It’s primarily to do with making data human readable in a practical way. Hex makes it fairly easy to know the underlying binary states, as it’s easy to work with sums of 1, 2, 4, and 8. Base-32 would just be more complex to understand.
Also, many processors work on 8, 16, 32, or 64 bit values, so 4-bit nibbles divides into those well for the purposes of presentation
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