PUBLISHER: Allied Market Research | PRODUCT CODE: 1414914
PUBLISHER: Allied Market Research | PRODUCT CODE: 1414914
According to a new report published by Allied Market Research, titled, "Virtual currency Market," The virtual currency market was valued at $2.4 billion in 2022, and is estimated to reach $89.7 billion by 2032, growing at a CAGR of 14.3% from 2023 to 2032.
The virtual currency market is driven by surge in interest from institutional investors. Institutional investors, such as corporations and hedge funds, have become more aware of the potential of virtual currencies such as Bitcoin as an inflation hedge and store of wealth. Their arrival gives the Bitcoin ecosystem as a whole more credibility, which encourages wider adoption along with bringing significant cash to the market. The surge in institutional interest has resulted in a more developed and stable virtual currency market, as well as enhanced market liquidity and decreased volatility. Furthermore, rise in digitalization and Tech Adoption has driven the demand for the virtual currency market. However, security concerns and cybersecurity risks have hampered the expansion of virtual currency markets. Cybercriminals who aim to take advantage of weaknesses in exchanges, wallets, and smart contracts find cryptocurrencies appealing due to their decentralized and anonymous characteristics. Released fraud cases and breaches have damaged investor confidence, preventing widespread adoption. Security concerns are further heightened by unclear regulations and the possibility of illegal activity. It is critical to solve such cybersecurity issues through strong laws and regulationsto promote long-term growth as the market seeks wider acceptability. Furthermore, regulatory uncertainty and compliance challenges must restrict the virtual currency market growth. On the contrary, the virtual currency market are expected to benefit from the integration of central bank digital currencies (CBDCs) giving the virtual currency market a strategic opportunity by offering a framework that is regulated and supported by the government. This builds credibility and makes it easier for it to be adopted by the general public, which encourages more participation and trust from institutional and retail investors. CBDCs are anticipated to encourage wider adoption and quicken the market expansion by serving as a link between decentralized cryptocurrencies and established financial systems.
The virtual currency market is segmented on the basis of type, usage, and region. On the basis of type, the market is bifurcated into centralized virtual currency, and decentralized virtual currency. On the basis of usage, it is segmented into trading, e-commerce and retail, remittance, payment, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the virtual currency market such as Binance, Bitstamp, Block.one Coinbase, Cointelegraph, Gemini Space Station, HTX Global, iFinex Inc., Payward, Inc., and Robinhood. These players have adopted various strategies to increase their market penetration and strengthen their position in the virtual currency market.
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