoQuant wrote.
ETP: Exchange-traded patience
