Regulatory clarity and real-world use cases drove 63.5% consumer optimism for crypto’s near future and 88% long-term prognosis in Binance’s institutional poll.
The majority of institutional customers (63.5%) of Binance have an optimistic outlook on crypto assets over the next year, the cryptocurrency exchange has shown, despite the fact that unfavorable headlines have dominated news about cryptocurrency over the past year.
In the past year, the reputation of cryptocurrencies in general has suffered; the demise of FTX resulted in heightened regulatory scrutiny of the industry. The US regulator, the SEC, then filed a lawsuit against companies like Ripple, Binance, and Coinbase.
The results of the Institutional Crypto Outlook Survey, conducted by Binance Research and Binance VIP & Institutional, showed that 88% of respondents had a favorable outlook for crypto assets over the next ten years.
According to a poll conducted by Binance, institutional users think that greater legal clarity (25.3%) and an increase in real-world use cases (26.9%) will have a greater impact on adoption than increased costs (3.4%).
These results seem to point toward institutional participants having a longer-term perspective on the market as opposed to being more responsive to short-term market cycles.
Considering the optimistic outlook from respondents and how they express more belief in use cases as adoption drivers over prices, Catherine Chen, head of Binance VIP and Institutional, offered her perspective on the findings: “Institutions typically take a long-term horizon when they enter a new market, and our survey indicates that is likewise for crypto assets.
These results are consistent with Binance’s excellent institutional account growth rate, which has risen by 89% from the bull market’s peak in Q4 2021.
Findings from Binance
Despite the market developments over the previous year, 47.1% of investors kept their allocation to cryptocurrencies, while over a third (35.6%) increased it at the same time. Only 17.3% of participants chose to reduce their crypto allotment.
In addition, 50% of respondents said they planned to grow their budget during the following year, while 45.7% said they would keep it at the same level as it is now. Only 4.3% of investors said they planned to lessen their exposure to cryptocurrencies during that time.
What drives such a large number of institutional users to continue investing in cryptocurrencies? According to research by Binance, the possibility for high investment returns (42.8%) is the main incentive for cryptocurrency investors. About 37.5% of investors think that the main reason was to get long-term exposure to emerging technology.
The study also discovered that centralized exchanges continue to be the most common venue for custodial activities (58.2%) and institutional trading (90.5%). The top three factors used by institutions to choose a trading platform were liquidity (28%), security (26%), and reputation (22,5%).