The global demand for the crypto trading platforms is expected to rise 14% per year to USD 36.5 billion by 2022, supported by
| Attribute | Key Statistics |
|---|---|
| Global Crypto Trading Platform Market Estimated Size (2022E) | USD 36.5 billion |
| Projected Market Valuation (2032F) | USD 135.7 billion |
| Value-based CAGR (2022 to 2032) | 14.0% |
| Collective Value Share: Top 5 Vendor | 45% |
Since crypto trading platforms operate via the internet, the ambiguity surrounding them is higher, which may restrict global market expansion if users fail to generate confidence in these platforms.
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If crypto trading platforms prove their authenticity among the population, they may see more growth opportunities. Providing backing from well-established firms will enable users to know that their money is in safe hands. In 2021, Tesla's revenue increased by 12% in one day following Elon Musk's online statement about bitcoin. Ether and other companies followed suit, and their revenues increased by 7%. For the global market cap, such backing may create greater growth opportunities.
Digital Money Creates Challenges for Market Growth Due to Security Concerns:
Due to cybersecurity concerns related to crypto trading platforms, the global crypto market is expected to face challenges during its growth trend. Malware, user confusion, illegal trading platforms, non-regulated cryptocurrency, phishing attacks, and third-party software are just a few of the threats.
Because these platforms handle larger sums of money, they are prone to various attacks, and some platforms have not received legal status. If digital currency platforms do not upgrade their security systems on time and eliminate any risk of malfunction, the market may suffer losses.
Since many key players are located in the USA, Kraken, Coinbase, etc., the global crypto trading platforms market has been led by North America over the last few years. As a result of the presence of leading organizations in this region, regional growth is predicted. According to Coinbase, it had more than 56 million active users and generated USD 335 billion in trading value in the first quarter of 2021. Another contributing factor to the growth of regional market share is the extensive awareness of digital currencies and their trading platforms.
The adoption rate of cryptocurrency is expected to be higher in Europe, led by Germany. Faster transactions, safer transactions, and minimal ownership costs are some of the characteristics of digital money platforms that support regional growth. As reported in Gemini's 2022 report on the state of crypto, around 53% of Germans accept having crypto-based assets, while 43% of high-income groups do.
It was announced in July 2021 that Visa is partnering with 50 cryptocurrency companies to provide its clients with the ability to convert and spend cryptocurrency. Regardless of whether a merchant accepts crypto or not, users can now purchase goods from Visa merchants. Cryptocurrencies are expected to be more accessible as a result of the move.
The crypto trading platform market accounted for nearly 35% of the global cryptocurrency market share. Cryptocurrency exchanges are platforms that allow users to trade cryptocurrencies for various assets such as digital and fiat currencies. In short, a crypto trading platform functions as an intermediary between a buyer and a seller, earning money through commissions and transaction fees.
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Growing number of cryptocurrency users across the globe is projected to have a significant impact on the industry. According to a cryptocurrency trading platform provider named Crypto.com, the global cryptocurrency ownership is approaching 300 million, which is expected to surpass 1 billion by the end of 2022.
It can be linked to the increasing use of DeFi (decentralized finance), rising number of crypto exchange providers, and rapid acceptance of cryptocurrency by various financial institutions. Morgan Stanley, for instance, began selling bitcoin funds to its wealth management customers in March 2021. This further helped the organization to strengthen its offerings and improve client experience.
Although bitcoin is the most well-known cryptocurrency, there are many more, including Ethereum, Tether, USD coin, BNB, Binance, and Dogecoin. The finest aspect of crypto trading platforms is that they allow traders to control their currencies and trade accordingly.
Transactions are mainly based on the blockchain technology, which provides users with unmatched security. It does not correlate the information with bank accounts and stores it on a secure site, thereby providing customers with a sense of relief.
Unlike traditional trading markets that operate on a set schedule, crypto trading markets are open 24 hours a day and seven days a week. Another crucial factor to trade in cryptocurrencies is that they are not centralized. The market has no centralized control, thereby allowing for direct transactions between peer-to-peer crypto trading all over the world.
The crypto trading platform market showcased a CAGR of 10.7% during the historic period (2017 to 2021). The field of cryptocurrency is still exhibiting several security and scalability issues with the emergence of new technologies, which is further resulting in losses of hundreds of millions of dollars among traders.
Various financial institutions are collaborating with cryptocurrency companies to expand their services and improve client experiences. In July 2021, for instance, Visa announced a collaboration with more than 50 cryptocurrency start-ups, including Coinbase and FTX.
As a result of the collaboration, Visa's card program now allows users to spend and convert digital currencies. Similarly, PNC Bank announced its partnership with Coinbase, a reputed cryptocurrency platform provider, in August 2021. Through this collaboration, PNC bank will be able to broaden its investment portfolio for customers preferring crypto assets.
Thus, spurred by consistent advancements in the field of cryptocurrency, the crypto trading platform market is projected to exhibit a CAGR of 14.0% in the upcoming decade (2022 to 2032).
Volatility is one of the key factors impacting the crypto market negatively. It refers to unanticipated changes in market sentiment that can cause large and rapid price moves.
Besides, speed of transaction is another vital factor that cryptocurrencies cannot compete with on the same level as MasterCard and Visa. Until the infrastructure providing these technologies are massively scaled, cryptocurrency traders may face issues with speed.
According to Group-IB, a Singapore-based software company, the number of cyber-attacks on bitcoin services increased by 700% in 2018 and beyond. Cyber assaults or ransomware attacks are complicated and fast-moving risks in the crypto environment, with new users frequently becoming targets. Driven by the aforementioned limitations, demand for crypto trading platforms may decline in the forthcoming years.
Increasing Demand for Bitcoin to Push Sales in South Africa
Many people in South Africa are gradually but steadily embracing digital currencies. According to TripleA, a Singapore-based safe crypto payment gateway, approximately 4.2 million South Africans or 7.1 percent of the entire population, presently own bitcoin. With a few local and international shops beginning to accept cryptocurrency payments, more people are keen to buy or trade cryptocurrencies.
However, as cryptocurrency is neither issued or regulated by a central regulatory authority in South Africa, it is not regarded as a legal currency in the country. But, ongoing acceptance of cryptocurrency among the young population is projected to drive the crypto trading platform market in South Africa.
Cryptocurrency Start-ups Are Launching Mobile App-based Trading Platforms
India is gradually becoming a new powerhouse for cryptocurrencies that is set to fuel expansion of the crypto trading platform market. In addition to metro areas, use of crypto has increased across the country’s tier-2 and tier-3 cities.
India is anticipated to exhibit a broader acceptance of these digital currencies in the next decade. Despite the fact that the government is yet to provide regulatory clarity on the status of these digital currencies, the cryptocurrency sector is expanding at a rapid pace.
Presence of a large number of companies such as WazirX, CoinDCX, and CoinSwitch Kuber providing mobile application-based crypto trading platforms is expected to augment the India market. These apps are intended to make crypto trading simpler and create awareness among users by providing them with knowledge, tools, and assistance they need to become a better trader.
Such app-based platforms offer consumers a flawless trading interface, as well as instructional content on cryptocurrency trading. Surging adoption of mobile applications across India is set to foster growth in the crypto trading platform market.
Government Agencies to Encourage Use of Cryptocurrency Platforms
Brazil is considered to be sixth in the world in terms of bitcoin ownership. Over 10 million people or 4.9 percent of Brazil's total population are estimated to own bitcoin in Brazil.
The Brazilian Senate took the first step toward regulating the country's cryptocurrency sector in February 2022, when its Economic Affairs Committee approved a measure establishing regulations for digital currency funds. Such initiatives taken by regulatory bodies are expected to create new growth opportunities for crypto trading platforms in Brazil.
Launch of Novel Mobile Crypto Exchange Apps to Drive Growth
Mobile cryptocurrency exchange applications provide users with rapid access to the market's numerous currencies and allow them to trade on the move. These applications facilitate users’ desire to trade in cryptocurrency and explore the realm of decentralized digital currency networks. Key companies have streamlined the entire sign-up procedure to enhance user experience.
Increasing adoption of smartphones and rising launch of new mobile apps are projected to fuel the expansion of mobile-based crypto trading platforms. Even though governments of various countries have not yet presented the legality of cryptocurrencies, some of them have opened the space for businesses to introduce their ventures.
Similar initiatives and programs by higher authorities have led to the launch of unique mobile crypto trading apps that enable traders to invest in cryptos such as Dogecoin, Bitcoin, and Ethereum by using their smartphones instead of their laptops.
Traders to Invest in Ethereum Incorporated with Blockchain Technology
Though bitcoin is a decentralized currency, it does have certain limitations. Investments in bitcoin are not regulated. Bitcoin transactions do not include legal protection, unlike a currency that is regulated by a central bank. Bitcoin is also not reversible and thus is prone to scams across the globe.
However, Ethereum is considered to be much more a currency. It is based on the blockchain technology that is programmable. Ethereum servers are not usually hosted by a single party and thus provide zero downtime. It also eliminates the requirement of temporary shutdowns as it does not go through a server maintenance or upgrade.
Key players in the global crypto trading platform industry are focusing on expanding their product portfolios to fulfill the high consumer demand. Furthermore, numerous other companies are introducing new services and features in order to develop their own distinct feature-rich solutions to better serve customers.
Various corporations are also acquiring and collaborating with start-up firms to gain a competitive edge in the global market. At the same time, they are aiming to raise funds from reputed investors to accelerate their businesses.
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 36.5 billion |
| Projected Market Valuation (2032) | USD 135.7 billion |
| Value-based CAGR (2022 to 2032) | 14.0% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Germany, UK, France, Italy, Spain, BENELUX, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, and South Africa |
| Key Segments Covered | Platform, Cryptocurrency, and Region |
| Key Companies Profiled | Binance; FTX; Coinbase Exchange; Kraken; Kucoin; Crypto.com; Gemini; Gate.io; Huobi Global; BitMart; WazirX; CoinDCX; ZebPay; Upbit |
| Report Coverage | Market forecast, company share analysis, competition intelligence, DROT analysis, market dynamics and challenges, and strategic growth initiatives |
The global crypto trading platform market size was valued at USD 32.1 Billion in 2021.
Increasing acceptance of cryptocurrency around the world is driving the demand for crypto trading platforms.
From 2017 to 2021, the global crypto trading platform market exhibited a CAGR of 10.7%.
The global crypto trading platform market is projected to exhibit 14.0% CAGR and surpass USD 135.7 Billion by 2032.
Binance, Coinbase, Huobi Global, Crypto.com, and FTX are the top 5 providers of crypto trading platforms, accounting for around 45% of market share.
India, Indonesia, Australia, and New Zealand together held around 65.7% of the South Asia & Pacific market share in 2021.
India, the USA, China, Singapore, and South Korea are the top 5 countries driving demand for crypto trading platforms.
The USA, India, and China are key providers of crypto trading platforms.
The Japan crypto trading platform market is expected to create an absolute $ opportunity of USD 864.9 Million between 2022 and 2032.
Demand for crypto trading platforms grew at a rate of about 13.9% during 2021 to 2022.
The mobile crypto trading platform app segment is estimated to dominate the market and reach USD 87.2 Billion between 2022 and 2032.
Increasing number of cryptocurrency users and surging use of decentralized finance (DeFi) worldwide are the key trends in the crypto trading platform industry.
| Market Size (2023) | USD 16266.1 million |
|---|---|
| Market Size (2033) | USD 1,10,624.4 million |
| Market CAGR (2023 to 2033) | 21.1% |
| Expected Market Value (2022) | USD 14,520.1 Million |
|---|---|
| Expected Market Value (2032) | USD 39,715.3 Million |
| Projected Growth Rate (2022 to 2032) | 10.6% CAGR |
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