February 25, 2024

Cryptocurrency Market is expected to driven by the growth of blockchain technology

 

The rapid expansion of blockchain technology has led to the growth of cryptocurrencies globally. Cryptocurrencies offer a decentralized digital currency that acts as a medium of exchange using cryptography to securely process transactions, control the creation of new coins, and verify transfers. Cryptocurrencies such as Bitcoins can be used to book hotels on Expedia, shop for furniture on Overstock, and buy Tesla cars. The global cryptocurrency market allows for fast international money transfers at low transaction fees. The growing acceptability of cryptocurrencies by retailers, merchants, other businesses is boosting the market.

The global Cryptocurrency Market is estimated to be valued at US$ 37.9 Bn in 2023 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:
One of the major trends gaining popularity in the cryptocurrency market is central bank digital currencies. Growing popularity of private cryptocurrencies and their volatile nature is prompting central banks across the globe to explore the idea of launching their own digital currencies. China was one of the first movers to launch its pilot central bank digital currency called Digital Currency Electronic Payment in 2020. Since then, central banks of major economies like the United Kingdom, European Union, United States, India are actively working towards developing central bank digital currencies. Central bank digital currencies are expected to provide the benefits of digital currencies but with increased regulation which can help accelerate the worldwide adoption of cryptocurrencies.

Porter’s Analysis
Threat of new entrants: The cryptocurrency market has high barriers to entry due to the substantial initial investment required to setup infrastructure for mining and trading cryptocurrencies.
Bargaining power of buyers: Individual buyers have low bargaining power in the cryptocurrency market due to fragmented demand and availability of substitutes. However, large institutional buyers have moderate bargaining power.
Bargaining power of suppliers: Cryptocurrency miners have moderate bargaining power due to availability of substitutes and differentiation in mining equipment and pools.
Threat of new substitutes: The threat of new substitutes is high as new cryptocurrencies with unique features are regularly developed and also existing cryptocurrencies are upgraded through hard forks.
Competitive rivalry: The competition in the cryptocurrency market is high owing to fragmented market with presence of hundreds of cryptocurrencies and constant innovation.

Key Takeaways
The global cryptocurrency market is expected to witness high growth over the forecast period of 2023 to 2030. The market size for cryptocurrency was valued at US$ 37.9 Bn in 2024 and is anticipated to grow substantially.

Regional analysis: North America dominated the global cryptocurrency market in 2024 owing to strong institutional investment and acceptance of cryptocurrencies as legal tender in some regions like El Salvador. However, Asia Pacific is expected to be the fastest growing market led by countries like China, Japan and South Korea due to increased adoption among retail and institutional investors alike.

Key players: Key players operating in the cryptocurrency market are Bitmain Technologies Ltd. (Beijing, China), NVIDIA Corporation (California, US), Advanced Micro Devices, Inc. (California, US), RIOT Blockchain, Inc. (Colorado, US), and Bitfury Group Limited (Amsterdam, Netherlands). The players are focusing on investments in mining infrastructure and expanding their global footprint through strategic partnerships.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it