PUBLISHER: The Business Research Company | PRODUCT CODE: 1643987
PUBLISHER: The Business Research Company | PRODUCT CODE: 1643987
Cryptocurrency exchange platforms facilitate the buying, selling and trading of digital assets, known as cryptocurrencies. These platforms serve as digital marketplaces where individuals and institutions can exchange cryptocurrencies either for fiat currencies, such as the US dollar or the euro, or for other cryptocurrencies.
The cryptocurrency exchange platform market consists of sales, by entities (organizations, sole traders or partnerships), of products and services that facilitate the trading of cryptocurrencies for other assets, including fiat currencies and other digital currencies. These platforms act as intermediaries, allowing users to buy, sell and exchange various cryptocurrencies
The global cryptocurrency exchange platform market was valued at $14,925.41 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 18.00%.
Growing Popularity Of Digital Assets
The growing popularity of digital assets supported the growth of cryptocurrency exchange platforms. As more people became aware of and interested in cryptocurrencies like Bitcoin and Ethereum, the demand for platforms that facilitated buying, selling and trading digital assets increased. This surge in interest led to a rise in new users, which, in turn, drove higher trading volumes and attracted institutional investors. The expanding mainstream acceptance of digital currencies also encouraged exchange platforms to enhance their features, improve security and offer a wider range of digital assets, further fuelling the sector's growth. For example, in May 2024, South Korea's Financial Services Commission survey highlighted significant growth in South Korea's virtual asset market during the second half of 2023, showing that 12% of the population, or 6.45 million people, were engaged in crypto trading. However, small investors held an average of only $734 in cryptocurrencies. Further, in November 2022, the Russian government announced plans to establish a national cryptocurrency exchange as part of a broader strategy to regulate the digital asset market. The initiative aimed to create a legal framework for cryptocurrency trading within the country, with a focus on promoting domestic transactions and reducing dependence on foreign platforms. This move came amid growing global interest in cryptocurrencies and was seen as a step toward integrating digital assets into Russia's financial system. The exchange would operate under government supervision, with the goal of ensuring transparency, security and compliance with Russian laws. Additionally, the government highlighted its interest in utilizing blockchain technology for various sectors, including finance and logistics. Thus, the growing popularity of digital assets supported the growth of the cryptocurrency exchange platforms market.
Transition To Decentralized Exchanges (DEXs) For Enhanced Security, Transparency And Asset Control
Major companies in the cryptocurrency exchange platform market are focusing on decentralized exchanges (DEXs) allowing users to trade directly with one another, without the need for intermediaries like centralized exchanges (CEXs). This decentralized model enhances security, as users retain control of their private keys and funds throughout the trading process. DEXs also promote transparency, as transactions are recorded on the blockchain, making them immutable and traceable. Additionally, DEXs support a broader range of cryptocurrencies, including lesser-known or newly launched tokens, offering users more options and greater liquidity. For example, in November 2024, WazirX, an Indian crypto exchange and Kroll, a US-based financial and risk advisory firm, announced the launch of a decentralized exchange (DEX) as well as a new crypto token in order to deliver some recoveries to investors. Decentralized exchanges allow users to control the custody of their crypto assets. However, they are more lenient with Know-Your-Customer (KYC) protocols, so users have to carry out their due diligence to make sure they are not violating their national or international laws.
The global cryptocurrency exchange platform market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 77.63% of the total market in 2023.
Cryptocurrency Exchange Platform Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global cryptocurrency exchange platforms market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for cryptocurrency exchange platforms? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The cryptocurrency exchange platforms market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider cryptocurrency exchange platforms market; and compares it with other markets.