I think…
Most of the current valuation comes from speculative traders. They own monero because they expect the price to go up, not because they care about the underlying technology or actually want to spend it as a currency.
They likely trust the exchange to do a better job than themselves at keeping their XMR secure, want to avoid the fees associated with withdrawing and depositing, want to be able to respond as quickly as possible to price fluctuations, and/or they might not understand the wallets enough to feel safe withdrawing into one.
Anyone that would keep any crypto anywhere they don’t own the keys except a small amount they are trading with limit calls is a complete idiot. You shouldn’t generally be trading your full bag of anything. And as soon as a buy order goes through move all but the amount you might be willing to take profit on automatically. And there are non-KYC trading platforms supporting limit order activity.
I do not agree most the valuation is from speculative traders when it comes to monero btw. Evidence?
