Crypto currency markets are poised to reach a record $300bn in 2021 as the market is expected to continue to grow, according to a new report by the research firm CB Insights.
The report, which is based on CB Insight’s “Blockchain Nation” report, also predicts a further rise in the size of the crypto market over the coming years.
The total crypto market cap, which CB Insiders calculated at $1.2 trillion in 2021, is likely to exceed $2 trillion by 2022, according the report, noting that this is up from $1 trillion in 2020.
However, the report also notes that while this growth is expected, the number of participants in the crypto ecosystem is likely going to continue growing.CNBC’s Brian Kelly reports.
Bloomberg.comThe growth of the digital currency space is expected “to be particularly strong in 2021 and beyond”, the report says.
The market is “now positioned to be a $30 trillion (US) global marketplace with $100 billion in market cap”, the firm says, noting the cryptocurrency market cap is expected at $350 billion.
The growth is largely driven by China, which has seen its cryptocurrency market soar by 50% in the past year alone, according CB Insorts.
China, which launched its first crypto currency, BTCC, on November 3, is expected by the end of 2021 to have a market cap of $400 billion.
China has also seen a steady growth of Bitcoin and Ethereum, the firm’s report says, which both saw significant price rises in the weeks leading up to the launch of the two cryptocurrencies.