4 major trends influencing cryptocurrency market growth through 2027
The cryptocurrency market is touted to record commendable proceeds over the coming years, driven by the surging requirement for low-cost digital payment systems across enterprises. Distributed ledger technology coupled with cryptocurrency have been instrumental in enabling the improvement of tracking capabilities and trading.
To that end, numerous tech majors across the globe have been emphasizing on the development of financial systems that are based on blockchain. For instance, in May 2021, Facebook announced the roll-out of its own cryptocurrency called Diem. The move is set to revolutionize the fintech space and the project, earlier dubbed Libra, will make the transfer of money as seamless as sending photos.
Such advancements are expected to drive the demand for different types of cryptocurrency through the estimated period. On this note, the cryptocurrency market share is anticipated to surpass USD 1.8 billion by 2027, according to the latest research by Global Market Insights, Inc.
This growth is attributed to the rising emphasis of cryptocurrency companies on digital assets. This, in turn, is expected to impel the development of innovative cryptocurrency hardware and software components, supporting business landscape over the ensuing years.
Few major trends propelling cryptocurrency industry growth are as follows:
Rising requirement from e-commerce & retail sectors
An increase in technology enterprises that are focusing on the development of advanced services and solutions for enabling cryptocurrency transactions in e-commerce applications is expected to propel the demand for cryptocurrency. The e-commerce & retail segment in the cryptocurrency industry is set to record appreciable revenue between 2021 and 2027.
In March 2021, RocketFuel Blockchain Inc., released its secure API solution that allows merchants and consumers to back their e-commerce applications. The product enables individuals to pay from an extensive range of cryptocurrencies on goods that are purchased online.
Increasing demand for Graphical Processing Units
GPUs are deployed over conventional CPUs for optimized performance in the process of cryptocurrency mining. The Graphical Processing Unit (GPU) segment is poised to expand at a substantial CAGR of over 10% through projected period.
GPUs are also used for addressing the requirement for high-performance efficiency in the processing of repetitive computations. The availability of advanced ALUs (Arithmetic Logic Unit) enable high extended output in applications associated with crypto mining.
Constant technological developments in North America
Consistent developments in technology coupled with extensive presence of several technology enterprises in North America is expected to augment the demand for cryptocurrency apps in the region. Owing to this, the North America cryptocurrency market size will record remarkable growth through the analysis period.
In addition, numerous tech companies are emphasizing on the enhancement of cryptocurrency mining capacities. Citing an instance, in March 2021, Marathon Digital Holding, Inc., planned the roll-out of bitcoin mining pool across the region. The firm ensures compliance with standards of anti-money laundering as well as OFAC.
Surging popularity of Ethereum
The emergence of smart contracts coupled with a rising emphasis on decentralized finance has been instrumental in augmenting the demand for Ethereum across enterprises.
One of the prominent cryptocurrencies, Ethereum features improved capacities of payment & cryptography. The cryptocurrency is also developed on the basis of the financial system of Ethereum Corporation. The system enables individuals to trade Ethereum for ETH-backed tokens.
In a nutshell, increasing advancements in block-chain financial technologies as well as distributed hyper ledgers, will escalate cryptocurrency market value through the assessment period.
This article has been authored by Madhura Dethe.