Polls by the Federal Reserve Bank of Philadelphia show bull markets are the most persuasive factor when it comes to new crypto owners. In April 2024, interest from nocoiners more than doubled compared to the bear market of 2022.
Increase in Crypto Interest
The Consumer Finance Institute of the Fed in Philadelphia held a series of six surveys to gauge the levels of crypto ownership and first acquisitions. The research targeted the aftermath of the Covid pandemic, as well as periods following the 2022 bear market. The low point for first-time crypto buyers, or 'nocoiners', was in October 2022, when only 4% of queried users acquired crypto for the first time. From October 2023 onward, interest began to rise again, peaking in April 2024, when 13.4% of respondents intended to acquire crypto compared to 4% in 2022. Crypto veterans were also more active, with 21.8% of respondents who had ever owned crypto likely to buy more assets in the near future.
Globalization of Crypto Ownership
Crypto ownership and usage have become truly global. According to Chainalysis, leading countries in crypto usage include Argentina and India. Argentina's share of crypto owners has grown from 14% in 2020 to 30% in 2024, and in India from 8% to 22% over the same period. Indonesia leads in transaction volumes through DeFi protocols. The US is in the top five countries for using both decentralized and centralized exchanges.
Changes in P2P Market Usage
Chainalysis also notes a decline in the popularity of P2P markets. With advancements in other tools and platforms, the number of P2P transactions has decreased. More secure options for swapping now exist, such as DEX and hubs for stablecoin swaps. Direct stablecoin payments are also replacing the need for exchange services for BTC and ETH. Crypto ownership and usage are concentrating in Central and Southeast Asia, as well as Oceania, where there are the most innovations in Web3 and other retail use cases.
Studies suggest that bull markets have a significant impact on new crypto owners, leading to a substantial increase in their numbers during periods of market growth. The globalization of crypto ownership and the use of new technologies also contribute to the expansion of the crypto community.
