The cryptocurrency market comprises digital currencies like Bitcoin that use cryptography for securing financial transactions. Key advantages of cryptocurrencies include decentralized control, transparency, and reduced transaction costs. There is a growing demand for cryptocurrencies as a means of payment and as a new investment asset class. The global cryptocurrency market size 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 of 2023 to 2030.
Key Takeaways
Key players operating in the cryptocurrency market are Bitmain Technologies Ltd. (Beijing, China). Key players focus on product innovation and expansion strategies to gain market share. There are lucrative growth opportunities in the institutional investment segment as major financial institutions are showing increased interest in cryptocurrencies. Cryptocurrency exchanges are looking to tap international markets through strategic partnerships and acquisitions to accelerate global expansion.
Market Drivers and Restraints
Rising investment interest from both retail and institutional investors is a major growth driver for the cryptocurrency market. Easy access to cryptocurrencies through online trading platforms and mobile apps is spurring their adoption. However, volatility in cryptocurrency prices and lack of recognized valuation standards pose challenges for widespread acceptance. Regulatory uncertainties and security issues associated with cryptocurrency exchanges also act as barriers to market growth.
Segment Analysis
The cryptocurrency market can be segmented by type into Bitcoin, Ethereum, Tether, and others. Bitcoin dominates the market currently with a 45% share owing to its first mover advantage and robust brand recognition as the first cryptocurrency. Ethereum follows with a 20% share on account of its utility in running smart contracts and powering decentralized applications.
Global Analysis
Geographically, North America holds the largest share of over 35% in the global cryptocurrency market and is expected to exhibit similar dominance in the forecast period. Rapid technological adoption and presence of major players in the US and Canada are driving growth. Asia Pacific follows with a share of close to 30% led by China, Japan and South Korea. The region is witnessing fast growth due to expanding base of digital payments, investments and trades. Europe holds the third largest share with high cryptocurrency usage in UK, Germany and other western nations. However, the fastest growth is expected from Latin American countries like Brazil, Argentina and Venezuela where cryptocurrency provides an alternative to inflation-stricken fiat currencies. Overall, adoption of blockchain technology and cryptocurrencies are increasingly becoming mainstream around the world.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it