US consumers see crypto as a lasting trend but doubt stablecoins

A recent survey by Deutsche Bank reveals that U.S. consumers are becoming more optimistic about cryptocurrencies, with fewer than 1% labeling them a "fad," a significant drop from previous years.

The survey, which covered over 3,600 consumers in the U.S., U.K., and Europe in March and July, indicates a growing acceptance of crypto as a viable asset class and payment method.

More than half of respondents see crypto as important, and 65% believe it could eventually replace cash.

Analysts Marion Laboure and Sai Ravindran from Deutsche Bank expect the democratisation of cryptocurrencies to continue over the next two to three years, driven by factors such as exchange-traded funds (ETFs), Federal Reserve policies, and regulations.

However, the sentiment is not entirely positive, particularly for Bitcoin (CRYPTO:BTC) and stablecoins.

The survey shows a somewhat bearish outlook for Bitcoin, with a third of respondents predicting its price will fall below $60,000 by the end of the year, while only 12%-14% expect it to exceed $70,000.

At the time of the survey, bitcoin was trading at around $58,200.

For the long term, opinions remain divided: 40% of respondents believe BTC will thrive in the coming years, while 38% expect it to disappear.

Stablecoins, which are designed to maintain a steady value, face an uncertain future according to the survey results.

Only 18% of respondents believe stablecoins will thrive, while 42% think they will fade away.

Stablecoins backed by fiat currencies like the U.S. dollar or traditional commodities such as gold were viewed as more likely to maintain their value.

Concerns about cryptocurrency volatility also persist, with over 50% of consumers expressing worry about the possibility of a cryptocurrency collapse within the next two years.

Despite these mixed sentiments, crypto adoption has remained steady in the U.S. and U.K., and the market could be poised for a rebound, according to Gemini's '2024 Global State of Crypto' report published earlier this week.