46% Utilize Cryptocurrency to Mitigate Inflation, 63% for Generating Passive Income — Implications for Investors

In the context of increasing global inflation and regional economic challenges, a larger proportion of users now regard cryptocurrency as a means to safeguard their wealth and earn income.

Key Takeaways:

• 46% of users now engage with crypto to mitigate inflation, an increase from 29% in the previous quarter.
• Latin America is at the forefront of passive income adoption, with 63% of new users indicating it as their primary motivation for entry.
• Wealth is transitioning towards mid-tier wallets as high-net-worth holdings diminish in East Asia.

As per MEXC’s H1 2025 user survey, 46% of global users now identify inflation protection as their main reason for entering the crypto market, rising from 29% in Q1.

This change is particularly notable in East Asia, where the percentage more than doubled to 52%, and in the Middle East, which increased from 27% to 45%. With local currencies facing pressure, cryptocurrency is becoming recognized as a defensive asset.

Latin America Leads Crypto Surge as 63% Enter for Passive Income

Simultaneously, Latin America is spearheading community-driven adoption. Memecoin ownership surged from 27% to 34%, marking the highest regional increase, and 63% of new users reported that passive income was their primary reason for entering the market.

Conversely, South Asia has emerged as the global hub for trading activity. Spot trading constituted 52% of all user activity in that region, while 53% of South Asian users cited financial independence as their driving motivation.

Across various regions, public chain tokens continue to be the most commonly held assets. Over 65% of users worldwide include them in their portfolios, with this figure rising to 74% in Latin America and 70% in Southeast Asia.

Stablecoin utilization remained consistent at 50%, indicating a balance between hedging against volatility and seeking yield.

The survey also underscores changes in wealth distribution. In East Asia, the percentage of wallets holding over $20,000 in cryptocurrency decreased from 39% to 33%, reflecting regulatory uncertainty and profit-taking behaviors.

However, mid-tier wallets ($5k–$20k) are experiencing growth globally, indicating broader participation.

Inflation around the world
2.28%
4.48%
3.22%
30.53%
Follow @truflation and track inflation trends. pic.twitter.com/JLADCzxGBN

— Truflation (@truflation) September 16, 2025

Looking forward to Q3, MEXC anticipates an influx of users entering crypto for wealth protection, a continued rise in structured trading strategies, and further diversification of portfolios.

With memecoins and AI tokens drawing short-term interest, core holdings such as public chain assets are projected to remain prevalent.

“From inflation hedges in East Asia to community-led growth in Latin America, adoption is no longer uniform,” stated Tracy Jin, COO of MEXC.

“Our aim is to provide products tailored to local demands while fostering a globally trusted crypto ecosystem.”

Over 50 Million Americans Now Own Crypto

An April Harris Poll commissioned by the National Cryptocurrency Association indicated that 21% of US adults, approximately 55 million individuals, possess cryptocurrency, illustrating the sector’s integration into the financial mainstream.

Contrary to the typical image of a young tech demographic, holders now encompass a diverse range of ages, professions, and income brackets.

Nearly 9 million individuals are over the age of 55, and many utilize crypto not only for investment purposes but also for daily activities such as payments, remittances, and gaming.

The study further revealed that 76% of crypto users report a positive impact on their lives, citing advantages like financial independence and access to global markets.

While 39% have utilized crypto for payments, more than half regard it as a long-term investment. The majority believe that cryptocurrency can enhance financial inclusion and innovation, although many express concerns regarding stringent regulations that could hinder progress.

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