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The research firm predicts that the crypto market will triple with a 12.8% compound growth rate and be worth $4.94 billion by 2030.
The crypto market will triple by 2030, according to a report by Allied Market Research. The study states that the crypto market will hit $4.94 billion by 2030, representing a projected annual compound growth rate of 12.8% in the next 9 years. Allied Market points out two factors as the main facilitators of the projected market growth. These include an increase in demand for international remittances and added transparency in global payments systems. To a lesser extent, however, Allied Market suggests that lack of individual awareness on crypto also drives crypto growth. The research company explains this by saying that untapped emerging economies offer some of the most lucrative opportunities for crypto growth.
Notably, the estimated value of the digital currencies market in 2020 was $1.49 billion, two-thirds of which came from mining activities. Furthermore, Allied Market Research opines that mining will continue playing a key role in crypto growth through 2030.
The outbreak of the pandemic negatively impacted the mining industry. Covid distorted the supply of necessary mining equipment, which subsequently led to fewer mining operations. The resultant effect was that the global crypto market took a dip, especially during the heat of the outbreak. However, indicators suggest that the mining industry is rebounding fast. This is evident in Twitter founder Jack Dorsey’s decision to begin crypto mining.
Crypto Enterprises Grow
The AMR report also stated that the transaction segment of the crypto market would experience the fastest growth. In addition, the same report projects that the Asia-Pacific crypto industry would be the fastest-growing of all the regions. According to the report, this is so because of the increased competition from several new exchange startups in that region. In 2020, the Asia-Pacific region held the major share in the global crypto market – almost half. Europe and North America took the second and third positions. So far, the key players in the digital currency space comprise Asia, European and American exchange companies. They include:
- BitFury Group Limited
- BTL Group Ltd.
- Intel Corporation
- Ledger SAS
- NVIDIA Corporation
- Coincheck Inc.
- Advanced Micro Devices Inc.
- Xilinx Inc.
- Xapo Holdings Limited
Apart from AMR’s Triple Projection, Crypto Asset Management Market Also Expected to Grow
In a separate report released earlier, Allied Market Research forecasted significant growth in the crypto asset management market. The research company projected growth from $670 million in 2020 to $9.4 billion in 2030. This represents a compound annual growth rate of 30% from 2021 to 2030. AMR says increased digitization of financial services, easier access to crypto, and growing crypto investments will drive growth.
The report also earmarked the Asia-Pacific Region as one to experience the most significant growth in this study. Allied Market attributes the reason for this to the large crypto-mining enterprise presence throughout the region. It states this will drive the demand for asset-management solutions that these mining enterprises can benefit from business-wise.
Allied Market Research is a subsidiary of Allied Analytics LLP. The company specializes in full-service market research and business consulting and is based in Portland, Oregon.