Crypto Currency Market Size & Share | Industry Report 2024-2031 (2024)

Cryptocurrency Market size was valued at USD 4.06 Billion in 2022 and is poised to grow from USD 4.57 Billion in 2023 to USD 13.18 Billion by 2031, growing at a CAGR of 12.5% during the forecast period (2024-2031).

Cryptocurrency has versatility in facilitating purchases of goods and services, distinct from conventional currencies, contributes significantly to its practicality, amplifying the global demand and adoption of cryptocurrencies. The surge in digital currency usage, particularly in recent years, has captivated the interest of numerous young investors seeking to hold these assets for potentially lucrative returns. This heightened interest has notably intensified the demand for bitcoin, propelling its value significantly. The distributed ledger technology is used by cryptocurrencies such as blockchain to validate transactions. So, the increasing adoption of this technology is surging the market growth.

The limited supply of bitcoin juxtaposed with an unrestrained demand dynamic has been a pivotal driver behind the substantial growth witnessed in the global cryptocurrency market, signaling a paradigm shift in investment preferences and financial transactions worldwide. The developments or advancements in the AI but also impacting the cryptocurrency market. There is seen rising focus on the advance cryptocurrency AI based platforms. For instance, a few years back researchers at Los Alamos National Laboratory developed an artificial intelligence platform to identify those cryptocurrency miners who use research computers for cryptocurrency mining. Furthermore, the rise in the decentralized finance adoption in cryptocurrency drives the attention of the investors which are continuously investing in the market. The businesses accept cryptocurrency as an official payment method which further propels the expansion of the market. Tesla and MasterCard Inc. have also adopted cryptocurrency which is boosting the market growth. Governments are also taking steps to regulate cryptocurrencies.

Based on SkyQuest analysis, the Indian government has announced 30% tax on income generated through cryptocurrencies. On the contrary, the major restraint in this market's growth is the lack of regulations worldwide. Despite that, the government is making continuous efforts to regularize the cryptocurrency market which is leading towards market growth.

Market Snapshot - 2024-2031

The global crypto currency market is segmented based on offering, process, type, end use, and region. Based on offering, the market is segmented into hardware (central processing unit, graphics processing unit, application-specific integrated circuit, field programmable gate array), software (mining software, exchange software, wallet, payment, others). Based on process, the market is segmented into mining (solo, pool, cloud), transaction (exchange, wallet). Based on type, the market is segmented into bitcoin, bitcoin cash, ethereum, litecoin, ripple, and others. Based on end use, the market is segmented into banking, government, real estate, retail & e-commerce (overstock, newegg, cryptopet, beesbros, and bitgild), and others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Cryptocurrency Market Analysis by Offering

The hardware segment in the cryptocurrency market is holding the largest share by offering. The main reasons for the growth of the segment is the higher processing speed and less power consumption of cryptocurrency miners. This segment encompasses hardware dedicated to crypto mining and exchange operations, exemplified by products like Bitmain Antminer S9i, Halong Mining DragonMint T1, Pangolin Whatsminer M3X, Avalon6, among others. The manufacturers have developed bitcoin mining hardware due to the shift in consumer preferences. GPUs are stable and effective and are used for creating mining devices. These are contributing to the dominance of the segment

On the other hand, the software segment within the cryptocurrency domain is the fastest growing segment by offering. The rising demand for the software designed for the exchange and mining of cryptocurrencies is the main factor driving the segment growth. This software helps in the management of large volumes of data. Notable examples in this realm include BeMine, ECOS, shamining, and CCG Mining, among others. Exchange software plays a pivotal role utilizing a trading engine, serving as a unified interface connecting offers and exchanges dealing in digital currency derivatives. The increase in demand for crypto exchange and crypto wallets software is increasing at a quick rate which is expected to drive the market in the forecasted period.

Cryptocurrency Market Analysis by Type

The bitcoin segment is the largest segment by type in the global cryptocurrency market and is contributing about 35.6% of the share. The rising adoption of the bitcoin exchange traded funds (ETFs) is therefore, surging the volume of the global bitcoin trades in the anticipated period. For instance, in May 2022, the purpose bitcoin ETF in Canada experienced the largest inflow of about USD 206 million.

On the other hand, the ethereum segment is the fastest growing segment in the global cryptocurrency market by type. It allows users to build a range of decentralized applications on its platform. The users are utilizing the ethereum network on a larger scale for their projects which is contributing to the expansion in the traffic, thus driving the segmental growth in this market.

North America is the largest region in the cryptocurrency market and has claimed the lion's share in the cryptocurrency market, boasting an impressive 42% of the total market share. This dominance has been entrenched since the early days of cryptocurrency trading, largely owing to regulations within Canada and the US that afford a degree of anonymity in crypto payments. There has been a rise in shift in the acceptance of cryptocurrencies as an asset for value storage which is driving the regional growth. There has been a huge number in the usage of cryptocurrencies in the NFTs in this region which further propels the regional market growth. The development in blockchain technology and advance solutions for cryptocurrency are also driving the market in this region. Investments made by the leading companies in this region are driving the market expansion.

Asia Pacific is the fastest growing region in the market and anticipates consistent growth in the cryptocurrency sector throughout the forecast period. It shares about 29% of the global revenue. Notably, significant economies like China and Japan are actively considering the adoption of cryptocurrencies by implementing regulatory frameworks regarding compliance and taxation within the industry. While these initiatives signify positive advancements, certain drawbacks are evident, notably limitations in accessing information and technology related to digital currencies. Moreover, the market players are partnering to address the market's competitiveness and expansion.

Cryptocurrency Market Drivers

Growing Demand for Transparency and Efficiency in Financial Payment Systems

Rising Awareness among People Regarding Crypto Currency

Cryptocurrency Market Restraints

Absence of Regulations Governing Creation and Valuation of Digital Assets

The competitive environment of the global crypto currency Market is dynamic and characterized by the presence of a mix of well-established brands, emerging players, and niche producers. Innovation is a key competitive factor. Leading brands invest in research and development to introduce new flavors, packaging formats, and health-focused variations to cater to changing consumer preferences. They often set the trends in the industry.

Cryptocurrency Market Top Player’s Company Profiles

• Ethereum (Switzerland)
• Bitcoin (US)
• Binance Coin (US)
• Cardano (Switzerland)
• XRP (Ripple) (US)
• Solana (US)
• Dogecoin (Sweden)
• Polkadot (Switzerland)
• Terra (Singapore)
• Chainlink (US)
• Internet Computer (US)
• Bitcoin Cash (US)
• Litecoin (Singapore)
• Uniswap (US)
• Polygon (MATIC) (UK)
• Cosmos (Switzerland)
• VeChain (Europe)
• Avalanche (Singapore)
• Algorand (Singapore)
• Shiba Inu (US)

Cryptocurrency Market Recent Developments

• In November 2023, the presentation of ETMarkets Crypto Corner, given in collaboration with Mudrex, marks the start of an excursion pointed toward unwinding the complexities of the innovation-driven speculation scene of digital currencies. We want to enlighten the potential dangers intrinsic in this developing space while offering thorough inclusion of every aspect of the cryptographic journey. Through our foundation, we endeavor to bring issues to light and give fundamental direction on exploring the administrative scene and anticipating impending standards in the digital currency space. Go along with us as we dig profound into the universe of cryptographic forms of money, engaging financial backers with the information expected to pursue informed choices in this unique market.

• In September 2023, Paysend, a UK-based FinTech innovator, and Visa, a global digital payments firm, declared a strategic collaboration. This partnership empowers Paysend's clients overall to send cash progressively to qualified Visa cards across 170 nations and domains.

• In January 2024, Bay Binance, a joint venture between Binance and Thailand's Bay Innova, sent off cryptocurrency exchange services to the overall population in Thailand. This send-off followed a welcome test directed in November. Thai clients currently can trade cryptographic forms of money with neighborhood cash matching utilizing their Binance TH accounts, as indicated by the articulation.

• Adoption of Digital Ledger Technology: The market's growth is chiefly fueled by the expanding presence of distributed ledger technology alongside heightened digital investment within venture capital circles. A notable trend has emerged in developing countries, where digital currency is increasingly adopted as a medium for financial exchanges. It also provides safer and faster transactions, which is attracting a larger consumer base, thus leading the market expansion. The surging popularity of digital assets such as Bitcoin and Litecoin stands poised to be a significant catalyst driving market expansion in the years ahead. Furthermore, digital currencies frequently use blockchain integration, aiming for decentralization and streamlined, efficient transaction processes.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

The global crypto currency market analysis reveals a dynamic marketplace with standout trends and difficulties. Bitcoin stands as one of the foremost and widely embraced forms of digital currency worldwide. Its prominence continues to soar, bolstered by increasing visibility, burgeoning investor interest, and evolving regulatory support, all contributing significantly to the market's expansion. The maturation of Bitcoin's value proposition and its ability to offer rewards for transactions further amplify the market value of digital cash. The rising popularity and awareness of cryptocurrency is further driving the market. The inclination of people towards digitalization has increased the customers, which is further expanding the market growth. The presence of many mining pools is also further driving the market. The hardware segment is holding the highest share whereas the software segment is growing at a quick pace. North America has the highest share whereas Asia Pacific is growing at a quick pace adopting new technologies and investments. One major trend is the adoption of digital ledger technology by consumers. Growing popularity of cryptocurrency in emerging and developed countries will help create many market opportunities.