Cryptocurrency Market - Growth, Trends, and Forecasts (2023 - 2028)

Cryptocurrency Market - Growth, Trends, and Forecasts (2023 - 2028)

Cryptocurrency is the new age financial innovation designed not only to become an alternative to cash but also to support the existing systems. The market has achieved XX USD billion market capitalization and is expected to register a CAGR of 60% over the forecast period.

Cryptocurrencies which are designed to use for peer-to-peer transactions without being liable to any government or a central bank are the latest financial innovations explored not only for the reasons of their being but also for potential risks and opportunities in the financial industry. There are thousands of cryptocurrencies with various design goals. These design goals are to provide a digital currency alternative to cash (Bitcoin, Monero, and Bitcoin cash), to support a payment system at low cost (Ripple, Particl, and Utility Settlement Coin), to support peer-to-peer trading activity by creating tokens (RMG and Maecenas), to facilitate secure access to a good or service in peer-to-peer trading (Golem, Filecoin) and to support underlying platform or protocol ( Ether and NEO). These design goals mentioned won’t be exhaustive as new cryptocurrencies are being created every week. Blockchain is the underlying technology for most cryptocurrencies.

The cryptocurrency market is segmented based on the market capitalization of a large number of cryptocurrencies. Cryptocurrencies overlap with key areas of the monetary and financial system. Given their rapid growth, complexity, high volatility, and potentiality for facilitating illicit activities, regulators and policymakers across the world are bothered about their inclusion into the existing system and revising the existing systems to fit them, if included.

With the evolving nature of this market with new cryptocurrencies created every week, it is difficult to know how big the cryptocurrency market is. A wide scope of market exchanges for cryptocurrency trading, spread across the globe because of their privacy protection features as well as rapid growth, extreme price volatility, and market illiquidity add to the complexity of the cryptocurrency market. The market capitalization of cryptocurrencies over the years shows how high the price volatility of the market is.

The estimated cryptocurrency market capitalization, for example, during January 2022, varied between 400 billion USD and 800 billion USD which was 566 billion USD at the beginning of the year 2022 and finally settled at 128 billion USD by the end of the year 2022. In terms of transaction volumes, bitcoin alone had the highest number of 200,000 average daily transactions.

Enterprise adoption of blockchain technology has quietly reached a tipping point across multiple use cases. Companies that have recognized value from their initial pilot projects are now moving towards turning these projects into production. Specifically, there is still uncertainty about this technology in the areas of regulations and governance, but the adoption of blockchain for financial services, identity, trade, and other markets is increasing.

Global blockchain spending will be led by the banking industry followed by discrete manufacturing and process manufacturing with a combined market share of about 50% of overall spending. In the banking industry, the spending will be driven by two of the largest use cases – cross-border payments & settlements and trade finance & post-trade settlements.

Spending on blockchain solutions will be the highest in United States followed by Western Europe and China. All the regions shown in the infographics are expected to see phenomenal growth in the coming years.

The report includes different segments like coin product developers, mining services, cryptocurrency exchanges, wallet companies, etc along with a note on recent mergers and acquisitions that shaped the ecosystem.

• The market estimate (ME) sheet in Excel format
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