- October 4, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
COVID-19 pandemic-induced disruptions in traditional finance, coupled with the promise to reduce operational costs, set the stage for mainstreaming the digital ecosystem.
The global blockchain finance market — encompassing public and private blockchains, trading, payments, settlements and asset management — is well-positioned to grow into a $79.3B market by 2032.
A report by Allied Market Research revealed that the blockchain finance market players are heavily exploring collaborations and acquisitions as a top strategy. COVID-19 pandemic-induced disruptions in traditional finance, coupled with the promise to reduce operational costs, set the stage for mainstreaming the digital ecosystem.
In 2023, the public blockchain sub-segment represents the lion’s share of the type of blockchains being used worldwide. Bitcoin (BTC) and Ether (ETH) are some of the prominent crypto ecosystems that use public blockchains. Public blockchains come with numerous upsides, as explained in the report:
“Public blockchains leverage significant computational power, making them ideal for maintaining large distributed ledgers associated with financial transactions. These factors are anticipated to boost the blockchain finance market.”
When it comes to the applications of blockchain finance, cross-border payments and trading are two of the largest sub-segments, driven by the rising demand from individuals, enterprises, merchants, industries and international development groups.
As shown above, the trend is expected to continue as users seek cheaper alternatives to move their savings worldwide. North America dominated the blockchain finance market in 2022 and is expected to maintain its lead for adoption.
Based on the quantitative analysis of trends and dynamics of the blockchain finance industry, Allied Market Research predicted a compound annual growth rate of 60.5%. Based on the estimates, the industry is poised to grow into a $79.3 billion market.
Related: Beyond finance and Bitcoin: How blockchain is disrupting secure messaging
A report recently published by digital payments network Ripple revealed that blockchain could potentially save financial institutions approximately $10 billion in cross-border payment costs by the year 2030.
Results show that global payments leaders are dissatisfied with legacy rails for cross-border payments.
Learn why 97% believe #blockchain and #crypto will transform the way money moves in our latest whitepaper with @Faster_Payments. https://t.co/qacuAAzZrR pic.twitter.com/ForjM05Wbb
— Ripple (@Ripple) July 28, 2023
“In the survey, over 50% of respondents believe that lower payment costs — both domestically and internationally — is crypto’s primary benefit,” the report notes. The statement complements Allied Market Research’s report, which bases its growth trajectory prediction on cheaper and safer alternatives.
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