What type of investors are leading the crypto market in Asia?

What type of investors are leading the crypto market in Asia?

By : Juan Allan

During the last months, the cryptocurrency market in Asia has shown positive growth trends.

Statista reports that revenue in the cryptocurrency market is projected to reach US$8.2bn in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.68%, resulting in a projected total amount of US$11.1bn by 2028.

Within the cryptocurrency market, we can find different types of investors, with different purposes.
Two of the most common types of investors within the market are usually called institutional investors and retail investors.

Institutional investors tend to make larger investments than retail investors, they are also characterized by representing financial institutions, venture capital, and investment funds, among others. They generally invest on behalf of others and then take a commission on the return.

On the contrary, retail investors tend to make smaller investments and represent themselves.

Retail investors at the forefront of the crypto market

In recent months, retail investors have been at the forefront of the growth of the cryptocurrency market in Asia.

In this sense, countries like Vietnam, Thailand, India, and Pakistan have shown large trading volumes coming from P2P transactions.

The Chainalysis cryptocurrency adoption report has shown that the Asian region is one of the regions with the fastest growth in adoption and cryptocurrency transactions, with countries like Vietnam, Thailand, and India leading global crypto adoption.

Also, within the region, there have been various events which have boosted the adoption of cryptocurrencies in the region, such as:

The approval by regulatory authorities of the first crypto ETF in Asia has greatly boosted investments in the crypto market.

The tax authorities of Thailand modified the investment limits for retail investors in digital tokens backed by real estate or infrastructure.

Countries like Hong Kong and Singapore have opted to take various measures to become crypto hubs, boosting the growth of the cryptocurrency market.

Funding within various cryptocurrency projects has generally increased in the Asian region. In March and April of 2024, crypto venture capital funding reached $1.09 billion and $1.02 billion, respectively.

Meta Pool DAO announced the launch of its seventh funding round, mpDAO Grants round 7, within the framework of its fund to support the growth of crypto projects in the Asian region, achieving a new funding amount of USD 110,000. In its previous funding round, the project supported the development of 3 Asian crypto initiatives.

Blockchain platforms developed by South Korea’s leading tech giants, Kakao and Naver, joined forces. Klaytn, a blockchain initiative led by Kakao, and Finschia, a blockchain developed by Naver’s subsidiary LINE, announced on January 16 their decision to integrate their ecosystems, to boost the crypto market in Asia.

We can conclude by understanding that the crypto market is going through a period of growth in the Asian region, driven by various factors such as investments coming from retail investments.

*The article reflects the author’s personal thoughts and does not imply Asia News Today*

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