A joint research published by Boston Consulting Group (BCG), Bitget, and Foresight Ventures predicted that the total number of crypto users may reach one billion by 2030, if the trendline of crypto adoption continues.
“Crypto has come a long way in a short time. Over just a few years, the number of use cases has soared, and a deeper, more mature ecosystem has emerged. Through this process, the technology has grown from little more than a concept to becoming a key infrastructure, supporting applications across finance, commerce, gaming and social media,” the study stated.
The research entitled “What does the future hold for crypto exchanges?” first highlighted the factors that helped the crypto economy to mature.
According to it, the formation of a $54 trillion global crypto trading market in 2021 was brought by the increase in institutional inflows, the rise of Web3 applications that bring potential disruptions to all industries, and the rapid growth of crypto adoption in emerging markets.
The study also said that the Latin America and the Asia Pacific Regions are the most attractive regions that will experience expansion of global exchanges, given the high market potential along with relatively progressive local crypto regulations.
Meanwhile, it also showed the difference between the centralized and decentralized exchanges, explaining that “centralized exchanges provide ease of entry and better trading executions for top, large-cap coins, while decentralized exchanges democratize access to decentralized finance (DeFi) innovations by offering investors access to long-tail tokens and having better composability with decentralized applications.”
However, the research also emphasized the role of having a good regulation in able to expand crypto.
“Similarly to how the traditional finance market landscape has evolved historically, regulation will also play an important role in shaping the competitive end-state and preventing winner-takes-all situations.”
The study also made recommendations to explore this “fast-evolving” market:
- Short-to-medium term: Crypto exchanges should focus on strengthening product offerings by tailoring to their core customers and expanding to emerging markets.
- Medium-to-long term: Crypto exchanges should explore a combination of different growth tactics ranging from expanding into adjacent fields such as NFTs and DeFi, leveraging exchange tokens to bootstrap ecosystems and user growths, and expanding into traditional finance, especially in emerging markets where financial infrastructure is relatively immature and crypto has the potential to surpass traditional finance.
- Crypto exchanges can tap into emerging market opportunities by offering crypto-backed services such as loans, remittance, payment services and tokenized stock trading to local customers.
This joint research by the three companies specializing in crypto exchanges and in the blockchain, focused on studying about the crypto exchanges available to the public, reiterating that upon observing the available data before and the data in the present, there is a plenty of growth to come.
“The bottom line? Exchange leaders must be flexible and pragmatic about how and where they want to play. However, if they choose well and execute efficiently, there is potential to generate revenue and build a competitive advantage in an asset class that is still at the beginning of its journey,” the research concluded.
This article is published on BitPinas: One Billion Crypto Users by 2030, Says Study
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