Cryptocurrency is a digital medium of exchange that uses strong cryptography for security and control of spending and generation of units of currency. It allows for decentralized mechanism without the intervention of central authorities. Cryptocurrencies such as Bitcoin, Ethereum are used for transaction of payments and investments worldwide. They offer benefits such as reduced transaction fees, real time payments, transparency and seamless cross-border transactions. The global cryptocurrency market is estimated to be valued at USD 37.09 billion in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increased adoption of cryptocurrency for payment across industries is one of the key trends driving the cryptocurrency market growth. Cryptocurrency payment solutions allow merchants to accept digital currencies from customers and also offer low transaction fees compared to credit cards. Major companies have started accepting cryptocurrency as a mode of payment which has increased its usage for transactions. For instance, Microsoft accepts bitcoin payments for Xbox games, apps and other digital content on its online store. In addition, cryptocurrency payment processors allow merchants to convert crypto payments into fiat currency instantly which mitigates volatility risks and drive increased merchant acceptance. The growing merchant acceptance is expected to boost cryptocurrency adoption for payments applications over the forecast period.
Segment Analysis
The cryptocurrency market is dominated by Bitcoin segment due to its early entry and higher brand recognition. Although Bitcoin accounts for nearly 60% of the total cryptocurrency market, its market share is steadily declining as new altcoins and tokens enter the market each year. The Ethereum segment is the second largest and growing rapidly due to its support of decentralized applications and smart contracts. Other promising segments include Ripple, Litecoin, and Monero.
Key Takeaways
The global cryptocurrency market is expected to witness high growth over the forecast period.
North America currently dominates the market due to high acceptance of digital currencies among both individual and institutional investors in the US and Canada. However, Asia Pacific is emerging as the fastest growing region with countries like China, Japan and South Korea ramping up investments and infrastructure development in the blockchain industry.
Key players operating in the cryptocurrency market are Bitmain Technologies Ltd. (Beijing, China), NVIDIA Corporation (California, United States), Xilinx (California, United States), Intel Corporation (California, United States), Advanced Micro Devices, Inc. (California, United States), Ripple Labs Inc. (California, United States), Bitfury Group Limited (Amsterdam, Netherlands). Bitmain Technologies Ltd. is currently the global leader in cryptocurrency mining hardware production.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
