Cryptocurrency Market: Overview
The global cryptocurrency market size was worth USD 4.40 billion in 2021 and is estimated to grow to USD 12.10 billion by 2030, with a CAGR of approximately 11.90 percent over the forecast years.
The term “virtual currency” refers to cryptocurrency. It is a type of money that only exists in digital form and doesn’t have a central issuing or governing body above it. The transactions are verified using blockchain technology. As a peer-to-peer system, it allows users to send and receive payments from anywhere in the world without depending on banks to validate the transactions. The increasing demand for remittances in developing countries, the increase in demand for operational efficiency and transparency in financial payment systems, and the enhancement of data security are the key forces behind the growth of the global cryptocurrency market.
Furthermore, using cutting-edge blockchain distributed technology protocols, different parties can transfer payments across the organization, perhaps replacing the need for some organizational solutions. The eradication of environmental crimes and other offenses is made possible by such technology’s increased supply chain transparency. As a result, more people will adopt cryptocurrencies. Additionally, there may be lucrative market expansion chances during the projected period due to the growing bank and other financial institutions’ interest in cryptocurrencies and unrealized potential in emerging economies. High implementation costs and low public awareness of cryptocurrencies in emerging nations are other factors impeding the growth of the cryptocurrency industry.
The COVID-19 pandemic has had a detrimental impact on the cryptocurrency market as a result of the major decline in stability, rise in irregularity, and increase in volatility of cryptocurrencies. During a crisis in global health, this is anticipated to lower demand for cryptocurrencies. Demand for cryptocurrencies is substantially lower during a pandemic due to the lack of regularity that bitcoin exhibits compared to global equity markets.
Cryptocurrency Market Drivers:
The cryptocurrency market is predicted to grow significantly in the coming years due to enhanced data independence and transparency across payments in banks, financial services, insurance, and many other business sectors. Cryptocurrency use in the banking industry has various benefits, including transparent payment sending and receipts and the safe storing of customer-specific data for later use. For instance, in October 2021, PayPal, an American business, participated in online payment systems. It announced that consumers could purchase and sell Bitcoin and other virtual currencies using their PayPal accounts. Similarly, in February 2021, Mastercard also introduced the first CBDC-linked Card in the world in collaboration with Island Pay. Thus, the market’s expansion is fueled by several similar advancements among the key competitors.
Cryptocurrency Market: Restraints
Since virtual currencies are an unregulated, unmanageable, and decentralized exchange platform, several regulatory organizations are concerned about the rising use of these currencies for illicit activities by criminals. The digital currency has been used by criminals in several illegal activities, including tax evasion, money laundering, and financing terrorism. In July 2019, Treasury Secretary Steven Mnuchin expressed his worries about money launderers and terrorist financiers misusing Facebook, Inc.’s patented Libra digital currency. Additionally, the adoption of cryptocurrencies has been constrained by growing security worries and cyberattacks that resulted in the loss of investment capital. One of the main obstacles to the industry’s expansion is the misuse of digital currency and associated security problems.
Cryptocurrency Market: Segmentation
The global cryptocurrency market has been segmented into the offering, process, type, and end user.
Based on offering, the market is segmented into hardware (ASIC, GPU, FPGA & others and software (mining platform, exchange & coin wallet). The hardware category dominated the market in 2021 because there is an increasing need to enhance the functionality of the software and the efficiency of financial payment devices. The Bitmain Antminer S9i, Halong Mining DragonMint T1, Pangolin Whatsminer M3X, and Avalon6 are a few hardware for cryptocurrency exchange and mining. Most of the share is projected to come from ASIC mining hardware, which works well and has a high hash rate while mining a particular coin. On the other hand, the software category is anticipated to grow at a significant rate over the forecast period since it facilitates managing the massive volume of data being produced for enlightening discoveries and more informed decisions. A single interface used by exchange software called a “trading engine” links offers and exchanges with derivatives of digital currencies. Software wallets, also known as digital wallets, are more common due to their higher level of security. Based on the user’s authority over the private key protection feature, digital wallets are once more categorized as self-hosted or custodial wallets.
Based on type, the market is segmented into bitcoin (BTC), Ethereum (ETH), tether (USDT), Binance coin (BNB), Cardano (ADA), ripple (XRP), and others. In 2021, the bitcoin (BTC) category dominated the global market. As a digital currency, Bitcoin has experienced significant commercial traction. According to a report by Deutsche Bank AG published in 2017, bitcoin is one of the most widely used digital currencies and will continue to dominate the market for some time. Ether, which can be used for investing, creating smart contracts, and creating decentralized applications, is another popular virtual money on the market. However, the ripple (XRP) category is anticipated to grow fastest over the forecast period as the ripple network has relationships between debtors and creditors and publicly accessible account balances.
Cryptocurrency Market: Regional Landscape
The Asia Pacific dominated the cryptocurrency market in 2021.
The market has evolved and experienced some healthy competition due to the rise in bitcoin exchanges in the Asia Pacific. To promote transparency and fight fraud in the country’s financial sector, Chinese institutions are hiring blockchain experts. These elements are causing the local bitcoin market to expand. A significant expansion of the Asia Pacific business is also anticipated as a result of several technology advancements and Japan’s and Taiwan’s approval of virtual currency for use on multiple platforms. Strategic collaborations and alliances between significant corporations help the Asia Pacific market. For instance, in January 2020, Z Corporation, Inc. and TaoTao, Inc. partnered with the financial service agency to advance the cryptocurrency market by reiterating regulatory compliance in the Japanese market.
Cryptocurrency Market: Competitive Landscape
Some of the main competitors dominating the global cryptocurrency market include– Advanced Micro Devices Inc (US), BitFury Group Limited (Netherlands), BTL Group Ltd (England), Coincheck Inc (Japan), Intel Corporation (US), Ledger SAS (France), NVIDIA Corporation (US), Ripple (US), Xilinx Inc (US), Xapo Holdings Limited. (Hong Kong), Ethereum Foundation (Switzerland), Coinbase (US), BitGo (US), Binance Holdings (China), Canaan Creative (China), Bitstamp (Luxemburg), and Ifinex (Hong Kong)
Cryptocurrency Market Recent Developments
- March 2021: Directly processing cryptocurrency payments on the Ethereum Blockchain is something that Visa Inc. plans to advertise as a new payment service. Through this significant endeavor, the business intends to make the financial industry the first to accept cryptocurrency.
- January 2020: com acquired WazirX, an Indian bitcoin exchange with headquarters in Mumbai. With this acquisition, Binance.com is putting a lot of attention on expanding its Indian clientele. It will be simpler to trade Binance.com’s digital currency with purchases of Tether or USDT due to the Fiat Gateway platform, which Binance.com has licensed, along with WazirX’s peer-to-peer (P2P) engine.
Global Cryptocurrency Market is segmented as follows:
Cryptocurrency Market by Offering Outlook
- Mining Platform
- Coin Wallet
Cryptocurrency Market by Process Outlook
Cryptocurrency Market by Type Outlook
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Binance Coin (BNB)
- Cardano (ADA)
- Ripple (XRP)
Cryptocurrency Market by End User Outlook
- Trading Retail and E-commerce
Cryptocurrency Market by Region Outlook
- North America
- United States
- United Kingdom
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
|Cryptocurrency Market Report Scope
|Market Size Value in 2022
||USD 4.40 billion
|Revenue Forecast in 2030
||USD 12.10 billion
||CAGR of 11.90 % from 2022 to 2030
|Base Year for Estimation
||2017 – 2021
||2022 – 2030
||Revenue in USD million and CAGR from 2022 to 2030
||Revenue forecast, company ranking, Trends
competitive landscape, and growth factors
||Offering, Process, Type, End User, and Region
||North America; Europe; Asia Pacific; Latin America; Middle East & Africa
||U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others
|Key Companies Profiled
||Advanced Micro Devices Inc., BitFury Group Limited, BTL Group Ltd., Coincheck Inc., Antier Solutions, Intel Corporation, Ledger SAS, NVIDIA Corporation, Ripple, Xilinx Inc., and Xapo Holdings Limited.