TL;DR
- Nearly half of U.S. retail crypto investors have never earned yield, prioritizing safety and ease of withdrawal.
- Among those generating returns, 97% use centralized exchanges like Binance and Coinbase, while DeFi attracts only 500,000‑700,000 users.
- Adoption depends on yields exceeding 6%; retail investors value simple interfaces, strong security, and reliable liquidity to participate.
Nearly half of U.S. retail cryptocurrency investors have never earned yield on their assets, according to MoreMarkets’ 2025 Crypto Yield Retail Consumer Report.
The study combines surveys of retail consumers with on-chain data and estimates that 20‑36 million users earn yield through centralized exchanges (CEXs) like Binance and Coinbase, while only 500,000‑700,000 use decentralized finance (DeFi) protocols. This means that around 97% of yield earners prefer centralized platforms over decentralized alternatives.
Investor Preferences
The report highlights that investors not earning yield mainly cite concerns about liquidity (68%), security risks (45%), and lack of understanding of how to use DeFi tools (28%). Caution remains a defining trait among retail users, who prioritize fund security (40.6%) and withdrawal ease (46.5%) over higher yields (33.7%). This shows that trust and accessibility are key factors for users to consider engaging with DeFi products.
Among the products most attractive to retail investors are those that offer flexible withdrawals, insurance or protection for staked funds, yields higher than competitors, and some form of regulatory coverage. Secondary incentives include auto-compounding, rewards in the form of gift cards or travel perks, and personalized APY boosts, though their impact is limited.
CeFi vs. DeFi
MoreMarkets identifies the retail yield market as divided into two worlds: a centralized one, where tens of millions earn through custodial platforms, and a much smaller decentralized space mainly used by crypto-native users. Retail adoption depends on yields exceeding 6%, as most users avoid participation due to doubts about security and asset accessibility, not a lack of interest in returns.
Altan Tutar, CEO and co-founder of MoreMarkets, stated, “We all got into crypto for financial freedom, but too often the human side of adoption is overlooked.” The report concludes that the platforms most likely to succeed will be those combining simple interfaces, robust security, and reliable risk-adjusted returns, ensuring retail investors can generate gains without compromising trust or liquidity
