Cryptoasset Adoption and Volatility

This report on Cryptoasset Adoption and Volatility examines the global adoption rates of cryptoassets, highlighting key trends and factors that contribute to their growth. Developing countries lead the way in adoption rates, with male millennials around the age of 35 being the most likely cryptoasset owners. Factors such as inflation and money supply growth have an impact on adoption rates, with institutional investors like high-net-worth individuals and financial advisors being the most likely to invest

Retail adoption rates vary between 5% and 24%, while institutional adoption rates range from 28% to 57%. Switzerland and the Netherlands exhibit the highest adoption rates in Europe, while France and the United Kingdom have the lowest. The pace of adoption has accelerated post-Covid, with the growth rate of retail cryptoasset users averaging around 87% per year since 2017.

In conclusion, the global adoption of cryptoassets is evolving rapidly, with a clear shift towards digital and decentralized currencies. While certain demographic groups and countries are more likely to adopt these assets, the growth rate of adoption tends to cycle and is typically highest around market cycle tops. As such, it is important for investors and policymakers to closely monitor these trends and adjust their strategies accordingly.

The ”View From The Citadel” deep dive report on Cryptoasset Adoption and Volatility is written by André Dragosch, Head of Research at Deutsche Digital Assets.

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