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TEXXR

Chronicles

The story behind the story

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Despite huge ad campaigns by crypto companies, a Pew survey of US adults shows those trading crypto has stayed flat at 16% from September 2021 to July 2022

The majority of Americans remain immune to the industry's sales pitches, Pew survey finds  —  Over the past year, crypto companies like FTX

Washington Post Steven Zeitchik

Context & Ripple Effects

The flat 16% reading confirms what Pew's own November 2021 survey already showed: even at the peak of exchange marketing, only about one in six US adults had invested in, traded, or used crypto, with young men the standout cohort. The new data lands just weeks after Digiday reported that top crypto advertisers had slashed digital and TV budgets as markets fell, meaning FTX and its peers were paying heavily for reach that wasn't converting.

First-order effects

  • FTX and other big-spending exchanges face direct evidence that brand advertising is not expanding their addressable market — the buyer pool was static through the heaviest campaign cycle in the industry's history.
  • Marketing teams at these companies lose their core pitch to investors and boards that awareness spending drives adoption, since penetration didn't budge between September 2021 and July 2022.

Second-order effects

Third-order effects

  • If the pattern holds, US consumer crypto adoption behaves like the technologies Pew tracked plateauing since 2016 — internet, smartphones, social media — saturating an early-adopter base instead of compounding toward majority use.
  • Industry structure tilts toward consolidation around the few platforms that can survive on existing users' trading volume, while regulators gain evidence that fraud losses like the FTC's $1B+ scam tally, not lack of advertising, are the binding constraint on mainstream trust.

The trend: US consumer crypto adoption is settling into an early-saturation plateau that advertising cannot move, making trust and regulation — not marketing budgets — the lever that determines whether the next 84% ever arrive.

Discussion

  • @bartnaylor Bartlett Naylor on x
    Interest in crypto waning; of those who speculated, a plurality said it did worse than expected. -Pew https://www.pewresearch.org/ ...
  • @rjcc Richard Lawler on x
    that's the thing about network marketing. if you're in it, it seems super effective because everyone you know loves it. Everyone else is ignoring it. https://twitter.com/...
  • @pewresearch @pewresearch on x
    Men ages 18 to 29 stand out for saying they have ever invested in, traded or used a cryptocurrency such as bitcoin or ether. About four-in-ten men ages 18 to 29 (42%) have used cryptocurrencies, compared with 17% of women in that age range. https://www.pewresearch.org/ ... https:…
  • @cultexpert Steven Hassan, PhD on x
    Crypto's massive marketing efforts have drawn few new investors. (Remember Bill Gates said, when asked about crypto, that it was based on “the greater fool theory!") https://www.washingtonpost.com/ ...
  • @pewresearch @pewresearch on x
    Among the 16% of Americans who say they have ever invested in, traded or used a cryptocurrency, % who say their investments have done _ overall: • Better than they expected: 15% • About the same as they expected: 31% • Worse than they expected: 46% https://www.pewresearch.org/ ..…
  • @pkwsj Paul Kiernan on x
    Crypto adoption appears to have hit a wall in the US, with the percentage of Americans who have invested remaining flat at 16% from Sept. '21 to July '22. That this happened despite a historic marketing push is kind of stunning. https://www.pewresearch.org/ ...
  • @johngramlich John Gramlich on x
    NEW @pewinternet data on cryptocurrencies and NFTs, including the share of Americans who have heard of them, the share who have personally invested in/bought them, how these patterns vary by demographic group, and more. Young men still stand out on crypto. https://www.pewresearch…
  • @jeremybmerrill Jeremy B. Merrill on x
    Crypto's massive marketing efforts (Super Bowl, anyone?) have drawn basically no *new* investors, Pew research suggests. https://www.washingtonpost.com/ ...
  • @jameswester James Wester on x
    Some interesting data in this @pewresearch poll on crypto. I find the headline a little odd though. What does “worse than expected” mean (i.e. the investments could have gone up, but expectations were astronomical)? Worth digging into. https://www.pewresearch.org/ ...