In a new research report, Binance Research has addressed the altcoin investment trends of institutional investors for the first half of 2023.
Binance Research assesses the status of the altcoin industry in 2023
The new report consists of a survey that explores the views of Binance institutional clients and VIP users on their trend towards the altcoin market in 2023. The Binance survey in question ran from March 31 to May 15. It covered questions about participants’ preferences, attitudes, adoption, and motivations for altcoin investments. The findings are as follows…
Allocation
The research examined more than 200 global institutional investors. This provided important information about the inclination of investors towards cryptocurrencies. Almost half of the respondents (48.1%) have more than 5 years of experience in crypto investing.
The research shows that about 47.1% of respondents did not change their crypto allocation in the past year, while about 35.6% of institutional investors increased their allocation in the same time frame.
Interestingly, half of institutional crypto investors plan to increase their allocations in the next 12 months. This represents a positive outlook on the market. However, 4.3% of these investors plan to reduce their altcoin allocations in the coming months.
Expectation
The crypto market has experienced different challenges in the last 12 months. Institutional investors have different views on the future of crypto. 63.5% of respondents say they are optimistic about the future of cryptocurrency in the next 12 months.
Interestingly, these investors expressed strong optimism for the next decade. When asked about their outlook on the crypto industry over the next decade, the level of investor confidence rose to a staggering 88.0%.
Institutional investors also expressed optimism about crypto adoption. However, they noted that regulatory clarity and real-world use cases will be key factors.
Which altcoins are institutional investors interested in?
Binance Research reported that institutional investors identified Infrastructure as the most important sector. An impressive 53.9% of respondents consider infrastructure as their priority. It is followed by the Tier 1 and Tier 2 sectors with 48.1% and 43.8%, respectively.
Confidence in artificial intelligence coins is growing
Also, 51.0% of investors were excited about the latest innovations in crypto wallets. These investors identified MPC, personal surveillance and advanced UI/UX as key areas to focus on. In addition, around 26.9% were affected by ZK technology. 20.7 percent rated AI and crypto integration as a key area of interest.
NFT and the metaverse are falling out of favor
On the other hand, respondents identified DeFi as their most popular category. The research listed spot DEXs as the most used dapps in the past three months. Perps DEXs, lending and LSD followed. However, investors rated the NFT, gaming and metaverse sectors as areas of low importance.
In terms of interests, 29.7% of respondents identified regulatory risk as their main concern. Meanwhile, 21.6% stated counterparty risk and 15.7% stated asset custody. Finally, 10.6% of respondents listed macroeconomic risk as their top concern for the industry.
DEX analysis
About 90.5% of institutional investors trade on centralized exchanges. According to the report, only 20.2% of respondents used corporate custodians to store their assets. Finally, only 14.9% of respondents used self-protecting cold wallets.
cryptocoin.com You can take a look at Binance Research’s April dated “Pulse of the Market” report, which we have cited as:
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