A new study reveals that Singapore benefited from cryptocurrencies, especially Ethereum, through increased adoption.
Germini, a crypto exchange, conducted The State of Crypto in Singapore Report 2021, collaborating with Seedly and CoinMarketCap. The report revealed that the financial investments of over two-third of the citizens include digital assets.
The report has participants of 4,348 Singapore residents that indicate their interest or possession in investment products and personal finance. The outcome exposes that currently, 67% of the participants have crypto assets.
From the statistics, one out of five crypto owners in Singapore is a woman. Furthermore, the study structures an average crypto owner in the country to be a 29-year-old male with an income of about 51,968 SGD per annual ($38,456).
Ethereum Leads in Crypto Holdings
While proportionating the country’s investors’ digital assets, the study discovers that Ethereum (ETH) is taking the lead. Ether native token tops as the most popular digital asset having about 78% holders.
Following it with about 69% holders is Bitcoin (BTC). Then comes Cardano (ADA) and Binance Coin (BNB), with 40% and 31% holders, respectively. Also, the study reveals that a quarter of the investors have Tether (USDT) and Ripple (XRP).
As Ether popularity grows, ETH keep dominating the market with new developments | Source: ETHUSD on TradingView.com
According to the report, the COVID-19 pandemic created an increased adoption of cryptocurrency in Singapore. It shows that about 67% of the crypto-investment happened during the pandemic and that’s when Ethereum paced up.
Some of the investments serve as an inflation hedge, while others are from increased disposable incomes resulting from the lockdowns.
Conversely, there are still non-crypto holders with some reasons for not investing yet in digital assets. One of the major factors from the study such class of people is lack of knowledge and understanding about cryptocurrency.
Other reasons could be traced to risk management, the volatile nature of the crypto market, and inadequate regulatory oversight.
From another study that involved a smaller number of participants, there’s a high expectation for increased crypto investment. The study reveals that about 46% of Singaporeans propose to purchase cryptocurrencies within the next twelve months.
The study was made following the increased adoption of cryptocurrency in the country. It had about 1,000 respondents comprising of Singaporeans of different gender, location, and age.
The country already has paved its way as a core for cryptocurrency and blockchain within its region. In addition, Singapore supports zero capital gains tax on digital assets income.
There are over 234 blockchain companies operational in the country. Also, Singapore has hosted several crypto-related conferences and events in the past.
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