Traders’ appetite for risk is increasing? Seems the case with Bitcoin, Ethereum, BNB, ENJ, UNI
The crypto-market has been rather unstable over the past month. The king coin’s correction phase and its subsequent downtrend triggered an increased volatility phase for altcoins as well. The global crypto-market cap that had touched the $2.5-trillion mark in May came crashing down to 1.3 trillion, at the time of writing, highlighting a 47% drop.
Well, it will be fair to say that with the fluctuating prices, trader behavior and market sentiment haven’t been exactly the same as they were a year back. A recent survey on traders found out that while crypto-trading is still considered to be a risky affair, 82.3% of the respondents found it to be more profitable than stocks.
The survey further highlighted that Bitcoin (BTC) remained king, with around 2,508 individuals holding it over the past year. This meant that over 80% of all survey respondents held Bitcoin at some point over the past year. Ethereum (ETH), on the other hand, came second with 1,963 owners, accounting for two-thirds of the survey’s total sample size (it was 50% last year).
Bitcoin, Ethereum, and Binance Coin (BNB), the top three cryptocurrencies by market cap, comfortably took the top spots on traders’ holdings list, according to the survey. DeFi assets like Enjin Coin (ENJ) and Uniswap (UNI) too saw a decent representation with 14.3% and 9.4% ownership figures, respectively.
Meanwhile, Dogecoin (DOGE) ownership stood out the most with 8.4% of respondents owning it over the past year. The joke coin’s tremendous success and attention in recent months, according to the report, can be attributed to “attention from high profile individuals such as Elon Musk.”
Surprisingly, top coins by market cap like XRP and Cardano didn’t make it to the list of coins held by traders in this survey. On the contrary, others like Enjin Coin (ENJ), ranked 71st on CoinMarketCap, saw an overwhelming response.
BTC Market cap down, but popularity still up
The aforementioned survey also found that over 85% of traders believe that Bitcoin is a safe haven asset. Despite the hike in its value and major corrections, a vast majority of traders remain optimistic about Bitcoin’s price movement for the rest of the year.
This was the case with BTC’s popularity in last year’s survey as well. Even though Bitcoin’s market cap has seen a staggering drop of around 46.8% since mid-April, it was still 256.8% up, when compared to last year’s levels.
The report further highlighted that around 30% of professional traders expected Bitcoin’s price to be at its press time level, while 34% are still waiting for even higher prices. While future price optimism is highest among novices (39.7%) and regular users (43.7%), advanced traders (been in the market for more than 3 years) remain wary of an imminent downturn.
Will Ethereum 2.0 turn out to be game-changer?
Ethereum, with a market cap dominance of 16.49%, is awaiting its London upgrade. London went live on the Ropsten testnet on 24 June, followed by Goerli on 30 June, and Rinkeby on 7 July. Given this scenario, the survey questioned traders if they believed ETH 2.0’s launch will affect its price.
59.1% of the surveyed individuals were convinced that Ethereum 2.0 will lead to higher prices. On the contrary, 27.3% responded negatively, and 6.6% expressed uncertainty.
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This article was first written on yusmid.com