From Gaming to Investing: Coingecko’s Report Uncovers the 8 Most and Least Popular Use Cases for Cryptocurrencies
Coingecko’s latest report on cryptocurrency reveals that crypto is programmable by design, which opens up limitless possibilities for its applications. While crypto has diverse potential use cases, it is predominantly treated as a financial asset, with investment, staking, and payment emerging as the top three uses, according to the study. On the other hand, lending or borrowing is the least popular crypto use case, lagging behind yield farming and governance.
The report analyzed the usage of eight crypto use cases, starting with investment, which was the most popular use case with 93.9% of crypto holders using it as a form of long-term investment. It is not surprising, given that Bitcoin, the market leader, and pioneer of cryptocurrencies, is commonly regarded as digital gold. The report also found that 37.9% of crypto holders view crypto as a permanent part of their financial portfolio, indicating their belief that it is here to stay.
Staking, which is a relatively new development, has become a popular activity with 88.8% of crypto holders participating in staking. The rewards offered through staking, combined with the emergence of beginner-friendly staking methods, likely drive this adoption.
Crypto payments ranked as the third most common use case, with 84.5% of holders having used crypto to make payments. However, the report notes that opportunities to purchase goods and services with crypto remain limited, which could explain why just 31.4% of holders use crypto for payments always or very often.
At least 81.0% of holders have speculated on crypto, making it the fourth most common use case. Speculation is facilitated by the low barriers to entry into the crypto industry, which allows for new projects and trading opportunities. Participation in token sales was the fifth most common use case with 79.6% of holders having used their crypto for this purpose.
Yield farming, on the other hand, was one of the least popular use cases, with only 74.7% of crypto holders having farmed for yield, trailing 14.1 percentage points behind staking.
Overall, the report highlights that crypto has numerous potential use cases beyond its current financial asset classification. However, for now, investment, staking, and payment remain the primary use cases for crypto.
Read more:
- Bitcoin Dominance Hits Highest Level In Nearly Two Years
- Santiment Report Suggests Massive Transactions May Have Pushed Bitcoin To $30K