Bitcoin plummeted in 2022, but eToro users are not deterred. In general, despite the rough year for cryptoassets, crypto investors coalesced around big crypto names in 2022. Bitcoin not only retained the top spot among eToro’s most held cryptoassets, but Australian eToro users holding open positions increased by 53 per cent year on year. Other cryptos favored by eToro members include Ethereum (41 per cent) and XRP (+24 per cent) among significant risers in the top 10.
Nonetheless, some cryptos fell out of favor. Among those losing ground were Decentraland (-10 per cent), and Shiba (-10 per cent). There was little overall change in the top 10 most held cryptoassets over 12 months, Polkadot fell to 11th place from 10th, and was replaced in the top 10 by Terra Classic.
Blind faith?
What can explain the increase in open positions for the major cryptos? Blind faith? Not completely. Investors weren’t ready to give up on crypto assets. They have seen cryptos fall quite a few times, only to rebound and gain strength. Having said that, our data shows that investors were not gambling just on any crypto. Instead, Aussie investors sought security in larger crypto assets such as bitcoin and ethereum instead of altcoins such as Shiba, relying on bitcoins market capitalisation to navigate the treacherous market conditions.
| Most widely held cryptoassets with eToro 2022 vs 2021 in Australia | |||
|---|---|---|---|
| Cryptoasset | 2022 ranking | 2021 ranking | % change in users |
| Bitcoin | 1 | 1 | +53% |
| Ethereum | 2 | 3 | +41% |
| Cardano | 3 | 2 | +11% |
| XRP | 4 | 5 | +24% |
| Shiba (in millions) | 5 | 4 | -10% |
| Dogecoin | 6 | 6 | +19% |
| Solana | 7 | 8 | +20% |
| Decentraland | 8 | 7 | -10% |
| Terra Classic | 9 | N/A | N/A |
| TRON | 10 | 9 | +6.5% |
Source: eToro platform data 00:00am 1st January 2022.
Which less known cryptos gained?
Outside of the national top 10, the cryptoassets that experienced the largest growth in open positions on eToro among global users over 12 months were The Sandbox (+203 per cent), Quant (+52 per cent) and Axie Infinity (+32 per cent). These cryptoassets rank 27th, 41st and 39th respectively on the platform for open positions.
| Cryptoasset which saw biggest rise in open positions globally with eToro in 2022 | |
|---|---|
| The Sandbox | 203% |
| Quant | 52% |
| Axie Infinity | 32% |
| Solana | 33% |
| Filecoin | 27% |
| Cosmos | 26% |
| Algorand | 25% |
| Polygon | 20% |
| Bitcoin | 20% |
| Celo | 19% |
Source: eToro platform data 00:00am 1st January 2022. Past performance is not an indication of future results.
Long term mindset
The past year has not been a positive environment for crypto investors. Yet, even with cryptoassets plunging, investors are picking up cryptoassets at a discounted price. Our data has shown that whether its conventional assets or cryptoassets, Aussie investors have a long term mindset. They judge assets over years and decades and not only over the last few months.
eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. eToro offers both real crypto assets as well as crypto assets as OTC Derivatives.
Real crypto assets are unregulated & highly speculative. Being unregulated, there is no consumer protection. Your capital is at risk.
Leveraged positions and short positions are OTC Derivatives, which are regulated financial products. OTC Derivatives are considered risky financial products, speculative and include leverage. Not suitable for all investors. Capital at risk. See PDS and TMD