Amid the declining trajectory of the crypto market, 2023 has seen increased crypto adoption and interest in some regions around the world. One of the regions that has shown increased adoption and interest is Turkey.
Currently, more than half of the country’s population has some form of exposure to cryptocurrencies, making Turkey one of the leading nations in crypto adoption.
Turkey Crypto Adoption Surges Amid Economic Crisis
According to data from Kucoin, one of the leading cryptocurrency exchanges in the world, Turkey has shown more interest in cryptocurrency to serve as an alternative for investment and wealth preservation in the country. This information was included in their latest “Understanding Crypto Users” study.
The report indicates a 12% increase in crypto adoption over the last 18 months, stirring up from 40% to 52% of the country’s population, due to a larger trend influenced by economic factors and a tech-savvy population.
Turkey’s young and tech-savvy population is leading the adoption of digital assets in the country by quickly adapting to new technologies.
According to the survey, almost half (47%) of crypto investors are female aged between 18-30. However, males are still dominant with a 57% rate but this indicates that women are becoming more active investors in the country.
Profile of investors in Turkey | Source: Kucoin
For investment, Bitcoin (BTC) has become the most popular among the Turks, with over 70% of investors holding BTC, followed by Ethereum (ETH) with 45% of holders, and stablecoins accounting for the rest. The report also highlights significant growth in interest in the area of altcoins and decentralized finance (DeFi) projects.
Another reason for this significant increase in crypto adoption in the country is the speedy depreciation of the Turkish Lira, with the currency falling over 50% against the US dollar. As a result, more Turks have recognized crypto assets as a better choice to store wealth and a safe haven in these troubling times in the country.
The report found that almost 37% of respondents adopt cryptocurrency for value storage, while 58% did so primarily to accumulate wealth over the long term.
Inflation is not also ruled out, as the country’s inflation rate has risen up to 59% according to data from Euronews.com causing a significant shift to digital assets as a solid financial alternative.
Turkey’s Inflation Rise
Data shows that Turkey has been facing an inflation crisis since the end of 2019, making the cost of living very difficult for families in the country.
The inflation began accelerating again in July 2023, dropping to a 47% inflation rate. However, the country’s annual inflation jumped close to 60% in August. The state statistics agency said prices rose by 58.9% over 12 months ending in August compared to 47.8% in July.
On August 7, 2023, Euronews took to X (Formerly Twitter) to emphasize how high the cost of living is in the country.
🇹🇷 It now costs more to feed a family in Turkey than they’ll make on minimum wage: So just how bad is poverty in Turkey? https://t.co/QKAAfAhWgW
— euronews (@euronews) August 8, 2023
The jump in inflation was heightened by both food and non-food prices, while other substantial increases were heightened by household equipment, health, clothing, restaurants and hotels, and entertainment and cultural activities.
Total market cap stays low at $1.023 trillion | Source: Crypto Total Market Cap on Tradingview.com