In a new report, a significant leak in the overall cryptocurrency market has been identified. The leak could be huge if it is not plugged immediately. By crypto bucket leak, we mean that the users are falling rapidly.
Research conducted by Flipside has just stated that user engagement has fallen by 80%. The fall has come in just three months. Therefore, such a rapid drop in just three months is alarming and can prove catastrophic in the grand scheme of things.
Flipside tracked several wallet activities over six months. Furthermore, users have been categorized into three distinct sections: low-value users, medium-value users, and high-value users.
The study shows that medium- and low-value wallets have the greatest tendency to cut and run after experiencing some turbulence. On the other hand, the wallets categorized as high-value wallets have shown lower signs of leaving the ship.
On the other hand, the cause behind such a rapid decline is not instability. In fact, it is mostly due to short-term incentives. Users are taking advantage of these incentives to make a profit and then abandoning the ship.
This tendency is largely due to a general lack of understanding of cryptocurrencies. In other words, most people only see or understand crypto in a limited sense. Hence, they fail to grasp the long-haul effect of crypto investment. This has led to a significant decline in prices.
