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The cryptocurrency market has expanded rapidly in recent years as digital currencies provide an alternative means of payment that is independent of centralized authorities and intermediaries. Cryptocurrencies leverage blockchain technology to facilitate secure peer-to-peer transactions without the need for banks or other centralized intermediaries. Popular cryptocurrencies such as Bitcoin and Ethereum allow for fast international payments at relatively low cost as compared to traditional remittance services.
The global cryptocurrency market is estimated to be valued at US$ 37.9 billion in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the primary trends driving growth in the cryptocurrency market is the increasing adoption among institutional investors. Large investment firms and hedge funds have started allocating portions of their portfolios to digital currencies in recent years due to their potential for high returns. According to market research, institutional investments in cryptocurrencies surpassed $10 billion in 2021 and this trend is expected to accelerate further. Growing institutional interest in cryptocurrencies is helping to increase market legitimacy and push valuations higher. Additionally, increasing merchant acceptance of cryptocurrencies for payments and growing retail investments are other major drivers of cryptocurrency market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: Low. Significant startup costs and expertise required to compete with established players.
Bargaining power of buyers: High. Buyers have many cryptocurrency options to choose from.
Bargaining power of suppliers: Moderate. A few dominant mining equipment suppliers influence supply.
Threat of new substitutes: High. Constant innovation leads to new cryptocurrencies competing for users.
Competitive rivalry: High. Intense competition between cryptocurrencies to attract users and trading volume.
Key Takeaways
The global cryptocurrency market is expected to witness high growth. Being a relatively new market, cryptocurrency adoption is growing exponentially. Significant venture capital investments are being made to develop the underlying blockchain technology and its applications.
North America currently dominates the global cryptocurrency market due to high adoption rates and presence of key players and financial institutions supporting digital currency innovation. Asia Pacific is expected to grow at the fastest pace in the coming years led by China and countries aiming to become global blockchain technology hubs.
Key players operating in the cryptocurrency market are Bitmain Technologies Ltd. (Beijing, China). The market is characterized by consolidation as companies seek to gain higher market share through mergers and acquisitions. Strategic partnerships between cryptocurrency exchanges, payment companies, and financial institutions have also increased in recent times.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
