Between now and 2024, the crypto market is estimated to experience a CAGR (Compound Annual Growth Rate) of 6.18% to comfortably attain a total valuation of $1.4 billion, up from the current $1.03 billion. That’s according to a recent report released by MarketsandMarkets, a firm that deals in market research.
The report is titled “Cryptocurrency Market by Offering (Hardware: GPU, FPGA, ASIC, & Wallet, and Software), Process (Mining and Transaction), Type, Application (Trading, Remittance, Payment: Peer-to-Peer Payment, Ecommerce, and Retail), and Geography – Global Forecast to 2024.”
Hardware Market To Boom
According to this report, special hardware used in handling and mining cryptocurrencies will occupy the largest market share during the mentioned projection period. That will be fueled by the fact that cryptos are about to go mainstream and there will be growing need to verify transactions – and that goes hand-in-hand with crypto mining. As such, investors in the mining sector will need reliable hardware supplies.
Various popular hardware companies have already taken notice of this development and entered the market to provide what’s needed to fuel the growth. The companies include AMD, NVIDIA, and Intel. Also, there are start-ups like GateHub, Bitmine, and Bitfury.
Peer-to-Peer Crypto Transactions To Spike
As cryptos score mass adoption, their value is expected to rise significantly, which also means an increase in peer-to-peer transactions within the decentralized blockchain system. MarketsandMarkets projects that peer-to-peer dealings will see the highest CAGR during this time period.
APAC Region To Grab The Biggest Crypto Market Share
The report also indicates that the Asia-Pacific (APAC) region will hold the biggest crypto market share from 2019 to 2024. That’s majorly supported by the availability of cheap electricity in China, favorable weather, and easy access to venture capital. Japan contributes to the large regional market share by virtue of its early adoption of cryptos. However, China will take the mantle as the largest shareholder within APAC. In fact, the world’s biggest crypto miners are based in China. These include Ebang Communications, Canaan, and Bitmain.
In an interesting twist, the report argues that despite the APAC region retaining the biggest market share, it won’t grow with a higher CAGR than the rest of the world (RoW). In this case, the RoW, especially Africa, will record the highest CAGR.
The report also warns that, although the crypto market in the RoW is expected to grow exponentially, the market will be plagued by issues of regulation and awareness of cryptos. To some extent, these factors will impede the market’s growth.
However, come 2024, the total valuation of the crypto market will have hit a whole new milestone at $1.4 billion.