DUBLIN –

The global cryptocurrency market accounted for US$ 2,040.5 million in 2020 and is anticipated to grow at a CAGR of 7.2% throughout the forecast period from 2022 to 2030.

Currently, various types of cryptocurrencies are present in the market, including Bitcoin, Ethereum, Bitcoin Cash, and Ripple, among others. Cryptocurrencies use decentralized networks based on blockchain technology. A combination of factors, including high remittances in developing nations, the transparency of distributed ledger technology, high costs of cross-border remittance, and growth in venture capital investment, are proliferating the growth of the cryptocurrency market.

The cryptosphere has become more complicated in recent years following scams such as Silk Road and Mt. Gox, which affected cryptocurrency prices. For example, according to Bloomberg, more than 50% of global digital asset exchanges are based in the Asia Pacific region, accounting for approximately 43 of the 90 exchanges in existence, followed by Europe, with 24% of exchanges, and North America with 15% of all exchanges.

Additionally, the increasing acceptance of digital currency by various industries, fluctuations in monetary regulations, and significant opportunities in developed and emerging markets are bolstering the growth of the cryptocurrency market globally. For instance, according to a filing, the US Patent and Trademark Office, the retail giant Walmart applied for a patent to use a digital coin integrated with fiat currency, which would allow for faster and cheaper transactions.

Apart from this, benefits offered by cryptocurrency, such as low ownership costs, safe and faster transactions, are factors that are further boosting market growth across the globe.

However, the uncertain regulatory status, lack of awareness and technical understanding of cryptocurrency, coupled with concerns regarding security, control, and privacy, are factors hindering the growth of the market.

Trading segment dominates the global cryptocurrency market

In 2021, trading segment dominated the cryptocurrency market and accounted for a share of more than 40.0% of the total revenue generated globally. This can be associated with rising business activities across different industrial verticals and organizations are showing interest in cryptocurrency for trading. Various companies use cryptocurrencies to transfer funds directly between two parties, as it eliminates the requirement of third parties such as banks or credit card companies.

For instance, Microsoft Corporation allows the use of bitcoin to top up the Microsoft account. Wikipedia is also one such company which accepts donations in bitcoin through BitPay. Using these digital currencies, the use of public keys and private keys further secures the real-time transfers. This, in turn, is bolstering the demand of the market.

Asia Pacific region dominates the global cryptocurrency market

Asia Pacific region dominated the global cryptocurrency market with a market share of more than 50% in the year 2021. This can be associated with the crypto-friendly approach, relative affordability of electricity, and exchange activity in the region especially in countries such as China, Hong Kong, Japan, and South Korea among others. For instance, South Korea has been trading digital goods related to gaming since past two decades. This, in turn, is proliferating the cryptocurrency market growth in the region.

List of Companies

  • Bitmain Technologies Ltd.
  • NVIDIA Corporation
  • Advanced Micro Devices, Inc.
  • Xilinx Inc.
  • Bitfury Group Limited
  • Intel Corporation
  • Ripple
  • Ethereum Foundation
  • Coinbase
  • BitGo
  • Binance
  • Canaan Creative Co., Ltd
  • Zhejiang Ebang Communication Co. Ltd.

Key Industry Developments:

  • In May 2020, Ripple, the US blockchain firm behind the XRP cryptocurrency announced partnership agreement with Kuwait Financial House to provide cross-border instant payment. Further, in 2021, the company started operating an instant cross-border remittance service through Ripple’s blockchain.
  • In February 2020, Bitmain has announced the launch of two upcoming miners Antiminer S19 and Antiminer S19 Pro, which will boast a hash rate of 95 terahashes per second and the pro model will offer 110 terahashes per second.

Market Segmentation
Component

  • Hardware
  • Asic
  • Gpu
  • FPGA
  • Wallet
  • Software
  • Mining Platform
  • Coin Wallet
  • Exchange

Applications

  • Trading
  • Remittance
  • Payment

 Type

  • Bitcoin
  • Ethereum
  • Bitcoin Cash
  • Ripple
  • Dashcoin
  • Litecoin
  • Others

Source: Research and Markets