Examined the phenomenon of users exiting the cryptocurrency market following the market crash that followed the collapse of the Terraform ecosystem and the consequent bankruptcy of several crypto brokers and lenders. The conclusion is that users are not leaving the crypto market.
Crypto investors are diversifying their portfolios!
Findings from the Mercuryo crypto wallet shared with Finbold, who is known for financial analysis, reveal that crypto users do not leave the market due to volatility, but instead diversify their holdings.
“Although the average BTC balance in wallets has dropped by almost 30% since the start of 2022, the stablecoin balance has actually increased and in fact average USDT holdings have increased by +40%.”
The cryptocurrency wallet and merchant payment platform thinks this could be an indication that retail investors are showing some resilience despite the volatility currently available in the market.
Petr Kozyakov, CEO of Mercuryo, said:
“This is clear proof that crypto holders are not fleeing in droves. Quite the opposite – despite the recent surge, the appetite for crypto continues. There is no doubt that recent events have exposed fundamentally flawed crypto projects, and things need to change to prevent this from happening again.”
Investors are waiting to re-enter the market
As an alternative to withdrawing their funds from the market, many investors have decided to convert some of their crypto holdings into stablecoins such as USDT, while waiting to re-enter the market.
“This is evident in the growth we are seeing in the growth in stablecoin balance among our users. This demonstrates consumers’ belief that in the long run the market will recover and continue to evolve.”
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