People Around The World Turn to Crypto as Protection Against Inflation

People are leaning into crypto because rising prices and shaky currencies make traditional savings feel unsafe. What started as a niche trade now plays into everyday planning, with MEXC data showing a sharp rise in people using digital assets to fight inflation. Regional patterns differ as East Asia and the Middle East treat crypto as protection from price pressure, Latin America frames it as a social and income tool, and South Asia drives trading volumes. Portfolios reflect this mix with public chain tokens still dominant, stablecoins in about half of wallets, and mid-sized balances growing as capital spreads beyond whales.

Crypto Adoption Rises as an Inflation Hedge and Expands into Daily Use

In the second quarter of 2025, the share of users turning to crypto as an inflation hedge rose from 29% to 46%. The shift reflects lived realities as weakening currencies push people toward assets that feel harder to dilute, supported by 24/7 markets, simple onboarding, and borderless transfers. Growth varied by region, with East Asia jumping from 23% to 52%, the Middle East rising from 27% to 45%, Latin America embracing it through community acceptance, and South Asia showing strong future activity.

While many still trade short-term, more holders now see coins as protection against instability. Public-chain tokens remain the backbone at over 65%, stablecoins are held by about half, and the mix balances long-term value with liquidity and flexibility. Alongside these portfolio shifts, everyday crypto applications are expanding as well. Online crypto casinos highlight this trend, where tokens are used not just to store value or hedge inflation but also to fuel digital entertainment. Gambling expert Grace Thompson notes in her list of the leading Bitcoin casinos review platforms that players enjoy access to thousands of provably fair games, lightning-fast deposits and payouts, plus perks like welcome rewards, free spins, and cashback offers. These features have sparked a surge in how crypto is used within the entertainment sector.

Beyond gaming, crypto is also gaining ground in real estate and travel. Property transactions now increasingly accept digital assets for houses, apartments, and land, with faster settlements and fewer cross-border barriers making them attractive. In travel, airlines, hotels, and booking platforms are beginning to take crypto for flights, stays, and experiences. This not only adds convenience for travellers but also shows how digital assets are moving from speculative holdings into everyday spending. As real estate, travel, and entertainment increasingly adopt crypto, these uses strengthen its role as a practical hedge, showing that in inflationary times, digital assets are not only held for value but also used across everyday economic activity.

Inflation Hedge Gains Ground in East Asia and the Middle East

East Asia posted the sharpest increase in inflation-hedge usage, rising from 23% to 52%. People in the region faced currency swings and tighter rules in parts of the market, so they rebalanced. The result was less reliance on very large balances and more spread across mid-tier wallets, which suits users who want flexibility without drawing scrutiny. The Middle East saw a similar pattern with a move from 27% to 45%, driven by concerns about purchasing power and a desire to keep savings in instruments that feel less tied to local inflation.

These numbers tell a clear story. When inflation and currency risk rise, crypto becomes a pressure valve. Not every buyer is a long-term believer, but many see merit in holding some portion of wealth in digital form, especially when traditional options feel limited or slow.

Latin America and the Culture of Community Investing

Latin America stands out for its social energy. Holders in the region show the highest engagement with meme coins, with 34% owning them. That share reflects a market that values community, shared stories, and the thrill of backing a token together. It is not only about jokes or viral moments. The same survey notes that 63% of new users arrive looking for passive income. People hunt for crypto yield through staking, savings products, or loyalty programs, often discovered through community channels.

Retail investors drive this setting. Activity surges around launches, seasonal events, or local headlines, then spreads through group chats and creators. The region also shows strong confidence in public-chain assets, with 74% of users holding them. That mix of community momentum and core holdings creates a market that feels lively yet anchored.

South Asia’s Position as a Global Trading Hub

South Asia keeps building a reputation for crypto trading.  Spot volumes rose in South Asia from 45% to 52%, topping the global average. More than half of users say financial independence is the main goal, which helps explain the appetite for active strategies. Futures participation is high at 46%, and mobile access plays a central role. Many people rely on phones for finance, so exchanges that run smoothly on low data plans and modest devices gain an edge.

The region’s growth comes not just from tech enthusiasm. Limited access to traditional banking in some areas nudges users toward platforms that stay open around the clock and support multiple payment rails. Compared with Europe, which sits closer to global averages and expands at a steadier pace, South Asia moves quickly, marked by energy and a focus on short-term opportunities.

Portfolio Composition and Token Preferences

Public blockchain tokens remain the backbone of portfolios worldwide, with more than 65% of users holding them. Confidence runs highest in Latin America at 74% and in Southeast Asia at 70%, where these assets are treated as the core to hold through cycles. Stablecoins, held by nearly half of users, serve as the cash leg for remittances, hedging, and moving quickly between markets. In East Asia, large wallets above $20,000 declined from 39% to 33%, while mid-sized wallets grew, pointing to broader participation and healthier market depth.

Capital Flows and Regional Dynamics

Money moves differently across regions. For instance, East Asia favours careful sizing and mid-level balances to handle swings, while Latin America leans on social proof and yield with meme coins as entry points, and South Asia prizes execution with low fees and broad product ranges. Still, users everywhere share three needs, which include protection from inflation, yield above bank rates, and mobile-friendly tools. Crypto meets them through stablecoins for stability and public-chain tokens for long-term upside. Together, these patterns show how a global market adapts to local conditions while still circling back to the same core drivers of trust, access, and growth.

Toward Structured Trading and Diversified Portfolios

Analysts expect less pure speculation and more structure. Crypto day trading remains active, especially in South Asia, but more users now split holdings into buckets with core positions in major public-chain assets, working balances in stablecoins for payments, and smaller sleeves for high-risk tokens. Education from exchanges and wallets is nudging people toward position sizing, stop-losses, and clearer time horizons. The rise of mid-sized wallets supports this shift, reducing reliance on a few large holders and fostering steadier order books. Product design also matters as users favour apps that enable recurring buys, show transparent fees, and allow seamless settlement across markets.

Global Rankings and the Spread of Adoption

The 2025 Chainalysis index places Ukraine at eighth and Russia at tenth in global adoption. Those rankings show how far the market now stretches and why it keeps going up, moving beyond major financial hubs and mature capital markets into regions where inflation bites, banking access is limited, or borderless money is valued for savings and transfers. Motivations differ, from shielding against rising prices to joining active communities or using fast, low-cost tools, yet portfolios show a shared pattern with public-chain tokens at the core, stablecoins for liquidity, and mid-sized balances pointing to broader reach. The story is not singular but a patchwork of local trends shaping global growth.