What happened?
A new survey by MEXC suggests a significant shift in the perception of digital assets, with 46% of global crypto users now considering cryptocurrency as a hedge against inflation. This is a considerable increase from the 29% reported in the first quarter of the year. Regions such as East Asia and the Middle East have seen the most substantial rises, with crypto use against inflation soaring from 23% to 52% and 27% to 45% respectively.
Who does this affect?
This growing trend in the use of cryptocurrencies as an inflation shield affects crypto users globally, but is particularly significant in regions facing macroeconomic stress, such as East Asia and the Middle East. In addition, Latin America has emerged as a cultural hub for crypto, with ownership of “memecoins” like Dogecoin and Shiba Inu rising from 27% to 34%. South Asia also saw an increase, driven by a younger, mobile-first population seeking financial independence.
Why does this matter?
The shift towards using cryptocurrencies as a hedge against inflation is indicative of increasing suspicion towards traditional fiat currencies, especially in regions where inflation rates are high or currency value is weakening. These changing attitudes could transform market dynamics and move cryptocurrencies from being a speculative tool to a more mainstream financial asset. According to MEXC, if global macro pressures continue, “wealth protection” could become the primary reason for new users entering the market.