In recent months, the cryptocurrency market has
shown positive growth patterns in the global markets.
Several of these growth patterns have been
driven by an increase in demand from retail investors in the Asian
cryptocurrency market.
According to information provided by CoinGecko, during the first quarter of the year, the total crypto market cap rallied by +64.5%, reaching a high of $2.9 trillion.
Likewise, indicators such as a new all-time high
for cryptocurrencies like Bitcoin, having reached $73,098, accompanied the
positive market trend in the Asian region.
The Behavior of Crypto Retail Investors
The cryptocurrency market has different types of
investors, retail investors are usually known as those investors who seek
personal profit by investing for themselves, through the activity of selling
and buying cryptocurrencies.
Over the past few weeks, the cryptocurrency
market has shown a positive growth trend driven by retail investors.
Javier Castro Acuña, Head of Crypto and Web3 at
Bitnovo, stated, "In recent years,
crypto companies that have stayed afloat have continued to grow and develop new
products and services, and at the same time, new initiatives have emerged.
Following the approval of ETFs in the United States, many have realized the potential
of the sector and, once the barrier of uncertainty has been removed, have
launched into financing projects, especially those already established, since
it is much faster and safer to invest in a platform that is already up and
running."
Some of the main factors that have driven this
growth have been:
• The approval by regulatory authorities of the
first Bitcoin ETF in the USA 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 South Africa and Singapore have
chosen to take various measures to become crypto hubs, boosting the growth of
the crypto market.
• Funding within various cryptocurrency projects
has generally increased in the Asian region. In March and April 2024, the
crypto venture capital funding reached $1.09 Billion and $1.02 Billion
respectively.
Market Initiatives That Have Boosted Crypto
Market Growth
Asia has been considered one of the
fastest-growing regions in terms of cryptocurrency adoption.
According to data provided by
Statista, the revenue in the Cryptocurrencies market is projected to reach
US$51.53bn in 2024. Revenue is expected to show an annual growth rate (CAGR
2024-2028) of 8.62% resulting in a projected total amount of US$71.72bn by
2028.
Meta Pool DAO announced the launch of its
seventh round of funding, mpDAO Grants round 7, within the framework of its
fund to support the growth of crypto projects in the Asian region, achieving a
new financing amount of $110,000 USD. In its previous round of funding, 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 affiliate LINE, announced on Jan. 16 their
decision to integrate their ecosystems, aiming to boost the crypto market in
Asia.
• Various
regulators, such as the regulators of Hong Kong, took initiatives to boost the
growth of the crypto market, an example is the new sandbox of the digital Yuan
launched by the regulators of Hong Kong.
Claudio Cossio, Co-
Founder Meta Pool, added "IInstitutional
investors in Asia are starting to move from hubs such as Singapore and Hong
Kong, into new markets such as Seoul, Bangkok and Ho Chi Minh. Focusing in
SocialFi, GameFi and DeFi".
We can conclude by
understanding that the global cryptocurrency market is in a moment of growth
driven by various factors such as the investments carried out by retail
investors.
By: Juan A
