Blockchain Finance Market Set to Skyrocket to $79.3B by 2032, Driven by Public Blockchain Dominance
Summary:
The blockchain finance market is predicted to burgeon to a $79.3B industry by 2032, according to Allied Market Research. This growth is attributed to strategies like collaborations and acquisitions among industry players, disruption in traditional finance due to COVID-19, and potential operational cost reduction. Public blockchain dominates the market, with Bitcoin (BTC) and Ether (ETH) being key players. The biggest application subsegments are cross-border payments and trading, and this trend is expected to continue, fueled by the search for cheaper fund transfer alternatives. Despite North America's dominance in 2022, a 60.5% compound annual growth rate has been forecasted for the industry, supported by a Ripple report highlighting potential savings of $10 billion in transfer fees by 2030 due to blockchain.
The blockchain finance sector, which includes public and private blockchains, trading, payments, settlements and asset management, is set to expand to a $79.3B industry by 2032. This prediction comes from a study by Allied Market Research, which also noted that mergers and collaborations are prevalent strategies amongst industry players. The shifting landscape of traditional finance due to COVID-19 and the potential to lower operational costs have set the scene for a digital ecosystem revolution. The public blockchain sub-category currently dominates the market. By 2023, the majority of blockchains used globally will be public ones, with Bitcoin (BTC) and Ether (ETH) being noted examples. The report suggests that public blockchains' ability to harness vast computational power suits them for managing extensive distributed ledgers for financial transactions, a factor expected to catalyze the blockchain finance sector's growth. Regarding applications, cross-border payments and trading are amongst the biggest subsegments, largely due to demand from individuals, businesses, retailers, industries and international development bodies. Predictions indicate this trend will continue as users seek more cost-effective ways of transferring their funds worldwide. In 2022, North America was at the forefront of the blockchain finance market, a trend expected to continue. Based on analysis of sector trends and dynamics, Allied Market Research anticipates a compound annual growth rate (CAGR) of 60.5%, leading to a market worth $79.3 billion. Ripple, a digital payment network, recently published a report indicating that blockchain could save financial institutions around $10 billion in transfer fees by 2030. The report shows that top global payment leaders are dissatisfied with traditional cross-border payment methods. A survey revealed that over half the respondents see cryptos' main benefit as reducing both domestic and international payment costs. This observation supports Allied Market Research's market growth predictions, which are based on more cost-effective and secure options.
Published At
10/4/2023 8:57:45 AM
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