Only 11% of crypto holders are using their coins to pay for goods and services, according to a report by Binance Research.
The majority of cryptocurrency users reportedly prefer to hold their crypto as part of a long-term investment strategy, according to a new survey by Binance Research.
The “2021 Global Crypto User Index” report is based on a global survey that includes input from more than 61,000 crypto users across 178 countries and regions. The survey was conducted over a period from Sept. 15 to Oct. 25, 2020.
According to Binance Research’s findings, the majority of respondents were mainly motivated to own crypto due to the concept of “hodling,” which means that most people are inclined to hold cryptocurrency rather than sell it. As much as 39% of respondents stated that their “usage” of crypto is dominated by hodling.
The “hodlers” category is followed by 28% of respondents who prefer to use most of their crypto for buying other cryptos. The next 22% of respondents said that they mainly use their crypto for staking and lending — practices that allow users to earn rewards for securing the network or locking up their coins. Binance Research mentioned that staking is becoming increasingly popular with the ongoing Ethereum 2.0 upgrade.
Only 11% of respondents said that they mainly use their digital coins for payments, which once again demonstrates that the current level of crypto adoption is far from being associated with day-to-day payments in crypto.
65% of respondents held Bitcoin (BTC), making it the most popular option in the survey.