Crypto investors are increasingly expanding their horizons beyond the top cryptocurrencies as market conditions remain precarious, according to Robinhood’s crypto chief, Johann Kerbrat.
Kerbrat noted, “I think what we see from our customers is that they actually see it as an opportunity,” indicating a proactive stance as they seek to capitalize on market dips.
He elaborated, “So we actually see a lot of customers continuing to trade crypto and diversifying, not just on the top two or three assets, but actually going pretty wide,” suggesting that Bitcoin (BTC) and Ether (ETH) are still at the forefront.
Market Analysis
The Altcoin Season Index recorded a Bitcoin Season score of 33 out of 100 on Sunday, indicating investors are still heavily favoring Bitcoin over altcoins. Source: CoinMarketCap
Kerbrat indicated that investor sentiment may be shifting towards a more stable view of crypto as an asset class, embracing its volatility.
Investors Have a “Very Clear View” on Bitcoin and Ethereum
This follows statements from Coinbase Asset Management’s Anthony Bassili, who mentioned in November that investors still lack consensus on what the next significant cryptocurrency could be after Bitcoin and Ethereum.
Bassili previously noted that Solana (SOL) could be viewed as a potential third asset, although the clarity mainly remains with Bitcoin and Ethereum as primary investments.
Basil Al Askari, CEO of MidChains, shared that institutional traders are making substantial moves in major cryptocurrencies, particularly in the top 20, while not yet diving into smaller altcoins or DeFi products.
Furthermore, Kerbrat observed that more crypto holders are utilizing their tokens actively rather than merely holding. The introduction of staking on Robinhood has gained popularity since its launch, and users are starting to delve into decentralized finance despite market volatility.
Kerbrat expressed his surprise at the enthusiasm for cryptocurrency use cases: “It’s been pretty fun to see, to be honest. It’s always surprising.”
Despite prevailing economic trepidations, the Crypto Fear & Greed Index has sustained its position in ‘Extreme Fear’ throughout February.
US spot Bitcoin exchange-traded funds (ETFs) have recorded consecutive weeks of net outflows, totaling approximately $3.8 billion.
For more insights, check our feature on Bitcoin’s expected upgrade timeline.
