Singapore ranks 9th globally in Crypto faith loss post-crash, Forex Suggest study shows

SINGAPORE: Singapore has emerged as the 9th country globally experiencing a significant loss in faith towards cryptocurrencies, according to a comprehensive study conducted by Forex Suggest.

The research, which analyzed various factors including Google searches, article publication, engagement, crypto ownership, crypto ATMs, and web traffic to major crypto exchanges, aimed to identify countries witnessing the most substantial decline in crypto confidence since the market downturn.

The study found that Singapore’s overall crypto interest score of 4.12 is influenced by a 45% decrease in Google searches, an 82% decline in the number of crypto-related articles, a 71% reduction in article engagement, a noteworthy 52% increase in the number of crypto owners, and a substantial 77% rise in web traffic to major crypto exchanges.

However, the country also witnessed a complete shutdown of crypto ATMs, contributing to the overall decrease in crypto interest.

Top 10 countries losing faith in crypto unveiled in Forex Suggest study

The data from the Forex Suggest study also reveals the top 10 countries that have experienced the most faith loss in crypto.

Norway claimed the top spot for the most loss in crypto interest, with a score of 1.86. The Nordic nation experienced a significant drop in news articles, plummeting from 1,324 in 2021 to just 118 this year, marking a staggering 91% decline.

Austria secured the second position with an overall score of 1.91, characterized by an 81% decrease in the number of articles and a drastic drop in article engagement to only 9% of its 2021 rate.

Ireland rounded out the top three, ranking last for web traffic with the smallest increase of only 10%. The country also witnessed a complete elimination of crypto ATMs, coupled with a 35% decline in crypto ownership.

Contrastingly, in the study, Japan emerged as the country with the highest crypto interest score of 9.02 out of 10, demonstrating the resilience of faith in crypto despite the market crash.

Argentina experienced the lowest drop in crypto-related searches since 2021, with a 70% decrease, while Japan exhibited the smallest decline in searches, only dropping by 20%.

When it comes to crypto articles, Norway has experienced the most substantial decline, plummeting by 91% compared to 2021. Conversely, the Netherlands has observed the most significant increase, with news articles surging by 38% since 2021.

Malaysian investors display the least interest in keeping up with crypto news, reaching only 5% of the 2021 rate in 2023. In contrast, Japanese investors exhibit the highest enthusiasm for engaging with crypto articles, experiencing a 13% rise since 2021.

Slovenia has witnessed the most pronounced decrease in crypto ownership rates, declining by more than half over the past two years. Conversely, the United Arab Emirates has recorded the most substantial increase in crypto ownership.

(Image via Forex Suggest)

Declining confidence in Cryptocurrencies in Singapore: Insights from IRCI March 2023

According to the Independent Reserve Cryptocurrency Index (IRCI), published on March 2023, Singapore’s confidence level in cryptocurrencies scored 55 out of 100, a decline from 61 in 2022 and 63 in 2021.

Factors contributing to this decline might stem from events like Bitcoin losing 60% of its value last year, the collapse of Terra’s UST stablecoin, and the prominent legal challenges involving the FTX crypto exchange, all of which have shaken confidence in the industry.

Despite this, 47 per cent of individuals from the survey have been investing in crypto for one to two years, with 46 percent investing between US$100 and US$1,000 per month.

Moreover, over half of them (54%) noted utilizing cryptocurrency as a means to add variety to their investment portfolios, 53% indicated being influenced by friends and family, and 47% attributed their interest to curiosity or media influence.

The survey, targeting Singapore residents aged 18 and above, aimed to assess their awareness, adoption, as well as confidence and trust levels in cryptocurrencies.

According to the poll, the percentage of female investors in crypto has risen to 37 percent, indicating a 6-percentage point increase from 2022.

Moreover, there is an increasing involvement in crypto among individuals with higher incomes.

The index also reported that 65 per cent of Singaporeans earning US$5,000 or more per month have ventured into crypto, marking a 6-percentage point increase from 2022.

Those who make US$7,000 to US$9,000 a month allocated the highest portion of their portfolio to crypto.

Additionally, the index revealed that 72 per cent of crypto owners hold more than 5 per cent of their portfolio in this asset.

One-third of the Gen Z demographic, individuals aged 18 to 25, express a desire to invest in cryptocurrency but mention that they lack the necessary resources to do so.