The crypto industry is still in its early stages of growth, despite a significant increase in adoption rates. Experts believe that the sector’s future depends on factors like regulatory developments and market stability. Singapore has emerged as a leading crypto hub due to its favorable regulatory environment and government support, partly driven by China’s crackdown on cryptocurrencies.
Crypto Remains in ‘Hyper Growth Phase’
Although the Henley Crypto Wealth report estimated a cryptocurrency adoption rate of over 30%, which is considered relatively high, experts believe the crypto industry is still in its “early hyper-growth phase.” One expert, Hong Yea, an ex-Goldman Sachs trader, said the high adoption rate indicates that crypto is actually far from maturity and still has significant room to expand.
As the Henley Crypto Wealth report indicates, the number of crypto users is believed to have grown by 32% from just over 420 million in 2023 to 560 million in 2024. The report’s data also shows bitcoin (BTC) grew by an almost similar percentage (31%) to 275 million users. Yea, who is the co-founder of GRVT, likens what the crypto sector is experiencing to what happened to the fintech and social media industries during their initial stages of adoption.
Commenting on the split between overall crypto users and BTC users, Yea said:
“A decade ago, Bitcoin dominated the space, but today we see a much more diversified ecosystem. This reflects the broader accessibility of crypto and the possibilities and potentials of blockchain technology, with new solutions, technologies, and ideas emerging every day, making the industry appealing to a wider range of users beyond just Bitcoin.”
Singapore Benefits from China’s Crypto Crackdown
Meanwhile, another expert, Alberto Fernandez, Qubic Ecosystem Representative Europe, asserts that the growth rate of both crypto and BTC users “aligns with Bitcoin’s dominance index.” According to Fernandez, this dominance causes new users to be divided roughly 50% into altcoins and 50% into BTC.
Although many experts see the current adoption rate as very robust, Fernandez said sustaining this growth pace will largely depend on regulatory developments and market stability. He surmised that events similar to the 2020 pandemic could potentially accelerate the adoption rate.
Concerning Singapore’s ranking as the number one crypto hub globally, both Fernandez and Yea agree that the Asian country’s favorable regulatory environment and the government’s support for innovation in the crypto sector are the key factors behind it. However, Fernandez also goes on to link Singapore’s status as the best place for crypto startups to China’s ban or crackdown on cryptocurrencies.
“I believe the main cause is China’s ban on cryptocurrencies, which has led to an exodus of entrepreneurs to Singapore, further catalyzing its development,” Fernandez argued.
As the data in the recent Henley Crypto Adoption Index show, Singapore is ranked the number one global crypto hub. It is ahead of Hong Kong, the United States, and the United Arab Emirates (UAE), which is increasingly seen as a haven for crypto startups.
However, according to Yea, Singapore has managed to attain this position because it built its reputation as a crypto startup safe haven long before others. Being one of the early jurisdictions to recognize crypto gave the Asian nation an early-mover advantage and the resulting network effects. Singapore’s balanced living conditions meanwhile make it a more attractive destination for people looking to relocate, the former Goldman Sachs trader added.
Source: Bitcoin
