TikTok Making Huge Impact On The Crypto Market

• • The future of DeFi is on Tiktok
  • Gen Z doesn’t have disposable income but is well-informed thanks to short videos on TikTok

As of last year, TikTok hit three billion downloads. The social media network has more than one billion active users monthly. In the United States and many other countries, TikTok is more popular with Generation Z  than other social media platforms such as Instagram.

Over the last six months, Bitcoin has had a drop of more than 70% from its all-time high of $69,000 in 2021. Market volatility is to be expected. More people need to embrace decentralized finance (DeFi) for it to have a future. The changes in market volatility as well as cynicism towards crypto, make many investors shun investing in crypto. However, Gen Z is not your everyday investor.

Finance-related content has been seen to be appreciated and welcomed by many TikTok users. It has become so popular and has been nicknamed FinTok. The content has seen a big rise as well as the social network itself. Last year, the hashtag #Crypto pumped up getting 1.9 billion videos. Videos tagged #NFT increased by an astonishing 93,000% which was fueled by the rise of interest in NFT. Videos with the hashtag #StockTok had around 1.4 billion views.

The interest in money management videos is not only limited to the crypto market. The hashtag #PersonalFinance has gained more than 4.4 billion views in the last year, with content covering everything in finance from savings, budgeting, and debt. Judging by the data from TikTok, Gen Z has an interest in financial information and it is easy for them to consume it with a short video and catchy sound or a viral dance.

According to a survey by CNBC, 18 to 34-year-olds make up 15% of cryptocurrency investments, as compared to 11% of 35 to 64-year-olds and a tiny 4% for 65-plus-year-olds. Around 21% of 18 to 34-year-olds see crypto as a short-term investment and regard to it as a 12-month strategy.

According to Credit Suisse’s global investment returns yearbook, Gen Z will get a third less on traditional stock and bond investments than past generations.

Gen Z is not only educating themselves about cryptocurrency but also embracing matters regarding finance. A research report by Bank of America showed that the COVID-19 pandemic will make an impact on Generation Z’s financial future in a similar way it impacted the millennials. Therefore the majority of Gen Z does not have money to invest in crypto but they could in the future. This is possible since they are interested in matters of finance as the data suggests. And, that’s where the opportunity lies for DeFi.