Meme coins have made some of the largest gains this year, and a recent report from Grayscale shows that they have even surpassed crypto giants in terms of popularity.
The Grayscale annual report shows that despite Dogecoin lacking many use cases, it was more recognized than Ethereum, the largest altcoin with a heavy technology backing. 74% of the respondents from the Grayscale survey stated that they have heard about DOGE, while only 56% stated they have heard of Ethereum.
Investors are diversifying with altcoins
The end of year study from Grayscale looks into the “perspectives and attitudes” surrounding Bitcoin. The report is comprehensive in that it also covers the opinions of investors regarding other cryptocurrencies.
The clear winner of this survey was Dogecoin, as the results proved that the meme coin was highly recognized. Moreover, the survey showed that Dogecoin was one of the most-owned investments because 44% of Bitcoin owners had some DOGE holdings.
On the other hand, 46% of Bitcoin owners held Ethereum. This is unexpected, given that Ethereum stands as one of the most utilized tokens in the market, as it is needed for all transactions on the Ethereum blockchain.
The survey shows that Bitcoin, Ethereum and Dogecoin are three of the most popular cryptocurrencies. The level of awareness for the other assets such as Cardano, Tether and Litecoin stands at only 25%.
However, the entire report shows that diversification stands at a high level, given that 87% of those who own Bitcoin also have at least one altcoin in their portfolio.
Dogecoin stands as one of the best gainers this year regarding both value and the increased number of holders. The coin’s growth has been mainly attributed to Elon Musk, Tesla’s CEO, who has severally promoted the meme coin in his Twitter pages.
Recently, Musk stated that Tesla was looking towards selling some of its merchandise in Dogecoin. Despite only launching as a joke during the early years of Bitcoin, the meme coin has ranked as one of the largest cryptocurrencies in the market, with a market capitalization of more than $21 billion.
Crypto adoption in the US at record highs
The level of crypto adoption in the US has been at record highs because of the rising inflation rate. The report states that 26% of US residents currently own Bitcoin. In 2020, this figure stood at 23%.
The data also shows that half of those who own Bitcoin invested in the token during the past 12 months, proving that the level of crypto adoption in the US is at record highs.
Despite the volatility in the market in recent weeks, the study shows that two-thirds of the people who bought Bitcoin a year ago are still holding the asset today.
77% of the respondents in the survey also state that they are willing to invest in a Bitcoin ETF if it is approved by the US Securities and Exchange Commission (SEC). A few months back, the SEC approved a futures-based ETF by ProShares and Valkyrie, and while they saw high trading volumes, investors are still calling for a spot crypto ETF.
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