Vast Majority of Investors in Emerging Markets Plan to Increase their Crypto Investments

Last updated: Mar 30, 2023
3 Min Read
AI Generated Summary

Roughly 75% of investors in emerging markets plan on increasing their holdings of cryptocurrency, according to a new study from consumer insight and analytics firm Toluna.

The crypto-keen investors in emerging markets overshadows those in developed markets, of which only 57% responded saying they planned to grow their digital investments.

Toluna says that crypto is taking emerging markets like Asia Pacific (APAC) and Latin America (LATAM) by storm, with both geographies having a “stronger positive outlook around digital currency and its potential.”

The firm says that these emerging markets are also more likely to view cryptocurrency as a “long term upward trend,” while developed markets often see it as hype.

Toluna gives two stats to support that:

● 32% of consumers in emerging markets say they have trust in cryptocurrency, compared to just 14% in developed markets

● 41% of consumers in emerging markets say they’ve invested in cryptocurrency, compared to 22% in developed markets

Toluna suggests that while developed markets are undoubtedly showing strong interest in crypto, its consumer insights indicate that emerging markets are offering the “greatest potential for growth—both now and in the future.”

Emerging markets also appear to have a slightly higher risk tolerance than developed markets, as per the study.

“The dichotomy between emerging and developed markets remains true here, too. Twenty-five percent of consumers in emerging markets consider cryptocurrency investments to be risky—a stark contrast to 42% in developed markets.”

In a recent report from blockchain analytics company Chainalysis, the firm listed almost entirely emerging and developing countries in their “Crypto Adoption” rankings. It’s top five were Vietnam, India, Pakistan, Ukraine, and Kenya.

Image via Chainalysis

Chainalysis said,

“…In emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions; in North America, Western Europe, and Eastern Asia, by contrast, adoption over the last year has been driven largely by institutional investment.”

Chainalysis also concluded that APAC, LATAM, and Africa all send more web traffic to P2P platforms than regions with larger economies like Western Europe or East Asia. The company ties this to the fact that many emerging markets face heavy currency devaluation, driving people to invest in crypto to preserve their savings. Other activity can be traced to individuals wanting to carry out international transactions such as remittances or commercial purposes.
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