Cryptocurrency Market to Reach US$4 Billion by 2028

Cryptocurrency Market Prediction: The Cryptocurrency market size is expected to reach US$4.133 billion by 2028 from US$2.216 billion in 2023, with a CAGR of 15.64%. This is driven by the escalating use of digital currencies in developing and developed countries, along with blockchain technology providing more transparency and security. This article discusses the current industry scenario regarding the overall growth factors, recent developments, trends, restraints, etc in the cryptocurrency market.

Emerging requirements for the financial payment system with higher transparency and cost effective nature carry-forward the need of the cryptocurrency market. So the increase in the penetration levels of the internet and emergence of trading platforms that are more expensive friendly have led to such a trend.

Another major driver is the growing awareness and adoption of cryptocurrencies among the people. The flexibility of cryptocurrencies in supporting the buy-side and the appealing attention to make huge money has appealed to the investors, especially the youth, to increase the demand for Bitcoin.

The global cryptocurrency market has experienced significant growth, largely due to the scarcity of specific cryptocurrencies such as Bitcoin and increasing demand. This is a clear sign of the change in financial sponsorship and financial transactions happening internationally.

Other technological developments, such as blockchain — the technology which cryptocurrencies are built on to validate transactions — are also driving the growth of the market. Another catalyst for that will be the expansion of decentralized finance in the world of crypto, a trend that is having a similar over-sized impact on a number of projects with rising adoption and attracting investor focus to the market.

This expansion of the cryptocurrency market movement is also fueled by an increasing number of businesses (e.g., Tesla and MasterCard) accepting cryptocurrencies as an official form of payment. The initiation of the involvement of the cryptocurrencies in the largely unregulated domain has brought about the same effect.

The cryptocurrency market is not yet fully regulated, and the lack of clear regulations and uncertainty around the same are major factors restraining the adoption of cryptocurrencies. Regulatory bodies across the world are still working to establish common standards for cryptocurrencies, and the regulatory acceptance remains one of the biggest challenges.

Cryptocurrencies have the potential to transform peer-to-peer and remittance transactions, but users have to overcome challenges related to security, privacy, and control to fully benefit from them.

Since cryptocurrency transactions are recorded in a distributed public ledger (blockchain), hackers have a large attack surface to gain access to critical and sensitive information. These security concerns can deter users from adopting cryptocurrencies, thereby hindering the growth of the market. 

The cryptocurrency market has experienced significant volatility in prices, with major cryptocurrencies like Bitcoin and Ethereum witnessing sharp fluctuations. This volatility can deter mainstream adoption and hinder the growth of the cryptocurrency market, as it creates uncertainty and risk for investors and users. The price fluctuations can also lead to market crashes, which can result in significant financial losses for investors.

Despite the growing adoption, cryptocurrencies are still not widely accepted as a mainstream payment method by businesses and consumers. The limited acceptance of cryptocurrencies as a means of payment can restrict the growth of the overall cryptocurrency market. Many businesses are hesitant to accept cryptocurrencies due to the volatility in their prices and the lack of regulatory clarity.

The energy-intensive nature of cryptocurrency mining, particularly for Bitcoin, has raised concerns about the environmental impact of the cryptocurrency industry. The process of mining cryptocurrencies requires significant amounts of energy to power the computers that solve complex mathematical problems to validate transactions.

Recent developments in the cryptocurrency market highlight the increasing integration of AI technologies. Bybit has launched TradeGPT, an AI-powered tool providing real-time market data and personalized trading guidance. Similarly, Crypto.com introduced Amy, an AI platform for real-time token and market information.

Binance’s Binance Sensei offers an AI-driven learning tool through Binance Academy. These advancements demonstrate the growing symbiosis between AI and crypto, enhancing data processing, scalability, and transaction speeds while fostering innovation and collaboration within the industry.

Revolut, a global fintech company, has launched Revolut X, a standalone crypto trading platform for UK retail customers. This platform offers trading for over 100 tokens with competitive fees, featuring 0% maker and 0.09% taker fees. Available to all UK Revolut retail account holders, it allows seamless fiat-to-crypto trading without limits or fees.

This move follows the launch of Revolut Ramp, enabling users to purchase crypto directly in their Web3 wallets through a partnership with Consensys. Revolut aims to compete with leading crypto exchanges by providing a user-friendly, cost-effective trading experience. 

Mercuryo has partnered with Trust Wallet to introduce an off-ramp service, enabling users to convert cryptocurrencies into fiat currencies like USD and EUR. This service supports over 30 cryptocurrencies and is available in 135 countries, enhancing the link between Web3 and Web2.

Trust Wallet, which supports over 100 blockchains and more than 10 million assets, aims to make crypto-to-fiat conversions seamless and secure. This partnership reflects Trust Wallet’s commitment to improving user experience and accessibility in the Web3 space, aligning with Mercuryo’s global service reach.

Cryptocurrency investment platform, Mudrex has partnered with India’s largest tax filing platform, ClearTax to help bring tax clarity and simplify tax reporting for Indian crypto traders and investors. With this integration, Mudrex will help users in filing their Crypto Taxes with support provided by ClearTax for automated tax calculation and portfolio insights.

Users, though, will pay a small fee to access the discounted rates. It targets the well-proven low tax compliance in the Indian crypto community, as only 0.07% of crypto holders were taxable between 2022 and 2023, and endeavours to confirm regulatory compliance to the government.

CoinShares International Limited and Valkyrie Funds LLC announced a common Sponsor in that CoinShares is acquiring Valkyrie Funds LLC, including the Sponsor rights to the Valkyrie Bitcoin Fund, with approximately US$530 million in AUM being added onto CoinShares’ platform. This acquisition broadens CoinShares’ global AUM to about US$7.3 billion and represents an important milestone in the company’s U.S. expansion efforts.

CoinShares will use Valkyrie’s ETF infrastructure to build out its asset management products, in the U.S., focused within innovation and theme-based offerings. Integration will involve rebranding Valkyrie under the CoinShares banner, expanded product offerings and greater brand visibiliy within the U.S.

With the listing of IBTC, an Exchange Traded Fund launched by Monochrome Asset Management, Cboe Australia now offers Australia’s first and only Bitcoin Exchange Traded Fund, allowing direct exposure to Bitcoin within the Australian Financial Services Licensing framework. This comes amid increasing international demand for spot Bitcoin ETFs, with Monochrome set to launch additional products, including an Ethereum ETF.

However, new data reveals that the world has been more globalized in investing into Bitcoin than ever. The launch of Bitcoin spot ETFs in Hong Kong, institutional flows to US Bitcoin ETFs, and a wave of Bitcoin ETPs and ETCs on major European exchanges illustrates the trend recently. Klinger says these developments signal growing investor attention and trust in direct digital asset investment.

The New York Stock Exchange (NYSE) and CoinDesk Indices have announced a collaboration to launch cash-settled index options tracking the CoinDesk Bitcoin Price Index (XBX). This move aims to provide investors with new risk-management tools upon regulatory approval.

XBX, a widely trusted bitcoin spot price index, is already the benchmark for US$20 billion in ETF assets. This collaboration follows ICE Futures Singapore’s update to its bitcoin futures contracts, using XBX for monthly settlement. The partnership highlights increasing institutional interest in digital assets and the convergence of crypto and traditional finance.

In conclusion, the cryptocurrency market size is expected to reach significant figures in the coming years, driven by the increasing adoption of blockchain technology and the growing popularity of decentralized digital currencies. The market is expected to be driven by factors such as heightened investment in digital assets, expanded accessibility of crypto wallets, and rising expenditures in FinTech.

The growing future of cryptocurrency market is also expected to be fueled by the increasing use of cryptocurrencies in emerging and developed countries, as well as the growing transparency and security offered by blockchain technology.

Read a detailed analysis in this report.

Cryptocurrency is a rapidly growing digital asset class that is transforming the way we think about money and financial transactions. While it still faces regulatory and security challenges, its potential for efficiency, transparency, and accessibility makes it a promising candidate for a significant role in the future of money.

Cryptocurrency can be a good investment for those willing to take on the associated risks, as it offers the potential for high returns and diversification. However, it is crucial to thoroughly research and understand the market, regulatory environment, and security concerns before investing in cryptocurrencies like Bitcoin or Ethereum.

The best cryptocurrency to buy now depends on individual investment goals, risk tolerance, and market trends. However, popular choices include Bitcoin (BTC) due to its established market presence and potential for long-term growth, and Ethereum (ETH) for its versatility and increasing adoption in decentralized finance (DeFi) applications.

It is difficult to predict which specific cryptocurrency will pump soon. However, popular choices like Bitcoin (BTC) and Ethereum (ETH) have shown significant growth and adoption, making them attractive options for investors seeking long-term growth.

Accurately forecasting which cryptocurrency will yield a 1000x return in 2024 is challenging, as the market is subject to the influence of numerous variables, including regulatory changes, technological innovations, and investor psychology.