If you wonder how the crypto market has grown to staggering numbers, this article is right for you. Did you know that more than 1 in 10 working internet users now have some form of cryptocurrency, according to DataReportal? After their launch, it has become possible to transact fast and cheaply, among other benefits that have increased the appeal of digital currencies. A study recently found over 560 million crypto users as of 2024, with Statista anticipating the value to reach 861 million next year. The same report suggests that the global crypto market cap is over $2.2 trillion – Bitcoin makes up slightly over 50% of this. Let’s look at some reasons why things may go the way of Statista’s projection.
The role of developing countries
For those who remember, Bitcoin once traded at $0.0009 for each coin. Over the years, different market dynamics have caused the price of Bitcoin to now rise to $56,520.61, according to data from Binance, as of 6 September 2024. Such factors contribute to the rising numbers of investors interested in this currency. It’s no wonder Statista recently highlighted that there were about 332,667 global Bitcoin network transactions per day, with the BTC 24-hour trading volume reaching up to $27.32 billion.
Countries like El Salvador and the Central African Republic have approved Bitcoin as legal tender. Others, like Nigeria, have recognized the need for state representation of digital currencies in the form of central bank digital currencies. It is as though this trend might continue, especially now that many economies are seeking to become financially inclusive through CBDCs.
When we look into crypto analysis done by the World Population Review, as of January 2024, 14 out of 20 top economies with the highest crypto ownership were recorded from developing countries. India, for instance, which has only 7.23% of its population owning crypto accounts, tops the list, with China and Vietnam following closely behind.
As mentioned, speed is among the top reasons for crypto’s growing adoption. Many individuals from developing countries work abroad and may want to send money to their loved ones. According to the World Bank, remittances from low—and middle-income countries reached $669 billion last year, and using crypto for such transactions can come in handy in cases where the funds have urgent needs.
More examples of industries adopting crypto
Besides the financial sector, other industries are also reaping the benefits of crypto, and digital entertainment is one of them. According to Priori Data, Esports games like Axie Infinity, which had an estimated 2.7 million active users in 2022, allow players to earn crypto while playing Pokemon-style games.
For those who are into sports, you probably have noticed the cricket startup NFT firm FanCraze. Recently, the firm secured a USD100 million funding contract in a series A funding round that included the participation of Portugal soccer legend Cristiano Ronaldo.
Well, this is not the first time the world-famous player, with a followership of over 500 million Instagram fans, has been supporting crypto assets and launching NFT collections. As research by Villanova University suggests, the star’s stance might influence a good percentage of his loyal followership into crypto.
What about developed economies?
Just recently, in 2023, the UK witnessed the launch of the UK Centre for Blockchain Technologies (UK CBT), which could boost the furtherance of crypto technology like the Solana network in the country. This has also brought consolation for many crypto enthusiasts who have found homes in some of Solana communities like the Superteam UK. Good enough, institutions like the DLT Science Foundation and the University of Birmingham welcomed this move.
Meanwhile, the World Economic Forum launched an investigation in 2023 to see how crypto could be leveraged for positive climate action. The initiative ultimately aimed at attracting digital technologies to support the emergence of green-powered microgrids and extend a wide range of conservation and land-use initiatives to small farmers and businesses, forest stewards and indigenous communities around the world.
ETF approval boosts Crypto market
The crypto market has actually risen by 44% just this year. Driven by the increasing approval of spot ETFs, Bitcoin alone has attracted over $17 billion in net inflows. In fact, Statista indicates that about $3 billion was transferred from centralized exchanges into Ether’s ETFs after the US Securities and Exchanges Commission approved spot ETFs.
Exploding Topics also suggested that the daily average crypto trading volume reached USD 2.5 billion, emphasising ETFs’ influence in the crypto market.
Binance analysts presented that the total market capital of virtual digital assets (VDAs) rose to over USD 720 billion last year, increasing Bitcoin’s market shares from 50% to above 55%. The company’s CEO, Richard Teng, also noted that the VDA’s growth was affected by the enthusiastic reception of the currency’ ETFs.
Conclusion
Who knew the world would open up to crypto this much? Many sectors, like the digital entertainment industry, have benefitted from this technology, which seems like the future trend. Since more industries have yet to exploit crypto’s potential fully, the number of users might continue increasing, just like Statista predicts.
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