Bitrabo Editorial
After a challenging end to 2022, the cryptocurrency industry has experienced growth in the first half of 2023, with a significant increase in global crypto revenue. Despite high regulatory charges, particularly in the United States, this positive trend is predicted to continue as global crypto revenue is expected to skyrocket in the coming years.
Global Crypto Revenue to Reach $1.1 Trillion by 2030
According to a report by GlobalData titled “Thematic Intelligence: Cryptocurrencies,” global cryptocurrency revenue is projected to reach a value of $1.1 trillion by 2030. This would be a substantial improvement from the $33 billion profit recorded in 2022. The report also predicts that the metaverse, a major innovation of Web3, will grow into a $627 billion market.
Despite the infamous 2022 “crypto winter” that witnessed the collapse of prominent crypto entities and the FTX Exchange in November 2022, institutional interest and the number of retail users in crypto have increased since the beginning of the year. Moreover, governments around the world are positioning their countries as crypto hubs.
The regulatory landscape has shifted in recent months, as most countries have eased their stance on crypto. Many nations and even continents have shifted from outright bans to implementing proper regulations. For instance, Hong Kong is solidifying its position as a major crypto hub in Asia by focusing on crypto-friendly regulations.
In addition to increased adoption, the crypto industry is experiencing steady growth in terms of innovation, with the introduction of new token types and scalability solutions. GlobalData suggests that these factors will contribute to the anticipated growth in global crypto revenue.
Crypto market valued at $1.04 trillion | Source: CryptoTotalMarketCap chart from TradingView
Coinbase and Binance Lead in Mergers and Acquisitions Activity
The 102-page GlobalData report also reveals a decline in mergers and acquisitions (M&A) activity in the cryptocurrency space. As of May 22, only 60 M&A deals have been completed in 2023, representing a 17% drop compared to the same period in 2022.
However, the industry still offers lucrative opportunities for acquirers, as the crypto space is at a “buy the dip” point. Coinbase, Binance, and Kraken are the top three companies leading in M&A deals.
According to GlobalData analysts, merger and acquisition activity in the crypto industry is expected to increase over time, driven by a drop in crypto prices, lower valuations, and liquidity challenges.
Featured image from iStock, chart from TradingView