U.S. Crypto Sector to Expand to $32.9 Billion by 2028

The U.S. cryptocurrency market is anticipated to project US$32.9 billion by 2028
U.S. Crypto Sector to Expand to $32.9 Billion by 2028

Cryptocurrency is booming rapidly. New analyses and studies on this sector are published every day. Similarly, FinSMEs publication recently issued an article on the U.S. cryptocurrency market, which is anticipated to substantially grow to US$32.9 billion by 2028, which proclaims optimistic anticipation. This is due to the growing adoption and usage of cryptocurrencies among consumers and investors, the development signifies an increase of 9.10% annually in forthcoming years.

The U.S. is just part of a global movement: the global digital currency crypto market is forecasted to reach US$51.53 billion in 2024 and rise by 8.62% compound annual growth rate (CAGR) to a projected overall value of $71.72 billion in 2028. There are various reasons behind such a surge, the prominent among them being the appearance of distributed ledger technology, the deluge of digital venture capital investments, and the adoption of cryptocurrencies as a mode of financial transaction in developing economies.

The market is also proliferating because of the inclusion of blockchain technology, which ensures a safe, quick, transparent, decentralized, and reliable way of transactions. Besides having a stake in various cryptocurrencies, companies are entering into collaborations with each other to give consumers efficient and quality services.

Digital investments inflow into venture capital, the increase in blockchain technology, and the adopting of cryptocurrencies as a financial exchange medium by developing nations, all these factors are responsible for the growth of cryptocurrencies. As, blockchain technology integration renowned for being transparent, decentralized, safe, and reliable in transactions—is triggering the expansion of the crypto market.

Moreover, key to support these commercial functions and innovations are strategic partnerships between corporates and technological innovations. For example, in the year 2018, Qtum Chain Foundation had collaborated with Amazon Web Services (AWS) China, with an objective to enable AWS users to efficiently, and with ease, develop and release smart contracts. Such activities are expected to grow, further boosting the growth of the market.

The same applies to the regulatory environment in the U.S., as it is becoming more accustomed to the expanding world of crypto. The active involvement of the government in developing and regulating cryptocurrencies, like the ruling of the Internal Revenue Service in 2014 that Bitcoin is taxable as property, and the 2022 framework that gave regulatory powers to the Securities and Exchange Commission and Commodity Futures Trading Commission, has provided a clearer legal framework for the industry.

Still, outlook of the crypto space fundamentals says, there exist challenges like market volatility, scrutinization from regulators, and issues of security. Regulators' ongoing struggle with the cryptocurrency industry is a reflection that the U.S. is a never-ending journey of evolution, irrespective of the frameworks being implemented.

Another important factor contributing to the growth of the crypto sector is user adoption. As of previous statistics (recorded in 2023), it is argued that over fifteen percent of the U.S. users have their savings in digital currency, implying that a majority of the American population is participating in the multibillion-dollar industry. The more the benefits of adopting cryptocurrencies over traditional financial methods become known by users, the higher the rate of adoption will be.

Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.

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