Japan’s Crypto Trading Surge: 500,000 Daily Traders Expected by Year-End

• Bitget forecasts a rise to 500,000 daily cryptocurrency traders in Japan by the end of 2024.
• This increase is driven by enhanced regulatory compliance and the potential listing of cryptocurrency spot ETFs in the U.S.

As a blockchain expert analyzing recent developments in Japan’s cryptocurrency market, it’s clear that significant growth is anticipated. According to a report released by the crypto asset exchange Bitget on July 8, 2024, the number of active daily traders in Japan is expected to reach approximately 500,000 by the end of this year.

Current Trading Landscape

Presently, it’s estimated that between 310,000 and 360,000 individuals engage in daily trading on centralized exchanges in Japan. This market size places Japan between Turkey and Indonesia in terms of activity and represents about two-thirds of the activity seen in South Korea.

Bitget’s analysis suggests that future growth will be bolstered by global regulatory compliance developments and the introduction of spot Exchange-Traded Funds (ETFs) for cryptocurrencies in the United States. These factors are expected to attract more institutional and private investors into the Japanese cryptocurrency markets.

Characteristics of Japanese Crypto Users

Japanese cryptocurrency users are characterized by a preference for spot trading and holding mainstream assets such as Bitcoin, Ethereum, XRP, Solana, and Dogecoin, as well as tokens from local projects. In Japan, only stocks approved by the Financial Services Agency are permitted for trading, and derivative transactions are capped at a maximum of 2x leverage. It’s also noteworthy that moderate English proficiency in Japan could hinder the ability to explore new crypto projects.

Furthermore, the high tax rate on cryptocurrency gains, which can reach up to 45%, influences trading behavior. Many Japanese traders focus on long-term investment returns rather than short-term gains, reflecting a more conservative approach to cryptocurrency investments.

In terms of demographics, the male-to-female ratio of Japanese users on centralized exchanges is approximately 3:1, with a significant majority being male. The age distribution is fairly even between those aged 18-34 and those over 35, with younger users tending to prefer international exchanges, while the older demographic leans towards local exchanges.

Japanese traders also show a high level of engagement with specific cryptocurrencies like ADA, XRP, and locally-led projects like Aster Network (ASTR) and Oasis (OAS). This heightened interest is a distinctive aspect of the Japanese market compared to other regions.

Decentralized Exchange Preferences

Among decentralized exchanges (DEXs), PancakeSwap, Jupiter, and Uniswap are the most accessed by Japanese users. The preference for trading on the Solana and BSC chains over Ethereum and Base chains is a notable trend, suggesting a distinct strategic approach by Japanese crypto enthusiasts.

As the landscape evolves, these insights from Bitget provide a crucial understanding of how regulatory, demographic, and market-specific factors are shaping Japan’s cryptocurrency trading environment.

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