The global blockchain finance market is set to become a $79.3 billion industry by 2032, according to a report by Allied Market Research. The report highlights that players in the blockchain finance market are actively seeking collaborations and acquisitions as a top strategy. The disruptions caused by the COVID-19 pandemic in traditional finance have created an opportunity for the mainstream adoption of digital ecosystems, driven by the promise of reducing operational costs.
The report reveals that the public blockchain sub-segment currently dominates the market, with Bitcoin (BTC) and Ether (ETH) being prominent crypto ecosystems using public blockchains. Public blockchains offer significant computational power, making them ideal for maintaining large distributed ledgers associated with financial transactions. This factor is expected to drive the growth of the blockchain finance market.
Cross-border payments and trading are major applications of blockchain finance. The rising demand from individuals, enterprises, merchants, industries, and international development groups is driving the growth of these sub-segments. As users continue to seek cheaper alternatives for moving their savings across the world, this trend is expected to continue.
North America currently leads the blockchain finance market, and it is expected to maintain its dominance in the adoption of blockchain finance. The report predicts a compound annual growth rate (CAGR) of 60.5% for the blockchain finance industry, leading to its projected market size of $79.3 billion.
Another report by Ripple, the digital payments network, suggests that blockchain has the potential to save financial institutions approximately $10 billion in cross-border payment costs by 2030. The report states that global payment leaders are dissatisfied with legacy rails for cross-border payments and see crypto as a transformative solution for moving money. This aligns with the findings of Allied Market Research, which highlights the benefits of cheaper and safer alternatives as driving factors for the growth of the blockchain finance market.
In conclusion, the blockchain finance market is expected to experience significant growth in the coming years, driven by the exploration of collaborations and acquisitions by market players. The disruptions caused by the COVID-19 pandemic and the potential for reducing operational costs have paved the way for the mainstream adoption of digital ecosystems. With the dominance of public blockchains and the increasing demand for cross-border payments and trading, the market is poised to become a $79.3 billion industry by 2032.