Crypto currencies now constituted 17% of US consumer savings in 2023, according to an analysis by Stocklytics.com.
This positioned it as the second most favoured savings method in the US. The trend underscored the widespread adoption and utilisation of digital assets, a statement from Stocklytics said yesterday.
Financial analyst Edith Reads from the site said: “The expanding portfolio numbers serve as evidence of the escalating interest and momentum surrounding digital assets. The ascendancy of cryptocurrencies is on the rise and may eventually pose a challenge to our reliance on traditional cash assets in the future.”
Experts have predicted further growth in the cypto space in coming years.
It is projected to have a revenue of up to $23.2 billion in 2024 and $32.9bn by 2028, with a CAGR of nearly 10%.
“The increased savings in the US are only the beginning of the revolutionary journey of this digital asset,” Reads said.
“The unpredictable turns in our economic field call for vigilant and careful investments. Saving and investing in digital assets may be perilous…but most crypto companies keep their supply coins in check and only have them circulating in select numbers, preserving their value and creating a sustainable system of high demand and supply,” Stocklytics said.
The increased savings were also attributed to desire to spice up finance portfolios, as diverse assets were perceived as a safer option for investors.
“The massive uncertainty over crypto’s future is clearing up as time passes. Although digital assets lag behind savings accounts by over 30%, their lead over other saved assets like real estate and gold must be recognized. Crypto had an impressive 8% lead over gold and a marginal 2% lead over real estate,” the statement said.
The increased savings would help attract more investors and build an ideal ecosystem fostering crypto’s growth, the firm said.