Crypto Trends: Tether, Bitcoin, and Memecoins Dominate Indonesian Market

Jakarta. In the first quarter of 2024, the most traded cryptocurrencies in Indonesia were Tether (USDT), Bitcoin (BTC), and memecoins such as Pepe (PEPE), Shiba Inu (SHIB), and Dogecoin (DOGE).

“There has been a shift in cryptocurrency preferences compared to the fourth quarter of 2023, when Render (RNDR) and Solana (SOL) were among the top five traded assets along with BTC and Ethereum (ETH),” said Tirta Karma Senjaya, Head of the Bureau for Development and Supervision of Futures Trading at the Commodity Futures Trading Regulatory Agency (Bappebti) during the seminar “Bappebti’s Steps to Develop Indonesia’s Crypto Market” on Thursday.

According to a survey conducted from December 2023 to January 2024 by the Indonesia Crypto Network in their report “Latest Survey: 5 User Behaviors of Indonesian Crypto Investors,” currently, 53 percent of Indonesians investing in crypto allocate more than Rp 500,000 ($35).

Tirta Karma Senjaya noted that by the first quarter of 2024, the number of crypto investors in Indonesia reached 20 million, an increase of about 570,000 investors compared to February 2024’s 19.18 million investors, with transaction values reaching Rp 211 trillion. Despite this surge, the industry faces many challenges, primarily complex regulation.

“A good regulation should still provide room for innovation and exploration for the industry and its ecosystem supporters while ensuring investment security,” he said.

Tirta added that this challenge is a shared responsibility, especially for the government, to regulate blockchain usage. “We believe that development from the upstream side will bring benefits to Indonesia,” he said.

At the same event, Malikulkusno Utomo, General Counsel of Pintu Kemana Saja (Pintu), a crypto investment platform, mentioned that the crypto industry in Indonesia faces regulatory challenges due to its fast-paced and dynamic nature with various cases emerging daily.

“Spot trading is just one product, while there are many others like decentralized finance (DeFi), web3, non-fungible tokens (NFT), and other crypto products that pose challenges for everyone,” he said.

He emphasized the importance of educating the public amid the rising number of investors to not only boost market penetration but also enhance investor understanding of the risks involved in crypto investments. “Investors should conduct research, determine risks, and allocate a wise percentage of funds to be invested in crypto assets,” he added.

CEO of crypto exchange Tokocrypto, Yudhono Rawis, projected that the value of crypto asset transactions in Indonesia could reach Rp 800 trillion within a year.

“For the second half, perhaps the third and fourth quarters, the average might rise from Rp 160 trillion per quarter to around Rp 200 trillion per quarter. So, approximately Rp 400 trillion in the second half of this year,” Yudhono said.

He explained that the official approval of Bitcoin (BTC)-based ETF products, followed by potential Ethereum (ETH)-based ETFs in the United States, has had a positive impact on the crypto asset market both domestically and globally.

The US Securities & Exchange Commission (SEC) approved the Bitcoin (BTC) ETF on January 12, and recently, an Ethereum (ETH)-based ETF received the green light and is projected to launch by the end of this year.

“I believe this will drive the market globally, pushing Bitcoin and Ethereum prices higher in the second half of the year. Consequently, trade volumes will improve as well,” Yudhono concluded.

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