Crypto staking has become the most popular use case for crypto in Singapore, according to a recent report by Coinbase and Seedly. The study, conducted in Q4 2023 and analyzing responses from over two thousand adults, revealed that 55% of Singaporean cryptocurrency investors have engaged in staking through centralized platforms such as Coinbase, Binance, or Kraken while defi apps like Uniswap, or Aave were used by 38%.
Crypto staking and DeFi are two ways of earning passive income in crypto, but they differ due to risk, reward, and control. Normally, crypto staking requires locking a particular amount of Crypto for some fixed period of time and receiving interest at an already agreed rate. On the other hand, Defi permits users to lend their crypto or borrow it without permission or trust someone else’s money and get fluctuating gains subject to supply and demand terms.
Crypto Staking Optimism In Singapore
Even with cryptocurrency market instability, the report showed that Singaporeans had faith in cryptocurrency. According to 56% of respondents, crypto will become the future financial system; 46% expect prices to go up within one year. The study also highlighted that more than half of the interviewed people (54%) employed stablecoins as a way to reduce risks connected with changing prices.
The market report issued by Coinbase stated how Singapore had become a regional blockchain and crypto innovation center with a vibrant and diverse crypto ecosystem. The study also showed that when it comes to selecting an exchange for digital currencies, security and fund protection are the most crucial factors for Singapore’s crypto-investors, as approximately 70% of respondents highlighted.
For the last few years, the cryptocurrency market in Singapore has experienced unprecedented growth, leading to various investments from all over the world. By 2023, Singapore and Hong Kong had financed more than 11% of crypto and blockchain start-ups around the world, as per data provided by PitchBook, a business information company.
However, the report also noted that there were certain challenges facing the crypto landscape in the region, such as FTX’s collapse in late 2022, which was among one of the world’s largest crypto exchanges, leading to a wave of bankruptcies and lawsuits by its partners and customers forcing various crypto companies in America to revise their strategies.
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