Blockchain Finance Market to Grow at a CAGR of 60.5% by 2028, According to Allied Market Research
In a recent report by Allied Market Research, it has been revealed that blockchain financial market participants are increasingly exploring collaborations and acquisitions as a core strategy. The traditional finance industry has faced numerous challenges due to the COVID-19 pandemic and, in addition to this, the promise of lower operating costs has increased the global adoption of the digital ecosystem.
Blockchain technology has the potential to revolutionize the blockchain finance market by significantly improving settlement processes and expediting payment transactions. This technology utilizes significant computing power to maintain large distributed ledgers associated with financial transactions, making it ideal for the financial industry. As these advantages become more widely recognized, the development of the blockchain financial market is expected to accelerate.
Among the various sub-segments of blockchain finance, cross-border payments and trade stand out as the largest and most popular. There is a growing demand from individuals, businesses, traders, industries, and international development groups for more efficient and cost-effective methods of transferring funds across borders. Consequently, the trend of adopting blockchain technology in this aspect is expected to continue.
North America currently dominates the blockchain finance market and is projected to maintain its leadership in the adoption of blockchain finance. This can be attributed to the region’s well-established financial infrastructure and features that make it an ideal environment for implementing blockchain technology in the banking sector. These factors are expected to drive revenue growth in the regional blockchain finance industry in the upcoming years.
Analysts at Allied Market Research predict a compound annual growth rate (CAGR) of 60.5% for the blockchain finance market, resulting in a market size of $79.3 billion by 2028. This significant growth indicates a strong positive outlook for the industry and underscores the potential of blockchain technology in transforming the financial landscape.
Interestingly, the Bank of America (BofA) recently argued that decentralized finance (defi) is the real disruptor of traditional finance, rather than Bitcoin (BTC). Despite Bitcoin’s market capitalization of over $1 trillion, the digital currency still has flaws that limit its potential to truly revolutionize the traditional financial ecosystem. This perspective highlights the importance of looking beyond just cryptocurrencies and focusing on the broader potential of blockchain technology in the financial industry.
The future of the blockchain finance market appears promising, with increasing collaborations and acquisitions being pursued by market participants. As the advantages and potential of blockchain technology become more widely recognized, the industry is set to grow at an impressive rate. With North America leading the way in adoption and continued demand for more efficient cross-border payments and trade, the blockchain finance market is poised for significant expansion in the coming years.
