It is estimated that the cumulative market cap of cryptocurrencies increased in early 2023 after the downfall in November 2022 due to FTX. That value declined in the summer of 2023, however, as international uncertainty grew over a potential recession. Bitcoin's market cap made up the majority of the overall market capitalization.

What is market cap?

Market capitalization is a financial measure typically used for publicly traded firms, computed by multiplying the share price by the number of outstanding shares. However, cryptocurrency analysts calculate it as the price of the virtual currencies times the number of coins in the market. This gives cryptocurrency investors an idea of the overall market size, and watching the evolution of the measure tells how much money is flowing in or out of each cryptocurrency.

Cryptocurrency as an investment

The price of Bitcoin has been erratic, and most other cryptocurrencies follow its larger price swings. This volatility attracts investors who hope to buy when the price is low and sell at its peak, turning a profit. However, this does little for price stability. As such, few firms accept payment in cryptocurrencies.

How many cryptocurrencies are there? In short, there were over 9,000 as of 2023, although there were many more digital coins in the early months of 2022. Note, however, that a large portion of cryptocurrencies might not be that significant. There are other estimates of roughly 20,000 cryptocurrencies existing, but most of these are either inactive or discontinued. Due to how open the creation process of a cryptocurrency is, it is relatively easy to make one. Indeed, the top 20 cryptocurrencies make up nearly 90 percent of the total market. Why are there thousands of cryptocurrencies? Any private individual or company that knows how to write a program on a blockchain can technically create a cryptocurrency. That blockchain can be an existing one. Ethereum and Binance Smart Chain are popular blockchain platforms for such ends, including smart contracts within Decentralized Finance (DeFi). The ease of crypto creation allows some individuals to find solutions to real-world payment problems while others hope to make a quick profit. This explains why some crypto lack utility. Meme coins such as Dogecoin - named after a Japanese dog species - are an infamous example, with Dogecoin's creator coming out and stating the coin started as a joke. The many different types of cryptocurrency Meme coins are but one group of cryptocurrencies. Other types include altcoins, utility tokens, governance tokens, and stablecoins. Altcoins are often measured against Bitcoin, as this refers to all crypto that followed after Bitcoin - the first digital currency ever created. Utility tokens and governance tokens are somewhat connected to NFTs and the metaverse. A specific example is the MANA cryptocurrency, which allows real estate purchases in the Decentraland metaverse. Stablecoins refer to the likes of Tether, which are pegged to a real-world asset like the U.S. dollar. Such coins are meant to be less volatile than regular cryptocurrency.

The global user base of cryptocurrencies increased by nearly 190 percent between 2018 and 2020, only to accelerate further in 2022. This is according to calculations from various sources, based on information from trading platforms and on-chain wallets. Increasing demographics might initially be attributed to a rise in the number of accounts and improvements in identification. In 2021, however, crypto adoption continued as companies like Tesla and Mastercard announced their interest in cryptocurrency. Consumers in Africa, Asia, and South America were most likely to be an owner of cryptocurrencies, such as Bitcoin, in 2022.

How many of these users have Bitcoin?

User figures for individual cryptocurrencies are unavailable. Bitcoin, for instance, was created not to be tracked by banks and governments. What comes closest is the trading volume of Bitcoin against domestic fiat currencies. The source assumed, however, that UK residents were the most likely to make Bitcoin transactions with British pounds. This assumption might not be accurate for popular fiat currencies worldwide. On top of that, coins such as Tether or Binance Coin - referred to as "stablecoins" - are often used to buy and sell Bitcoin. Those coins were not included in that particular statistic.

Wallet usage declined

Total crypto wallet downloads were significantly lower in 2022 than in 2021. The number of downloads of Coinbase, Blockchain.com, and MetaMask, among others, declined as the market hit a "crypto winter" over the year. The crypto market also suffered bad press when FTX - one of the largest crypto exchanges based on market share - collapsed in November 2022. Binance, on the other hand, regained some of the market share it had lost between September and October 2022, growing by 0.8 percentage points in November.

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Cryptocurrency Market Size 2025-2029

The cryptocurrency market size is forecast to increase by USD 39.75 billion at a CAGR of 16.7% between 2024 and 2029.

The market continues to evolve at an unprecedented pace, driven by increasing investment in digital assets and growing acceptance by retailers as a legitimate form of currency. According to recent reports, global investment in cryptocurrencies reached an all-time high in 2020, with institutional investors leading the charge. This trend is expected to continue, as more financial institutions explore the benefits of cryptocurrencies for portfolio diversification and transaction settlement. However, the market's volatility remains a significant challenge for both investors and businesses. The value of cryptocurrencies can fluctuate dramatically in a short period, making it difficult to predict future trends and assess risk. Despite this, many companies are finding ways to capitalize on the opportunities presented by the market. For instance, some retailers have begun accepting Bitcoin and other cryptocurrencies as payment, while others are exploring blockchain technology to streamline transactions and enhance security. To navigate this complex and dynamic market, companies must stay informed about the latest trends and developments. This includes keeping abreast of regulatory changes, technological advancements, and market sentiment. By doing so, they can position themselves to take advantage of emerging opportunities and mitigate potential risks. Overall, the market offers significant potential for growth and innovation, but also presents unique challenges that require careful planning and strategic foresight.

What will be the Size of the Cryptocurrency Market during the forecast period?

Request Free SampleThe market, driven by the underlying technology of blockchain, represents a decentralized currency system that has gained significant global adoption as a digital alternative to traditional fiat currencies. With a total market capitalization surpassing USD2 trillion, this dynamic market is characterized by price volatility, presenting both opportunities and risks for investors. Theft and security concerns, regulatory outlook, and energy consumption with environmental effects are among the challenges faced by this industry. Skilled developers and financial services institutions are increasingly embracing this digital revolution, leveraging blockchain technology to create innovative consumer protection solutions and ensure financial stability. Meanwhile, the rise of decentralized systems and public ledgers has given way to the proliferation of digital assets, leading to an influx of fraudulent investments. Renewable energy sources and blockchain talent are becoming essential components of the cryptocurrency ecosystem as the industry strives to address concerns related to energy consumption and environmental effects.

How is this Cryptocurrency Industry segmented?

The cryptocurrency industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeBitcoinEthereumOthersRippleBitcoin CashCardanoComponentHardwareSoftwareProcessMiningTransactionMiningTransactionEnd-UseTradingE-commerce and RetailPeer-to-Peer PaymentRemittanceTradingE-commerce and RetailPeer-to-Peer PaymentRemittanceGeographyNorth AmericaUSCanadaEuropeGermanyItalySwitzerlandThe NetherlandsUKAPACChinaJapanSouth AmericaBrazilMiddle East and Africa

By Type Insights

The bitcoin segment is estimated to witness significant growth during the forecast period.Bitcoin, the largest cryptocurrency by market capitalization, is a decentralized digital currency valued at over USD470 billion. It operates on a peer-to-peer (P2P) system without central authorities. The top four stablecoins, Tether, USD Coin, Binance USD, and DAI, are directly pegged to the US dollar and collectively hold a significant market share. In the US, approximately 8% of the population engages in cryptocurrency trading. Bitcoin, as a digital asset, is created, stored, processed, and transferred using blockchain technology – a decentralized system. Other cryptocurrencies like Ethereum, Ripple, and Litecoin also follow this model. The market is evolving, with financial services increasingly adopting digital assets for transactions, investments, and consumer protection. Blockchain technology powers digital wallets, crypto exchanges, and smart contracts, enabling decentralized finance, token offerings, and decentralized applications. The market is subject to price volatility and theft risk, necessitating wallet security and regulatory compliance. Energy consumption and environmental effects are areas of concern, with renewable energy solutions emerging. Skilled developers are in high demand for cre

Introduction

Bitcoin Statistics: Bitcoin, often called "digital gold" or a "cryptocurrency," emerged in 2009, created by an enigmatic individual known as Satoshi Nakamoto.

It functions on a decentralized blockchain network, notable for its capped supply of 21 million coins, establishing it as a deflationary asset.

Bitcoin enables direct peer-to-peer transactions without intermediaries, employing robust cryptographic security measures.

It has garnered recognition as a digital store of value and a medium of exchange, attracting investments and offering potential solutions for remittances and financial inclusivity.

Despite encountering obstacles like regulatory scrutiny and scalability concerns, Bitcoin's continual development is disrupting conventional financial systems, and its enduring influence on the worldwide economy remains a topic of profound interest and pioneering advancements.

Crypto trader Binance ranked among the largest cryptocurrency exchangers in the world in 2024, with trading volume that was several times as high as Bybit or OKX. It should be noted that these figures are separate from platforms Binance.US, Binance TR or Binance.KR. The platform from the Cayman Islands faced investigations from the U.S. SEC, which came to a head in November 2023. Binance did not rank as the most used cryptocurrency exchanges used by consumers in the United States. Binance's settlement with the U.S. In November 2023, Binance agreed to pay a four billion U.S. dollar settlement with United States agencies — one of the biggest corporate fines in U.S. history. The U.S. Department of Justice investigated the platform for years for failure to prevent money laundering and growing crypto theft. The company's founder and CEO Changpeng Zhao pleaded guilty to the charges, agreeing to step down. Zhao would remain as the company's majority shareholder. The U.S. Treasury announced Binance will be subject to five years of monitoring and “significant compliance undertakings, including to ensure Binance’s complete exit from the United States.” Mixed signals from crypto companies The Binance settlement occurred in a month when overall crypto trading volume recorded its highest numbers for all of 2023. One of the main causes is the sudden popularity of FTT, a token released by FTX — the company founded by Sam Bankman-Fried. The developments surrounding Binance caused investors to move away from Binance's stablecoin BNB to the stablecoin from FTX. Earlier in November 2023, however, Coinbase saw its shares fall after announcing its quarterly performance figures.

In March 2024 Bitcoin BTC reached a new all-time high with prices exceeding 73000 USD marking a milestone for the cryptocurrency market This surge was due to the approval of Bitcoin exchange-traded funds ETFs in the United States allowing investors to access Bitcoin without directly holding it This development increased Bitcoin’s credibility and brought fresh demand from institutional investors echoing previous price surges in 2021 when Tesla announced its 15 billion investment in Bitcoin and Coinbase was listed on the Nasdaq By the end of 2022 Bitcoin prices dropped sharply to 15000 USD following the collapse of cryptocurrency exchange FTX and its bankruptcy which caused a loss of confidence in the market By August 2024 Bitcoin rebounded to approximately 64178 USD but remained volatile due to inflation and interest rate hikes Unlike fiat currency like the US dollar Bitcoin’s supply is finite with 21 million coins as its maximum supply By September 2024 over 92 percent of Bitcoin had been mined Bitcoin’s value is tied to its scarcity and its mining process is regulated through halving events which cut the reward for mining every four years making it harder and more energy-intensive to mine The next halving event in 2024 will reduce the reward to 3125 BTC from its current 625 BTC The final Bitcoin is expected to be mined around 2140 The energy required to mine Bitcoin has led to criticisms about its environmental impact with estimates in 2021 suggesting that one Bitcoin transaction used as much energy as Argentina Bitcoin’s future price is difficult to predict due to the influence of large holders known as whales who own about 92 percent of all Bitcoin These whales can cause dramatic market swings by making large trades and many retail investors still dominate the market While institutional interest has grown it remains a small fraction compared to retail Bitcoin is vulnerable to external factors like regulatory changes and economic crises leading some to believe it is in a speculative bubble However others argue that Bitcoin is still in its early stages of adoption and will grow further as more institutions and governments recognize its potential as a hedge against inflation and a store of value 2024 has also seen the rise of Bitcoin Layer 2 technologies like the Lightning Network which improve scalability by enabling faster and cheaper transactions These innovations are crucial for Bitcoin’s wider adoption especially for day-to-day use and cross-border remittances At the same time central bank digital currencies CBDCs are gaining traction as several governments including China and the European Union have accelerated the development of their own state-controlled digital currencies while Bitcoin remains decentralized offering financial sovereignty for those who prefer independence from government control The rise of CBDCs is expected to increase interest in Bitcoin as a hedge against these centralized currencies Bitcoin’s journey in 2024 highlights its growing institutional acceptance alongside its inherent market volatility While the approval of Bitcoin ETFs has significantly boosted interest the market remains sensitive to events like exchange collapses and regulatory decisions With the limited supply of Bitcoin and improvements in its transaction efficiency it is expected to remain a key player in the financial world for years to come Whether Bitcoin is currently in a speculative bubble or on a sustainable path to greater adoption will ultimately be revealed over time.

The Cryptocurrency Market size will exceed a valuation of USD 3141.32 million by 2032, to grow at a CAGR of 11.5% during the forecast period.

Crypto 24h trading volume declined as 2023 progressed, with figures being one-third lower than in 2022. The decline follows after Binance and Coins - two of the biggest crypto exchanges in the world - received lawsuits in the United States. Observations are also that the crypto market was quiet after April, citing a lack of a "strong overarching narrative". This is in contrast to 2021 and 2022 when cryptocurrency dominated the news and many people sought fortune in the digital currency.

Bitcoin developments

Bitcoin's trade volume slowed in the second quarter of 2023, after hitting a noticeable growth at the beginning of the year. The coin outperformed most of the market. Some attribute this to the announcement in June 203 that BlackRock filed for a Bitcoin ETF. This iShares Bitcoin Trust was to use Coinbase Custody as its custodian. Regulators in the United States had not yet approved any applications for spot ETFs on Bitcoin.

Changes in Ethereum staking in 2023

Ethereum's trade volume changed in 2023 due to the rollout of the Shapella (Shanghai and Cappella) upgrade. The update allowed investors to withdraw (unstake) Ethereum deposited into the network. Staking can be somewhat compared to depositing money at a bank, where one would submit money to be held and gains interest as time goes by. Lido has the highest staking pool (a platform that allows for staking) in Ethereum, higher than major crypto exchanges Coinbase and Kraken.

Consumers from countries in Africa, Asia, and South America were most likely to be an owner of cryptocurrencies, such as Bitcoin, in 2024. This conclusion can be reached after combining 55 different surveys from the Statista's Consumer Insights over the course of that year. Nearly one out of three respondents to Statista's survey in Nigeria, for instance, mentioned they either owned or use a digital coin, rather than six out of 100 respondents in the United States. This is a significant change from a list that looks at the Bitcoin (BTC) trading volume in 44 countries: There, the United States and Russia were said to have traded the highest amounts of this particular virtual coin. Nevertheless, African and Latin American countries are noticeable entries in that list too. Daily use, or an investment tool? The survey asked whether consumers either owned or used cryptocurrencies but does not specify their exact use or purpose. Some countries, however, are more likely to use digital currencies on a day-to-day basis. Nigeria increasingly uses mobile money operations to either pay in stores or to send money to family and friends. Polish consumers could buy several types of products with a cryptocurrency in 2019. Opposed to this is the country of Vietnam: Here, the use of Bitcoin and other cryptocurrencies as a payment method is forbidden. Owning some form of cryptocurrency in Vietnam as an investment is allowed, however. Which countries are more likely to invest in cryptocurrencies? Professional investors looking for a cryptocurrency-themed ETF were more often found in Europe than in the United or China, according to a survey in early 2020. Most of the largest crypto hedge fund managers with a location in Europe in 2020, were either from the United Kingdom or Switzerland - the country with the highest cryptocurrency adoption rate in Europe according to Statista's Global Consumer Survey. Whether this had changed by 2021 was not yet clear.

Global Crypto Currency Market size was valued at USD 4.57 billion in 2022 and is poised to grow from USD 5.14 billion in 2023 to USD 13.19 billion by 2031, growing at a CAGR of 12.5% in the forecast period (2024- 2031).

Total cryptocurrency losses were valued at over 15 billion U.S. dollars between 2021 and 2024, although most of these came from early in the period mentioned. This is according to data from web 3 crowdsourced security platform Immunefi. While the source does not clearly state how it estimated its figures, it claims most losses occurred in Q2 2021 - citing the fraud cases of Africrypt, with a 3.5 billion U.S. dollar loss, and Thodex, with a two billion U.S. dollar loss. Much like the annual value of cryptocurrency losses from REKT Database, Immunefi seems to rely on publicly available data, and community reporting. This is not unusual for digital assets, as they are decentralized - meaning these are not tracked "officially" by government or regulatory bodies.

At the end of December 2024, the Ethereum cryptocurrency had been processed well to 39 million times on-chain that month. This was about three times that of the more commonly known rival Bitcoin, which saw a total of 12.7 million transactions that month. Other leading cryptocurrencies also saw significantly less transaction activity. What kind of transactions were these? Cryptocurrencies are digital currencies which owe their credibility to their technology rather than a central bank. Many of the transactions in this statistic involve cryptocurrency exchanges which exchange these coins for other currencies, including traditional currencies such as U.S. dollars or euros. In selected countries, Bitcoin ATMs also dispense the local currency in exchange for Bitcoin. However, few retailers accept that or any other cryptocurrency on a large scale. Cryptocurrency as an investment Many cryptocurrency enthusiasts point to the high market capitalization of their favorite cryptocurrencies. Moreover, the currency price is an important factor. The price volatility of Bitcoin and others attracts investors, hoping to buy low and sell high.

The estimated time with which Kraken would confirm a deposit of certain cryptocurrencies varied from between near-instantaneous to up to several hours. Bitcoin, for instance, could take around 40 minutes - depending on the fees involved - whereas tokens like Cardano or Solana could be handled almost immediately. The transaction speed matters as it indicates which cryptocurrency is more efficient. A higher efficiency means that the blockchain underneath the coin is more capable of transferring data from one party to the other and confirm transactions. Transaction speed can be influenced by several factors, including block time, block size, transaction fees, and network traffic.

American adults with a relatively high income were more likely than adults with lower incomes to hold cryptocurrency as an investment tool. This is according to an annual household survey in the United States, that asked about how and why consumers would be using the digital asset. Seven percent of American adults used crypto solely for investment purposes, while only two percent utilized it for payment transaction. The market share of cryptocurrency as a dedicated payment method was relatively low in the U.S., like in other countries. A low market size in e-commerce The impression from this survey - most consumers viewing crypto primarily as an investment vehicle, not a day-to-day payments tool - is backed up elsewhere. A 2023 ranking of the most used payment methods in global e-commerce, based on transaction value, predicted cryptocurrency was used in about 17.5 billion U.S. dollars' worth of online shopping, or 0.2 percent of the total market in 2023. A forecast on the value of crypto payments in e-commerce predicted a 0.5 percent market share by 2026. Uncertainty in the industry Central banks had a clear opinion on whether blockchain has a future part to play in the global payments industry: Nearly two-thirds of central banks worldwide were "unsure". 15 percent of the respondents imagined domestic use cases for blockchain payments, against 13 percent who pictured cross-border solutions. Interestingly, payment industry professionals believed blockchain and cryptocurrency a less important payment tech trends in 2024 than real-time payments or tokenization.

Since 2022, hacks were the main reason behind cryptocurrency losses. 2021 was the exception during this time period, when fraud led to the highest volume of funds lost. This is according to data from web3 crowdsourced security platform Immunefi. While the source does not clearly state how it estimated its figures, it claims that over 60 percent of all cryptocurrency losses between 2021 and 2024 can be attributed to hacks.

Although a majority of U.S. adults in early 2021 was not interested in cryptocurrencies as a tool for investments, more people had become aware of them. The percentage of respondents who said in two surveys in 2021 and 2019 that they had not invested in digital currencies like Bitcoin or Ethereum, and were not going to, had remained the same. The respondents who said they had not heard of cryptocurrencies declined in this same period, however. This might have several causes, including the price increases of Bitcoin (BTC) in early 2021 or Tesla's growing involvement in cryptocurrencies. One other reason might be PayPal: the payment provider announced in October 2020 that it would be possible to buy virtual currencies using a PayPal wallet. By the end of 2020, Paypal had recorded its highes-ever total payment volume or TPV.

Cryptocurrency hacks and thefts increased substantially in 2022, especially due to Terra Classic and FTX. The source mentions that the average value lost in 2022 was roughly five-fold than in 2021. 2022 was shaken by several high-profile incidents that rippled through the entire market. The fall of stablecoin UST resulted in the loss of other cryptocurrencies, whereas multiple crypto exchanges suffered from the fall of FTX at the end of the year.

The proportion of respondents aged between 28 and 43 who utilize cryptocurrencies for crypto purposes was significantly higher compared to the other age groups. This is according to a survey held in 14 different countries across North America, Europe, and Latin America. When it came to gender, men were more likely to use digital currencies than women.

People in Colombia used cryptocurrencies more often than they did in Brazil or other Latin American nations to buy more coins. This is according to a survey held in seven different countries across the region. The study found that Colombia, Peru, and Argentina used cryptocurrency more frequently than other Latin American countries when buying more cryptocurrency.