46% Use Crypto to Hedge Inflation, 63% for Passive Income — What This Means for Investors
Amid rising global inflation and regional economic pressures, a growing share of users now see crypto as a tool to protect wealth and generate income. Key Takeaways: 46% of users now enter crypto to hedge against inflati...
Amid rising global inflation and regional economic pressures, a growing share of users now see crypto as a tool to protect wealth and generate income.
Key Takeaways:
- 46% of users now enter crypto to hedge against inflation, up from 29% last quarter.
- Latin America leads in passive income adoption, with 63% of new users citing it as their main entry point.
- Wealth is shifting toward mid-tier wallets as high-net-worth holdings decline in East Asia.
According to MEXC’s H1 2025 user survey, 46% of global users now cite inflation protection as their primary reason for entering crypto, up from 29% in Q1.
The shift is most pronounced in East Asia, where that figure more than doubled to 52%, and the Middle East, which rose from 27% to 45%. With local currencies under pressure, crypto is emerging as a defensive asset.
Latin America Leads Crypto Surge as 63% Enter for Passive IncomeMeanwhile, Latin America is leading in community-driven adoption. Memecoin ownership climbed from 27% to 34%, the highest regional jump, and 63% of new users said passive income was their main reason for entering the space.
In contrast, South Asia has become the global center for trading activity. Spot trading reached 52% of all user activity there, while 53% of South Asian users cited financial independence as their motivation.
Across regions, public chain tokens remain the most widely held assets. Over 65% of users globally include them in their portfolios, rising to 74% in Latin America and 70% in Southeast Asia.
Stablecoin usage stayed steady at 50%, suggesting a balance between volatility hedging and yield-seeking.
The survey also highlights shifting wealth distribution. In East Asia, the number of wallets holding over $20,000 in crypto dropped from 39% to 33%, reflecting regulatory uncertainty and profit-taking.
However, mid-tier wallets ($5k–$20k) are on the rise globally, signaling broader participation.
Inflation around the world
2.28%
4.48%
3.22%
30.53%
Follow @truflation and track inflation trends. pic.twitter.com/JLADCzxGBN
Looking ahead to Q3, MEXC forecasts more users entering crypto for wealth protection, a continued rise in structured trading strategies, and expanding portfolio diversification.
With memecoins and AI tokens attracting short-term attention, core holdings like public chain assets are expected to remain dominant.
“From inflation hedges in East Asia to community-led growth in Latin America, adoption is no longer monolithic,” said Tracy Jin, COO of MEXC.
“Our focus is on delivering products tailored to local needs, while supporting a globally trusted crypto ecosystem.”
Over 50 Million Americans Now Own CryptoAn April Harris Poll commissioned by the National Cryptocurrency Association revealed that 21% of US adults, roughly 55 million people, own crypto, reflecting the sector’s shift into the financial mainstream.
Far from the stereotypical young tech crowd, holders now span a wide range of ages, professions, and income levels.
Nearly 9 million are over 55, and many use crypto not just for investment, but for everyday activities like payments, remittances, and gaming.
The study also showed that 76% of crypto users report a positive life impact, citing benefits such as financial independence and access to global markets.
While 39% have used crypto for payments, more than half view it as a long-term investment. The majority believe crypto can advance financial inclusion and innovation, though many express concern over harsh regulation potentially stifling progress.
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