A recent extensive update from crypto asset platform CoinGecko revealed that the Philippines is the leading country in Southeast Asia showing overall interest in degen crypto and small cryptocurrency tokens.
of research study A report released by CoinGecko examines the total number of visitors to Geckoterminal, DEX Screener, and DEXTools by country from April 2023 to March 2024, based on Similarweb data. This attempt at comprehensive analysis helps chart global interest and trends in small-cap cryptocurrency tokens and provides valuable insight into the evolving landscape of digital assets.
for those unfamiliar with, Degenerate ciphers are also called “degenerate ciphers”. This term refers to high-risk speculative investments in small-cap stocks or low-market-cap cryptocurrencies that often have little or no established track record or utility.
These tokens are typically created and promoted through online communities with the aim of generating quick profits through speculation and hype.
Small cryptocurrency tokens are tokens with a relatively low market capitalization, typically less than $1 billion. These tokens are often associated with new projects and initiatives that have not yet been widely adopted or recognized.
A successful project can yield large profits, but it also carries a high risk of failure and price fluctuations.
Degen Major Cryptocurrency Countries
According to a CoinGecko research report, the country with the most decline in cryptocurrencies is the United States, which “accounts for 16.8% of global interest in small-capitalization cryptocurrencies according to on-chain DEX trackers.” As previously mentioned, the term “degen crypto” is used within the cryptocurrency community to describe highly speculative and often risky investments in cryptocurrencies, especially those with low market caps or meme coins. . These investments are characterized by the possibility of not only high profits but also high losses.
Besides the US, other major cryptocurrency developing countries include the UK with 6.2% interest in so-called “shitcoins” or meme coins, followed by the Philippines with 5.1% interest. The top 25 countries with the most crypto penetration account for the majority of on-chain speculation interest, 77.8%.
The top 25 countries with the most crypto penetration account for the majority of on-chain speculation interest, 77.8%.
Southeast Asia Interest in Small Cap Tokens
CoinGecko’s report shows that neighboring Southeast Asian countries such as Indonesia (4.0% share), Vietnam (2.9%), Thailand (1.2%), and Malaysia (0.9%) have relatively high interest in cryptocurrencies with small market capitalization. It emphasizes that there is. It is her second most represented region after the European Union (EU) and ranks among the top 25 degen cryptocurrency countries in 2024.
In the context of these Southeast Asian countries, the impact of degen cryptocurrencies and small-cap tokens is particularly pronounced in attracting retail investors and promoting speculation. Several factors contribute to this regional trend.
High mobile and internet penetration: The proliferation of mobile phones and internet access in these regions has made crypto trading platforms more accessible in recent years, allowing more people to participate in crypto investing and trading and lowering the hurdles for individuals. became.
Accessibility and affordability: Many small-cap tokens are relatively affordable, allowing individuals with limited funds to invest in them. This led to a surge in retailer participation driven by fear of missing out on potential profits (FOMO).
Young population: Southeast Asia’s demographics are relatively young, tech-savvy, and open to new technologies, including cryptocurrencies.
Older generations in the region may be seeking more risk-averse investment opportunities or may not have the knowledge base for digital investing, while the above demographic may be looking for high-risk, high-reward investments like small-cap tokens. Much more likely to engage in investing.
Regulatory environment: Some countries in Southeast Asia have been slow to introduce comprehensive regulation of cryptocurrencies, creating an environment in which speculative activity can more easily flourish.
Meanwhile, regional regulators have stepped up oversight and legislation in this area, with some cracking down in the wake of suspected crypto-related scams and the widely publicized collapse of crypto exchanges. There are also regulatory authorities such as Monetary Authority of Singapore (MAS) And that Pilipina Bangkok Central (BSP) In fact, we are moving toward licensing and regulating virtual asset entities, ensuring some degree of investor protection while fostering a more collaborative and secure environment for legitimate cryptocurrencies to thrive.
economic situation: Many countries in Southeast Asia are experiencing varying degrees of economic volatility, with individuals increasingly seeking alternative investment opportunities that offer higher returns compared to traditional financial products. Cryptocurrencies, especially small-cap tokens, are an attractive option due to their potential for rapid growth.
Remittances and financial inclusion: Cryptocurrencies provide a cheaper and faster means of sending money, which is vital for countries. like the philippines There are also many employees working overseas. Additionally, it provides financial services to the unbanked and promotes financial inclusion.
Southeast Asian countries came in 3rd, 5th, 9th, 19th and 24th place on the 2024 list.
Other notable countries trading Small Cap tokens
Nigeria is the only African country to feature in the top 25 countries for virtual currency cryptocurrencies and is the 6th most interested country with a share of 3.9%. The countries with the most interest in on-chain transactions within the European Union (EU) are France (her 4.4% share of global interest), the Netherlands (3.0%) and Poland (2.4%). In total, six EU member states ranked among the top 25 countries in the world.
Remarkably, 18 of the 25 most crypto-popular countries are members of the G20, an international forum of economically important countries, a CoinGecko report reveals. Ta.
The speculative nature of the virtual currency market
However, the high-risk nature of degen crypto and small-cap tokens has also led to concerns over investor protection and market integrity. Many of these tokens are Pump and dump method, pull the rug (when developers abandon a project and run away with investors’ funds), and other fraudulent activities.
In addition to speculating which crypto tokens will provide long-term or short-term profits, it has recently been revealed that stablecoin trading It is not run by a real user.like recently report It states that over 90% of transactions performed on stablecoins are performed by bots and other entities that are not actual users.
Although these trends suggest that the cryptocurrency market is primarily dominated by speculative trading, the industry has made significant progress over the past five years. However, progress is still needed in terms of regulations and further guidelines from authorities to curb fraud without stifling innovation.
