Binance Research: Up to 40% of Turkey's Population Holds Cryptocurrency Assets

Binance Research conducted a study on Turkey and found that the cryptocurrency market in Turkey is flourishing, with 2 out of every 5 individuals owning cryptocurrency, making it the fourth largest country in terms of cryptocurrency ownership this year. However, the active market may be a result of the severe hyperinflation in the country.

Conclusion

• Nearly 50% Adoption Rate: Turkey has a relatively high cryptocurrency adoption rate compared to other countries, with about 40% of the population having purchased cryptocurrencies, ranking fourth globally in terms of trading volume.
• Lira Dominates Trading Volume: The Turkish fiat currency, Lira, is the largest fiat trading pair on Binance, accounting for 75% of all fiat trading pairs.
• High Inflation in Turkey: Since the outbreak of the pandemic, Turkey's Consumer Price Index (CPI) has averaged between 40% to 80%, maintaining a high inflation rate.

Booming Cryptocurrency Market in Turkey

40% Cryptocurrency Adoption Rate

Turkey has a relatively high cryptocurrency adoption rate compared to other countries, growing by 250% in the past three years, with approximately 40% of the population having purchased cryptocurrencies. Cryptocurrency assets are one of the popular investment categories locally. According to the Chainalysis Global Cryptocurrency Adoption Index, Turkey ranks 12th.

64% of Turkish respondents believe that cryptocurrency prices will rise next year, and 73% believe that the number of cryptocurrency investors will increase in the next five years, thereby continuously increasing the local cryptocurrency ownership rate.

Ranked Fourth Globally in Cryptocurrency Trading Volume

According to cryptocurrency trading volume, Turkey ranks as the fourth largest market globally, with the top three being the United States, India, and the United Kingdom. The report suggests that the challenging economic environment in recent years, along with the public's interest in blockchain innovation, has contributed to the relatively high cryptocurrency adoption rate and trading volume in the country.

The Turkish fiat currency, Lira, has become the largest fiat trading pair on Binance, accounting for 75% of all fiat trading volume in early September this year, indicating the enthusiasm of Turkish people in the market.

Cryptocurrency Assets Popular Investment in Turkey

Turkish people generally consider cryptocurrency assets as important investment tools. The proportion of respondents investing in cryptocurrency assets is 21%, exceeding the proportions of investors in precious metals, stocks, bonds, and real estate.

Characteristics of Turkish Investors

Active and Rapidly Growing Investors

Currently, 27% of investors in Turkey holding cryptocurrency assets have entered the industry in less than a year, meaning more than a quarter of investors entered the market during the bear market of the past year.

Among the respondents, as many as 71% of investors check market trends multiple times a day, and 46% of respondents trade at least once a day on average, indicating the enthusiasm of local people for cryptocurrency investments.

Attracted by Expected Profits

Among the respondents, 66% of people invest in cryptocurrency assets for their expected profits, followed by simple investment portfolio management at 56% and optimism towards technology at 40%.

However, with Turkey's recent poor economic conditions, it is believed that the majority of people buy cryptocurrency assets not only for profit but also for hedging purposes.

Poor Economic Conditions in Turkey

According to data, Turkey's local Consumer Price Index (CPI) remains above 60%, severely affecting the lives of local people due to high inflation. The Lira has significantly depreciated, leading to Turkish people starting to invest in cryptocurrency assets, such as BTC and stablecoins, as more stable investment options in the past two to three years.

President Erdogan of Turkey believes that raising interest rates cannot solve inflation. Therefore, while most countries were raising interest rates last year, Turkey insisted on lowering interest rates to encourage consumption in hopes of boosting economic development, a move criticized by many economists as a large-scale economic experiment.

However, the government began attempting to raise interest rates in June this year, but the effects on combating inflation have not yet been evident. It is expected that in the short term, Turkish people will continue to purchase cryptocurrency assets.