Cryptocurrency such as Bitcoin are digital assets that uses cryptography and blockchain technology for security purposes. Cryptocurrencies provide various advantages over traditional currencies such as lower transaction fees, ease of access and transparency. With the growing awareness about security and privacy of financial transactions, the adoption of cryptocurrencies is increasing globally.
The global Cryptocurrency Market is estimated to be valued at US$ 37.9 Bn 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:
Blockchain technology forms the backbone of all cryptocurrency transactions by recording them in a public ledger that is distributed across a network of computer systems. The growing adoption of blockchain technology by banks and financial institutions is one of the major factors driving the growth of cryptocurrency market. Many organisations are leveraging blockchain’s ability to facilitate faster, more transparent and secure financial transactions. They are also utilising blockchain capabilities for different applications beyond currency such as supply chain management, digital identity and smart contracts. This wide adoption of the underlying blockchain technology has significantly accelerated the growth of cryptocurrency market over the recent years.
Segment Analysis
The global cryptocurrency market is dominated by cryptocurrencies that can be used for payments and exchanges such as Bitcoin and Ethereum. Bitcoin remains the largest crypto asset with the highest market cap due to its reputation as a relatively stable store of value. Meanwhile, Ethereum has emerged as the most popular platform for developing decentralized applications (DApps) on its Ethereum Virtual Machine, giving it an advantage over other cryptocurrencies in the enterprise and business segment.
Key Takeaways
The global cryptocurrency market is expected to witness high growth over the forecast period driven by increasing adoption from institutional investors and businesses. Institutional interest in cryptocurrencies has grown enormously over the past year with many large investment firms like Goldman Sachs setting up cryptocurrency trading desks. Crypto investment products are also gaining popularity among institutional and high net worth individual investors looking for portfolio diversification. The global Cryptocurrency Market is estimated to be valued at US$ 37.9 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.
Regional analysis: The cryptocurrency market in North America, especially the United States, currently dominates due to early adoption by institutional investors and mainstream fintech companies in the region. However, the Asia Pacific region is emerging as the fastest growing market for cryptocurrencies due to a high concentration of technical talent and support from regional governments trying to promote local cryptocurrency projects. Countries like China, Japan and South Korea have emerged as global crypto hubs.
Key players: Key players operating in the cryptocurrency market include 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) and Ethereum Foundation (Switzerland).
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it