In a recent survey conducted by the exchange, 63.5% of respondents expressed a positive outlook on the future of crypto in the coming year, while an overwhelming 88% conveyed optimism for the next decade.
Binance, the leading cryptocurrency exchange in terms of market value, has reported that its institutional clients are optimistic about the future of crypto for both the upcoming year and beyond. This information is based on a survey conducted by Binance between March and May 2023.
Conducted by Binance Research and Binance VIP & Institutional team, a study surveyed 208 clients between March 31 and May 15. Among the respondents, 52% managed crypto assets worth less than $25 million, while 22.6% had assets under management exceeding $100 million.
According to the report, 63.5% of the respondents expressed a positive outlook on the future of crypto for the next year, while a significant 88% conveyed optimism for the next decade.
Despite adverse market events in the previous year, the survey revealed that respondents remained committed to their crypto allocations. A notable 47% of institutional investors maintained their crypto allocations, with over a third choosing to increase their allocation. Only 4.3% of respondents indicated a plan to reduce their allocation to crypto in the next 12 months.
Despite the recent regulatory crackdown against Binance and Coinbase by the U.S. Securities and Exchange Commission, as well as the persistent bear market that began last year, institutional clients displayed a positive sentiment in Binance’s survey.
Regarding investment interests, the survey highlighted that 54% of investors considered infrastructure as the most significant area. Following closely behind, layer 1 projects garnered interest from 48% of respondents, while layer 2 projects were deemed important by 44% of participants.
Since the beginning of this year, web3 infrastructure has been highly favored by investors, particularly in the wake of the FTX implosion last year. The term “infrastructure” is broadly applied and encompasses various elements, spanning from inter-blockchain portals to on-chain wallets.
In a recent Series B funding round, blockchain infrastructure provider LayerZero Labs successfully raised $120 million, achieving a valuation of $3 billion. This valuation marks a significant tripling from its previous round of $135 million in March 2022.
According to the survey, the institutional investors considered NFTs, metaverse, and gaming sectors to be of lesser importance compared to other areas.
During the bullish market of 2021, NFTs and the metaverse witnessed a remarkable surge in popularity, highlighted by significant NFT sales such as “Beeple’s Everydays: the First 5000 Days” and Facebook’s rebranding to Meta to prioritize the metaverse. However, the subsequent bear market led to a decline in hype, resulting in lower NFT trading volume and stagnant growth for the metaverse.
The metaverse industry experienced a brief resurgence of optimism following the introduction of Apple’s latest mixed reality headset.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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