The retail crypto market has seen significant changes since the last cycle.
According to CoinDesk senior analyst James Van Straten, while there are fewer retail investors in the current cycle, they’ve become more sophisticated.
In the previous bull run, driven by COVID lockdowns in 2021 and 2022, retail investors played a major role in boosting crypto enthusiasm. Companies marketed digital assets through Super Bowl ads, celebrity endorsements, and sponsorships. After the market crash, the current cycle (starting mid-2023) is more institution-led, with ETFs and slow-but-steady adoption by traditional finance taking the spotlight.
Retail investors haven’t returned in the same numbers yet, except for the rise of memecoins.