The cryptocurrency market experienced explosive growth last year, with the total market cap reaching $3 trillion for the first time in November.
70% of US cryptocurrency investors started investing in 2021
A new report recently published by cryptocurrency exchange Huobi revealed that 70% of US crypto investors started investing in the last year. Decentralized finance has revealed some interesting data about US crypto investors.
The current Bull Cycle, which began in 2020, has attracted US citizens to the cryptocurrency market. While 70% of respondents said they started investing in cryptocurrency in 2021, 21% said they started in the previous year. Only 9% of respondents have been in the crypto industry for four years or more.
46% of respondents said they currently own $1,000 or less in cryptocurrency, while another 25% said they own between $1,000 and $10,000. The interest came as Bitcoin and other cryptocurrencies soared to all-time highs of the year.
DeFi and NFTs have convinced people to enter the crypto space
The decentralized finance (DeFi) and decentralized finance (NFT) sectors recorded exponential growth last year. The survey said that interest in these sectors was critical to the growth witnessed in 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 occurs. Once more people take the time to understand the industry, and there is more clarity on global regulations, we can expect a spike in participation.”
Despite the growing interest in cryptocurrencies, there are still concerns about cryptocurrencies. The report said, 42% of survey respondents felt it was too risky, and 34% were concerned about the lack of market regulations. 25% of survey respondents clearly said that they do not have enough capital to invest in cryptocurrency.”
A CNBC survey published last month showed decentralized finance 8. About 48% of millennial millionaires plan to add to their holdings this year, while 39% plan to maintain current crypto levels.