Cryptocurrencies & Digital Assets

20+ Exciting Crypto Stats for Institutional and Retail Investors

19.03.2024

BSD Blog Header Krypto Factsheet (1)

 

The crypto market is constantly changing, the news about the use of cryptocurrencies, Bitcoin and other digital assets is becoming more and more frequent. But what about the size of the market, how many institutional investors are involved, and how many jobs does the crypto ecosystem create? Let’s take a look at selected statistics, figures, and studies. 

The crypto market at a glance 

The dynamics of the crypto market are clearly reflected, among other things, in the trading volumes and market capitalizations of the individual coins and projects. In November 2021, the trading volume in the cryptocurrency market peaked at $3 trillion. Only two years later, the global market capitalization made its way back into these spheres in March 2024 with around 2.6 trillion US dollars. 

Bitcoin accounts for almost 50 percent of the total value of the market. Its peak of $69,044.77 also dates back to November 2021, and currently (early March 2024), the coin's value is only marginally lower. 

The crypto market is more than just Bitcoin or well-known altcoins such as Ethereum and Litecoin. The number of cryptocurrencies available worldwide exceeds 9,000, highlighting the growing diversity and increased interest in crypto assets. 

Significant growth is also forecast for the future. By 2030, the research institute Grand View Research expects the global market to grow by 12.5 percent annually – so it will remain dynamic. The figures show how crypto assets are becoming more and more widespread and are also becoming more and more popular with the masses. 

Southeast Asia, in particular, is heavily invested 

However, the acceptance of cryptocurrencies shows considerable regional differences worldwide. For example, Bitcoin is recognized as an official means of payment in El Salvador, and in many cities around the world there are "Bitcoin ATMs", i.e. ATMs where you can exchange crypto and fiat currencies. 

A look down under: In Australia, about 25.6 percent of the population owned cryptocurrencies in 2022, Bitcoin was the most widely used coin at the time and unsurprisingly still is. A 2023 study by the Australian Securities Exchange (ASX) found that 29 percent of Australian crypto investors plan to buy cryptocurrencies within the next twelve months. Young investors between the ages of 18 and 24 in particular showed a high level of interest at 31 percent. The median investment amount was 5,100 Australian dollars, which is roughly equivalent to 3,360 US dollars and 3,100 euros. 

What is true in Australia is also evident in other parts of the world: especially younger people  are invested in crypto. For example, a Forbes survey in the United Kingdom (UK) found that young investors aged 18 to 34 are twice as likely to own cryptocurrencies as those aged 35 to 54. 

However, both countries are far from being among the nations that are home to the most crypto owners in absolute terms. This includes the Southeast Asian region in the lead, as the ranking shows: 

  • India – 93 million – 6 percent of the population 
  • China – 59 million – 4 percent 
  • U.S. – 48 million – 16 percent 
  • Vietnam – 20 million – 21 percent 
  • Pakistan – 15 million – 7 percent 

Distributed across the continents, the ranking is as follows: 

  • Asia – 263 million 
  • North America – 57 million 
  • Africa – 38 million 
  • South America – 33 million 
  • Europe – 31 million 
  • Oceania – 1 million 

Worldwide, the availability of over 40,000 crypto ATMs makes it easier to access and use cryptocurrencies – even though they are still banned in over 20 percent of countries. 

Crypto Leaves the Niche: More and More Educational Opportunities 

When technologies such as blockchain and markets such as the crypto ecosystem grow so much and gain attention, it is normal that more and more educational opportunities for this system are emerging. 

Germany, for example, plays a leading role in the field of education and the job market for cryptocurrencies and blockchain. With over 22,400 jobs in the crypto & blockchain sector, Germany led the world in the fourth quarter of 2022, ahead of the USA. This underlines the importance of the sector for the economy and the labor market. 

Major international universities and colleges now offer degree programs in the field of crypto and blockchain. These include, among others, worldwide and in Germany

  • Harvard University 
  • Stanford University 
  • EU Business School 
  • University of Oxford 
  • University of Geneva 
  • University of Zurich 
  • Technical University of Berlin 
  • Mittweida University of Applied Sciences 
  • Frankfurt School of Finance 
  • University of Bayreuth 
  • Technical University of Munich 

The industry is becoming more sustainable 

A focus of the courses is certainly the question of sustainability, which is constantly present in the crypto ecosystem. The environmental sustainability of cryptocurrencies, especially Bitcoin mining, is a controversial topic. 

The energy consumption for global Bitcoin mining is equivalent to 0.16 percent of global energy production and contributes 0.1 percent to global CO₂ production. However, 60 percent of the energy required for mining comes from sustainable sources

Innovative approaches to energy efficiency, such as the portability and flexibility of mining rigs to minimize cooling requirements and the possibility of carbon-positive mining, show that more environmentally sustainable operations are possible. In addition, the proof-of-stake consensus mechanism, as used by Ethereum for smart contracts since the update on September 15, 2022, consumes 99 percent less energy than traditional proof-of-work systems. 

These developments prove that the crypto industry is increasingly looking for and implementing sustainable solutions. A comparison with banking is also interesting in this context. For example, Bitcoin consumes only two percent of the energy of traditional banking

CBDCs: Digital currencies in focus 

In order to play a role in the modern capital market of the future, the traditional banking system mentioned above will have to open up sooner or later. One aspect in this context is Central Bank Digital Currencies (CBDCs). The research and development of these digital currencies is gaining momentum worldwide. 

A 2021 survey by the Bank for International Settlements (BIS) shows that 86 percent of central banks are actively exploring the potential of CBDCs, 60 percent are already experimenting with the technology, and 14 percent are piloting them. In total, 130 countries, representing over 98 percent of the world's GDP, are exploring the adoption of CBDCs. 

Eleven countries have already fully adopted a digital currency. China's ambitious pilot project is already reaching at least 260 million people, Jamaica recently launched its CBDC, the JAM-DEX, the Bahamas has had a CBCD (Sand Dollar) since October 2020 – and so on. Over 20 countries, including Australia, Thailand, Brazil, India, South Korea, and Russia, have continued, or started pilots in 2023. The European Central Bank (ECB) is also launching a project on the digital euro, which is currently in a two-year preparatory phase and is not scheduled to be launched until 2026 at the earliest. With all G7 countries entering the development phase of a CBDC and 19 of the G20 countries at an advanced stage of CBDC development, a new chapter in the digital currency landscape is emerging. 

Institutional investors are taking notice 

Parallel to the pleasing developments at the state level, there is also an increasing interest on the part of institutional investors in cryptocurrencies, crypto projects, and structural partners such as Boerse Stuttgart Digital, which significantly facilitate access to crypto assets for banks, funds, family offices and the like. 

Investments in cryptocurrencies and blockchain technology have been pointing in one direction for years. Globally, venture capital, private equity and M&A investments in this sector totaled $32 billion between 2018 and 2022. 

In 2022, digital assets saw $433 million in inflows from institutional investors. However, this number fluctuates greatly from year to year – in 2018 the number was significantly lower, 2021 was a record year with an inflow of 9.1 billion US dollars. 

The development of institutional investors in relation to private investors is particularly exciting. A study from 2023 predicted that institutional investors will have replaced private investors as the main holders of digital assets over the course of last year – whether this really happened cannot be verified (yet). 

In the same survey, 70 percent of professional investors surveyed believe that within seven years, more than 70 percent of digital assets will be held by institutions, which would represent a significant reversal of the current ratio (3:97) of institutional to private investors. 

Today, there are already many companies that invest specifically in the crypto sector and pass this on to their customers. Some examples: 

  • MasterCard and Visa partner with payment providers that enable crypto payments 
  • Meta partners with Polygon for new Instagram NFT 
  • Amazon integrates Avalanche with AWS 

If, like the above-mentioned organizations, you are looking for an infrastructure provider that offers fully regulated solutions along the entire value chain of crypto and digital assets, Boerse Stuttgart Digital is your trusted partner. 


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