Emerging markets' financial landscape is being reshaped by cryptocurrency wallets, as per Bitget's latest report.
Emerging Markets Dominate Daily Crypto Transactions, According to Bitget Wallet Report
A newly released report by the Bitget Wallet reveals that users in emerging markets engage in more everyday cryptocurrency transactions compared to those in developed economies. On May 28th, the crypto wallet platform shared details about the global usage of their wallet, highlighting an increase in everyday uses of cryptocurrency, particularly in developing countries.
The report, based on responses from 4,599 users, categorized respondents by age and region. The data showed that while Europeans primarily used their Bitget Wallets for trading, users in Southeast Asia, South Asia, and Africa tended to utilize their wallets for a variety of functions, primarily sending cryptocurrency to other users.
Financial inclusion is one reason for higher cryptocurrency usage in emerging markets. Many people in these regions lack access to traditional banking institutions and payment providers. Therefore, these regions commonly turn to cryptocurrency as a suitable alternative. Furthermore, the report suggests that users from these markets are attracted to earning airdrop rewards due to their typically lower income levels.
"This report demonstrates a fundamental shift in how users interact with crypto wallets," said Gracy Chen, CEO of Bitget. "Wallets are transforming from an extension of the crypto ecosystem to new-age finance ecosystems, and we at Bitget have observed the evolving behavior of our users."
In North America and East Asia, users were evenly split between trading and sending cryptocurrency. However, East Asian users showed a higher level of engagement, with 48% sending cryptocurrency and 47% trading. Additionally, this region had the highest long-term holding rate, at 43%.
To adapt to this shift in user behavior, Bitget plans to make their wallet more accessible for users who are not yet proficient in cryptocurrency.
While the report primarily focused on the difference in cryptocurrency usage between emerging and developed markets, it also touched upon the growth potential for cryptocurrency in developing countries due to their increasing adoption and expanding digital infrastructure.
In developed countries, cryptocurrency wallets are often seen as supplementary financial tools rather than primary means for everyday transactions. Traditional banking services are widely available, and users tend to utilize cryptocurrency wallets for specific investment purposes or transactions related to cryptocurrencies. Additionally, developed countries may have stricter regulations on cryptocurrency usage, which can affect adoption rates.
The Bitget Wallet report indicates a predominance of daily crypto transactions in emerging markets compared to developed economies. In contrast, Europeans mainly use their Bitget Wallets for trading, while users in Southeast Asia, South Asia, and Africa favor sending cryptocurrency to other users. Financial inclusion and the lack of traditional banking access drive higher cryptocurrency usage in emerging markets, with users in these regions also attracted to airdrop rewards due to lower income levels. To cater to this shift in user behavior, Bitget aims to make their wallet more accessible to less experienced cryptocurrency users. Despite the report's main focus on the difference in crypto usage between developing and developed markets, it also hints at the potential for significant cryptocurrency growth in developing countries, thanks to increasing adoption and advancements in digital infrastructure. In developed countries, cryptocurrency wallets are often seen as secondary financial tools, used primarily for specific investment purposes or transactions related to cryptos, and may be subject to stricter regulations that affect adoption rates.
