The cryptocurrency market comprises digital or virtual currencies that make use of cryptography for security and validation of transactions. Cryptocurrencies such as Bitcoin, Ethereum, among others have witnessed rising popularity and are increasingly being accepted as a mode of payment by major global retailers and companies. The global cryptocurrency market is estimated to be valued at US$ 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:
Growing Popularity in Investing and Trading: One of the primary drivers supplementing the growth of the cryptocurrency market is the growing adoption of cryptocurrencies such as Bitcoin as an investment instrument and for trading purposes. Cryptocurrencies are increasingly gaining traction as a potential investment class due to their limited supply and perceived potential for high returns. Rising interest from institutional investors is further supporting the adoption of cryptocurrencies for investment and speculative trading. This growing popularity, especially among millennials, for investment and trading of cryptocurrencies is expected to propel market growth over the forecast period.
SWOT Analysis
Strength: Cryptocurrency provides benefits of decentralization, security from inflation, and borderless transactions. It enables fast and cheap transactions.
Weakness: Volatility in cryptocurrency prices poses risks. There are also concerns around the energy consumption of cryptocurrencies like Bitcoin.
Opportunity: Growing institutional investments in cryptocurrencies. Increasing merchant acceptance of cryptocurrency payments is also an opportunity.
Threats: Strict regulations around cryptocurrency in some jurisdictions pose a threat. Cyber threats like hacking and theft also impact the market.
Key Takeaways
The global cryptocurrency market is expected to witness high growth over the forecast period of 2023 to 2030. The Asia Pacific region currently dominates the market and is expected to continue its dominance over the forecast period. China and Japan have emerged as major countries driving the growth of cryptocurrency adoption in the region.
Regional analysis: The Asia Pacific region is currently the fastest growing as well as the dominating region in the global cryptocurrency market. Countries like China and Japan have emerged as leaders in cryptocurrency adoption and trading in the region. Favorable regulations and active trading volumes contribute to the growth of the APAC cryptocurrency market.
Key players operating in the cryptocurrency market are Bitmain Technologies Ltd. (Beijing, China). Bitmain is a major player in cryptocurrency mining equipment. The company designs and produces cryptocurrency mining hardware and software for Bitcoin and other cryptocurrencies. It had a large share of the Bitcoin mining hardware market in the past.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
