FameEX Hot Topics | Above 40% of Singapore's Population Now Hold Cryptocurrency

The increasing popularity of cryptocurrencies has been evident in Singapore, as recent data shows that over 40% of the nation's population now hold digital assets. A key factor behind this trend is the growing desire among investors to diversify their portfolios. According to the data, 77% of those holding digital assets, also known as HODLers, own two or more cryptocurrencies, with portfolio diversification being the primary reason for their investment.

Singaporeans have not only adopted cryptocurrencies at an impressive rate, but they have also shown an increased understanding of the asset class. A remarkable 91% of respondents said they are aware of digital assets, indicating a growing interest in the emerging financial technology. Among the cryptocurrencies, Bitcoin remains the most popular, with an 87% recognition rate. Ethereum, the second-largest cryptocurrency by market capitalization, trails behind with a recognition rate of 51%.

Lasanka Perera, CEO of Independent Reserve Singapore, commented on the rise in popularity of alternative cryptocurrencies, or altcoins, stating, “The rising popularity of altcoins shows that more Singaporeans are beginning to gain more awareness about other cryptocurrencies apart from Bitcoin.” He further explained that this is a positive sign for the industry, as it means more investors are being exposed to various types of blockchains and projects that have the potential for innovative utility and widespread adoption for real-world applications and use cases.

The primary motivation for entering the cryptocurrency ecosystem is diversifying portfolios, with 54% of respondents citing this as their reason for investing. The percentage is even higher among investors with five or more years of experience, at 68%. The pursuit of wealth comes in second place, with 48% of respondents indicating that as their driving factor for investing in digital assets.

Interestingly, social influences have played a significant role in attracting new investors to cryptocurrencies. Half of the respondents who started investing in digital assets during the past 12 months said they were influenced by family members, friends, or social media. This demonstrates the power of personal connections and online platforms in shaping investment decisions and encouraging broader adoption of cryptocurrencies.
In conclusion, the growing interest in and adoption of cryptocurrencies by Singaporeans showcases the potential for digital assets to become a more mainstream financial instrument. With a focus on diversifying portfolios and increasing awareness of the range of cryptocurrencies available, the future of the industry looks promising. As more people become educated on the utility and potential real-world applications of these digital assets, the expansion of the cryptocurrency market in Singapore is expected to continue on an upward trajectory.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.