The cryptocurrency market experienced massive growth last year, with the total market cap reaching the $3 trillion mark for the first time in November.
70% of US Crypto Investors Started Investing in 2021
A new report recently published by cryptocurrency exchange Huobi reveals that 70% of US crypto investors began investing last year. The Decentralized finance revealed some interesting data about crypto investors in the United States.
The current Bull Cycle, which began in 2020, attracted US citizens to the crypto market. While 70% of the respondents said they started investing in cryptocurrencies in 2021, 21% said they began the year before. Only 9% of the respondents have been in the crypto space for four years or more.
46% of the respondents said they currently hold $1,000 or less in crypto, while another 25% said they hold between $1,000 and $10,000. The interest came as Bitcoin and other leading cryptocurrencies rallied to new all-time highs during the course of the year.
DeFi and NFTs Convinced People to Enter the Crypto Space
The Decentralized finance (DeFi) and Decentralized finance (NFT) sectors recorded huge growth last year. The survey said the interest in those sectors was crucial to the growth experienced by the broader cryptocurrency market last year.
Jeff Mei, Director of Global Strategy at Huobi Group, said, “We still have a long way to go before mainstream adoption will happen. Once more people take the time to understand the industry, and there’s more clarity on global regulations, we can expect to see a spike in participation.”
Despite the increasing interest in cryptocurrencies, there are still concerns regarding cryptocurrencies. The report said, “42% of respondents felt it was too risky, and 34% were concerned about the lack of market regulations. 25% of survey respondents said flat out that they didn’t have enough capital to invest in crypto.”
A CNBC survey published last month showed that about 48% of millennial millionaires plan to add to their holdings this year, while 39% plan to maintain their current crypto levels.