DeFi

90% of US accredited investors looking to invest in DeFi this year

  • 90% of accredited US investors would invest in DeFi
  • The investors believe Bitcoin is a store of value
  • They also think it is a bubble that would soon pop

A new survey published earlier this month revealed that 90% of accredited US investors plan to invest in Decentralised Finance (DeFi) before the end of the year. This is a massive win for the emerging market as it challenges the traditional financial system.

DeFi ecosystem gaining more support

Research conducted by Xangle, a blockchain firm that provides on-chain and off-chain data, revealed that 90% of accredited investors in the United States intend to invest in DeFi this year. Furthermore, 67% of the 379 respondents said they know about decentralized finance.

More than 10% of the investors are not sure as they don’t know much about DeFi to make such a decision. Cryptocurrencies have gained massive adoption over the past year, and the investors agreed with this. According to the investors, more people are investing in Bitcoin and other cryptocurrencies than before the Coronavirus pandemic.

According to the report, the investors consider the cryptocurrency to be a store of value that will yield high returns in the short-term and long-term.

Despite the optimism, some of the investors believe the lack of proper regulation of the DeFi and the larger crypto space makes it a problem for some people. 78% of the respondents believe regulatory agencies need to do more to protect investors from scams and similar activities.

In addition to the lack of regulation and scams, the investors feel a lack of awareness and education around the industry is another key reason why some people are yet to invest in cryptocurrencies.

Investors still believe Bitcoin is a bubble

Despite their bullish stance, more than 72% believe Bitcoin is a bubble. They believe the recent price surge is creating a bubble that would most likely pop soon. The investors believe Bitcoin has to stabilize for future investments. Those who are yet to invest in the cryptocurrency want it to become less volatile before buying. “For others, cryptocurrency is still too new of a market, or they just haven’t had the right opportunity,” the report added.

BTC remains the number one choice for the investors. If the investors had $100,000 to invest and have to leave it for four years, 31.7% of the respondents would choose Bitcoin while 29% would invest in blue-chip stocks.

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