MoreMarkets’ 2025 Crypto Yield Retail Consumer Report shows retail investors favor centralized exchanges and prioritize safety over high returns.
Nearly half of U.S. retail crypto holders have never earned yield on their assets, according to MoreMarkets’ 2025 Crypto Yield Retail Consumer Report.
The report, which surveyed U.S. retail consumers and analyzed on-chain data, estimates that roughly 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. That equates to around 97% of yield earners preferring to earn on CEXs rather than decentralized alternatives.
Of those not earning yield at all, 68% cited concerns about liquidity, 45% cited security risks, and 28% said they didn’t understand how to participate in DeFi.
The report suggests that most retail investors stick with CEXs because they are cautious, even though DeFi platforms can offer higher returns.
For many users, safety (40.6%) and the ability to withdraw funds easily (46.5%) matter more than higher yields (33.7%), highlighting that trust and reliability are key to getting people to participate in DeFi, the report noted.
“We all got into crypto for the same reason: financial freedom,” said Altan Tutar, CEO and co-founder of MoreMarkets, said. “Too often, though, crypto forgets about the freedom part, measuring its success with on-chain metrics like TVL and transaction volumes. These numbers are important, but they do not capture the human side of adoption.”
What Users Prefer
The report also found that retail investors are most attracted to crypto yield products that offer flexible withdrawals (46.53%) and guaranteed security or insurance for staked funds (40.6%).
Other popular features include higher yields than competitors (33.7%) and regulatory protection or FDIC-like coverage (32.7%). Less important incentives include auto-compounding (5.9%), rewards in the form of gift cards or travel perks (7.92%), and personalized APY boosts (4.9%).
The report explained that retail crypto yield in 2025 exists in two separate worlds: a large, centralized ecosystem where tens of millions earn through custodial platforms, and a much smaller decentralized space mostly used by crypto-native users.
“Retail investors remain cautious. They keep assets liquid, only chase yield when it significantly outpaces traditional finance, and prioritize safety over returns,” the report reads.
It added that most investors won’t participate unless yields exceed 6%. “Retail users hesitate not because they dislike returns, but because they doubt whether their assets will remain safe and accessible,” the report reads.
Going forward, the study believes that the platforms most likely to succeed are those that provide simple, easy-to-use interfaces, strong security, and reliable risk-adjusted returns.