A Federal Reserve survey has indicated a decrease in cryptocurrency engagement among American adults, with only 7% reportedly using or holding digital assets in 2023.

The Survey of Household Economics and Decisionmaking (SHED), conducted in October 2023, revealed that the number of adults involved with cryptocurrency fell to 18 million, down from 10% in 2022 and 12% in 2021.

The survey also found that a mere 1% of adults used crypto for financial transactions, representing a 50% reduction from the previous year.

Despite the observed decline in cryptocurrency usage, the digital asset industry continues to exert influence in other domains, such as politics.

Public opinion surveys indicate that American voters expect presidential candidates to have a grasp of emerging technologies, including AI and cryptocurrency.

According to Coinbase, California’s crypto owners have the potential to affect the outcome of the 2024 elections

Although the Fed’s findings suggest a waning interest in cryptocurrencies as both an investment option and a transactional medium, it’s worth noting that the cryptocurrency market has flipped the switch this year.

In January, the U.S. Securities and Exchange Commission approved spot Bitcoin exchange-traded funds after denying the financial instrument for a decase.

By the end of October 2023, the cryptocurrency market was valued at around US$1.3 trillion, according to CoinGecko data.

That value has more than doubled and the market cap of the industry is estimated at US$2.675 trillion, as of May 23.