The cryptocurrency market is predicted to grow from $574.3 million in 2017 to $6702.1 million in 2025, at a CAGR of 31.3%, driven by a consolidated landscape and increasingly rapid transaction capabilities, according to a Monday report from Transparency Market Research.
Only a few major players have emerged in the cryptocurrency landscape, the report found, and most are investing toward increasing adoption of cryptocurrency for payments, focusing on creating payment gateways and platforms.
SEE: IT leader’s guide to the blockchain (Tech Pro Research)
Many players are collaborating, merging, and launching joint products to strengthen their market position, the report noted. Some of the major players in the global cryptocurrency market space are Bitmain, Xilinx, NVIDIA, Intel, Ripple Labs, Advanced Micro Devices, Ethereum Foundation, Coinbase, Bitfury Group, and BitGo, according to the report.
Europe will likely account for the largest cryptocurrency market share between now and 2025, due to the numerous cryptocurrency mining pools in the region, the report found.
The cryptocurrency market’s rapid expansion is primarily due to ongoing change in the digital payment space, the report found.
“Cryptocurrency has helped overcome major restraint in traditional currency system such as faster cross border remittance and easy interbank transaction,” according to a press release. “Consumers across the globe are adopting cryptocurrency because it help them transact easily and it does not require any intermediary process and truncation fees. Thus helping streamline international payment process.”
Financial institutions are also exploring cryptocurrency, as it can help save costs, improve security, protect from fraud, and speed up international money transfers, the report noted.
However, uncertainty over the credibility of cryptocurrency among consumers may slow its growth, the report found. A lack of knowledge and technical understanding about crypto has led several developing countries to ban its use in trade, restricting investments. Many consumers also don’t yet understand the potential benefits of cryptocurrency or its technological ecosystem, and have failed to widely adopt it.
Despite this, increasing interest from entrepreneurs, startups, SMBs, and enterprises will likely help the cryptocurrency market attract increased venture funding in the future, making it more likely that the currency will become widespread, the report noted.
To learn more about common cryptocurrency terms, check out this TechRepublic cryptocurrency mini-glossary.
The big takeaways for tech leaders:
- The cryptocurrency market is predicted to grow from $574.3 million in 2017 to $6702.1 million in 2025, at a CAGR of 31.3%. — Transparency Market Research, 2019
- Growth in the crypto market will be driven by a consolidated landscape and increasingly rapid transaction capabilities. — Transparency Market Research, 2019