Digital Assets: COVID-19 Lockdowns Boosted Crypto Demand at Revolut
Revolut, the digital challenger bank that allows crypto trading, revealed data on cryptocurrency trading on its app during the COVID lockdown.
Over 3 million customers in the UK use Revolut’s cryptocurrency trading service. Analysis of the data from the neo bank shows up interesting insights on cryptocurrency adoption and the effect of virus lockdowns on crypto trading. (Finextra)
Data on crypto trading
For the period from 16th to 30th March
In a knee-jerk reaction to the imposition of lockdowns in March, Revolut users dropped the average size of their digital asset purchases from $660 to $280, a decline of 58%, while the average amount of a trade plunged by 52%.
From hereon trading trends remained somewhat stable.
For the period from 20th April to 4th May
A surge in the price of BTC drew trading interest from Revolut’s subscribers, both for buying and selling cryptocurrencies.
|Buying Cryptos||Selling Cryptos|
|No of users||+68%||+38%|
|Amount of crypto||+57%||+36%|
|Amount per trade||+63%||+13%|
In other Revolut data:
- The most popular crypto asset on Revolut during March and April – bitcoin (51% of all trades)
- Older people wagered more crypto per trade compared to the younger generation. Average trade for 55-64-year-olds was $423, and that for the 18-24 year segment was $134
- Across all age groups, bitcoin was the most popular cryptocurrency to trade
- Britishers were prone to trading higher volumes and average amounts compared to Europeans.
Revolut has a dim view of central banks
In April, Revolut opened up crypto trading to all its customers. In a letter to users, the neo bank recalled that cryptocurrencies owed their genesis to the unprecedented actions taken by central banks during the 2008 global financial crisis.
Revolut observed that “given the recent economic upset, we are starting to see quantitative easing and currency devaluation happening again right now.”
It added that it was offering customers “the opportunity to explore different ways of diversifying, including through crypto, right now.”
The digital challenger bank even added a link to the Bank of England’s page on quantitative easing.
Related Story: Revolut Opens Up Crypto Trading To All Users; Cites 2008 GFC
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