The global cryptocurrency market size is expected to grow by USD 1.47 Billion between 2022 to 2026, at a CAGR of 15.75% during the forecast period, according to a research report by Technavio on October 24, 2022.
Bitcoin Investments to Generate Most Revenue
Technavio, a market research firm, has just published a report on the cryptocurrency market, its potential, and its growth index. According to the report, the cryptocurrency market is set to undergo significant growth during the forecast period, with Bitcoin-related Investments as its most important contributor. The report showed that the market is expected to grow by $1.47 Billion, constituting a compound annual growth rate (CAGR) of 15.75% from 2022 to 2026.
Despite the emergence of the crypto winter in 2022, institutions and individuals have invested in Bitcoin and other bitcoin-related products like Bitcoin ETFs and Bitcoin Funds. In addition, corporations like Michael Saylor’s MicroStrategy have increased their Bitcoin holdings, and companies like Tesla have expanded their financial portfolio to accommodate Bitcoin Investments.
Adoption of Digital Assets, A Major Driving Force
Technavio identified rising digital asset investments as the cryptocurrency market’s primary driving force. The report stated:
“Cryptocurrencies are becoming more popular in the global market for digital assets as a result of these characteristics. As many people interact with digital assets every day, from investing in crypto as a digital asset to digitizing their existing investment assets, digital assets have become integrated into the existing network of the traditional financial market.
Therefore, the rising investment in digital assets is expected to boost the growth of the market during the forecast period.”
A digital asset is anything stored digitally and uniquely identifiable that organizations can use to realize value. Digital assets facilitate the seamless transfer of value without tedious paperwork. They are becoming a significant product in payment processing.
Potential Challenges, North America Leads
According to the report, the volatility of crypto prices represents the biggest challenge to the growth of the crypto market. Due to their digital nature, smaller market size, and lack of regulatory framework for trading, cryptocurrency markets are highly speculative. Hence, making them more volatile than most other assets.
“The price of cryptocurrency basically depends on how buyers perceive its value, which leads to fluctuations. Thus, fluctuating prices may hinder market growth during the forecast period.”
The report stated.
Technavio notes that the North American region is the most significant contributor to the crypto sector’s growth, citing the region’s acceptance of blockchain-related investments as a big factor.
“47% of the market’s growth will originate from North America during the forecast period. The US is the key market for the cryptocurrency market in North America. The increase in blockchain investments will facilitate the cryptocurrency market’s growth in North America over the forecast period.”
Said the report.
It will be recalled that Technavio recently published a report on the emergence of the ASIC Miner in the crypto mining sector. The research firm predicted the ASIC Miner market to increase by more than $125 million with a CAGR of 6.74% from 2021 to 2026.
Source: https://crypto.news/crypto-market-size-to-grow-by-usd-1-47-billion-in-four-years/