Cryptocurrency market report predicts more growth in blockchain – Crypto News

The latest “Cryptocurrency Trends – Global Strategic Business Report” [paywall] has been released, projecting significant growth over the next five years in the cryptocurrency and blockchain space. Valued at US$2.1 billion in 2024, the global market for cryptocurrency is forecast to reach US$5 billion in value by 2030, equating to a CAGR of 15.4%.

The nature of common financial transactions has changed with the introduction of secure and decentralised methods of exchanging currency in recent years. Using blockchain technology, cryptocurrencies can provide transparency and lower transaction costs, eliminating the need for intermediaries such as national central banks.

Bitcoin still leads the cryptocurrency market in popularity, although alternatives like Binance Coin, Ethereum, and Solana are diversifying the market. Altcoins have changed how some people and organisations engage with financial systems, evolving to form what the report terms more-accessible economic opportunities. Altcoins in particular are said to offer unique features, including decentralised applications (dApps) and smart contracts.

According to the report, several factors are behind the growth of the cryptocurrency market, one of which is a growing demand for decentralised financial systems offering autonomy, security, and transparency.

Trust in the use of cryptocurrency is also growing due to clearer implementations of blockchain technology. These ensure better protection for transaction records made by individuals and institutions. Mistrust and worries around cryptocurrency volatility have lessened thanks in part to the emergence of stablecoins.

The popularity of digital payments has grown in recent years, particularly since the COVID-19 pandemic, helping cryptocurrencies take their place in the financial landscape, the report claims.

Major companies and investment firms have entered the cryptocurrency market recently, further fuelling growth in the wider market. Adoption by institutions, including venture capital firms, governments, and hedge funds means cryptocurrencies are now viewed increasingly as legitimate.

Technology advances have been additional catalysts, with interoperability solutions and energy-efficient blockchain protocols addressing many of the challenges traditionally associated with the cryptocurrency space, including environmental and scalability concerns.

The report states blockchain use now goes beyond financial transactions and includes the use of technologies like smart contracts, which can use networks such as Ethereum to support more complex functions. For instance, contracts can now execute agreements without the need for intermediaries, cutting time and boosting efficiency in contractual processes.

There has also been a rise in instances of decentralised finance (DeFi), a growing sector that provides a range of services from lending to borrowing, ones that can act independently from conventional banking networks.

The report coverage includes the adoption of non-fungible tokens (NFTs), which, it says, are helping reshape several industries that include entertainment, gaming, and art. The use of NFTs is expanding the scope of blockchain technology beyond just financial transactions, introducing what the report describes as new opportunities for investors and creators.

Scalability issues, like slow transaction speeds and high fees have been at least partly-addressed by technologies like Polygon for Ethereum and the Lightning Network for Bitcoin, examples of so-called Layer-2 solutions. These allow blockchains to handle a larger number of transactions at low cost per transaction.

Eco-friendly cryptocurrencies and blockchain protocols are becoming more popular as the market looks for ways to reduce the environmental impact of work-based cryptocurrency mining processes.

The report details how younger generations desire financial systems that offer security, transparency, and autonomy. The increased interest from investors in digital assets (rather than traditional choices such as publicly-traded stocks) is another contributor to the market’s growth.

Mainstream financial services like Mastercard and Visa have begun to integrate cryptocurrency-linked cards, allowing consumers to use their digital assets alongside fiat currencies in everyday transactions.

Additionally, the report cites an increase in cryptocurrency-based loyalty schemes and rewards, advances in mobile apps, and the more widespread adoption of e-wallets as other key instigators behind cryptocurrency and blockchain’s increased popularity. Access to cryptocurrencies has become simpler, with users no longer needing to be tech-savvy.

With education about and awareness of blockchain technology growing, consumer confidence in cryptocurrencies is expected to grow, the report says.

(Image source: “BMO Digital Banking” by PiggyBank Canada is licensed under CC BY 2.0.)

See also: Sam Altman’s World Network in talks with Visa on cryptocurrency wallet integration

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Tags: Bitcoin Lightning Network, NFTs, research