Canadian Crypto Drive Slows in 2023, Users Cite Wider Market Factors

Last updated: November 29, 2023 23:42 EST
. 2 min read

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The number of Canadian cryptocurrency users has dropped in 2023 due to bear market fears and wider macroeconomic factors, a new survey shows.

A Crypto Asset Survey published by the Ontario Securities Commission (OSC) was conducted to show consumer interaction with virtual assets, investment experience, major drivers, and key market determinants.

According to the survey, Canadian ownership of digital assets fell from 13% in 2022 to 10% this year, signaling a poor trend some experts say was caused by plunging prices due to the bear market and tightening regulations.

Virtual asset utility plummets among holders

Participants hold the view that digital assets would not play a major role in sectors of the economy as was previously touted. Last year, 38% of the country believed that assets would be instrumental in the future of finance but presently only 26%.

Despite this, 34% of citizens believe the tide will turn in the future while 49% of users who held they believe in 2022. A shocking revelation by the survey in the declining interest of Canadians is that average ownership per user has increased.

This means that while the average number of users left the market, the remaining holders significantly increased their holdings as the mean market value surged to $82,992 this year from $52,975 in 2022.

Most notably, 77% of Canadian citizens regret being exposed to digital assets, a growth from 68% last year as the majority say their assets are not performing as they have anticipated.

In terms of exposure, over 50% of the country has a full grasp on the sector which often translates to increased adoption. A recent report by the Bank of Canada also shows that the country’s Central Bank Digital Currency (CBDC) project is not widely anticipated as users still prefer utilizing current payment options.

🇨🇦 Canadians Support Cash Payments Over CBDCs: Report

Canadians are less enthusiastic about a CBDC, opting for traditional payment methods despite wider awareness.#CryptoNews #Canadahttps://t.co/SZKtVxoXtY

— Cryptonews.com (@cryptonews) November 30, 2023

Canadians point to the crypto winter

The 2021 bull market led to a massive adoption across many jurisdictions as several assets climbed to new all-time highs and institutional investors showed a renewed stance in the market. The bull run led to many projections of users in traditional finance and increased decentralized finance (DeFi) numbers.

However, the following year was riddled with huge market crashes led by the Terra Network and subsequently FTX implosions which wiped billions off the market cap.

These events led to lower investor confidence with several traders recording losses coupled with regulators clamping down on most sectors of the market.

As a result, the prices of top assets including Bitcoin (BTC) and Ethereum (ETH) plummeted over 55%. This year has seen a major price uptick with several assets rebounding over 100% but most users are still in losses because they invested in 2021 amid high prices.