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Cryptocurrency market growth predictions tempered by recent events

The latest publication of the Germany-based market intelligence firm yStats.com, “North America Blockchain and Cryptocurrency Market 2022”, gives an in-depth overview of the cryptocurrency market and the upcoming trends within the North American market. Some key highlights of the report include top reasons identified for investing in crypto within the USA and Canada as well as growth trajectory of the crypto market in these two countries.

Although the cryptocurrency market in North America is evolving backed by regulations, the recent crypto fall has sent shock waves across the region

In the aftermath of the pandemic consumers worldwide warmed up to the idea of cryptocurrency and other virtual assets as online payments had already gained momentum during the pandemic. With the global value of cryptocurrency payments estimated to reach billions of euros by 2022, the cryptocurrency market began evolving gradually across nations, especially in the USA, as spelled out by the new yStats.com report. The number of adults owning and using cryptocurrency in the U.S. was at one time forecasted to double by 2023, with nearly three-quarters of adults having heard of crypto as of July 2022, though recent events have reduced the enthusiasm for the alternative currency. The awareness about cryptocurrency among adults in the U.S., as of 2021 saw a rise of certain percentage points as compared to 2020. Bitcoin remained a popular cryptocurrency among nearly three-quarters of adults, with Ethereum being the second most owned cryptocurrency as of 2021, as mentioned in the new yStats.com report.

Despite the growing popularity of cryptocurrency among U.S. adults, a wide gender gap was evident in terms of men and women who have invested, traded, or used crypto as of July 2022. While close to one-half of men invested, traded, or used crypto, the share of women doing so was a little more than one in ten during the same time period. With the cryptocurrency landscape in the U.S. catching pace gradually, policymakers in the country have already introduced a tight regulatory framework for incorporating crypto in the conventional banking system. U.S. recently saw the launch of legislation, which would offer a far-reaching set of rules and regulations to address issues relating to cryptocurrency. Moreover, the Crypto Regulation Bill passed in the U.S. defines cryptocurrency and coordinates the role of the Security Exchange Commission /SEC). Nevertheless, for more than half of the survey respondents, guidance around holding digital assets and holding digital currencies in bank accounts were the top regulatory priories needed to expand the adoption of digital currencies as of December 2021, as per a survey cited in the latest yStats.com publication.

In spite of the growth of cryptocurrency across the U.S., the crypto crash has had an impact on the funding and investment scenario of the blockchain and the crypto market. Crypto investments declined in H1 2022 as compared to 2021, with investor sentiments witnessing a decline. Furthermore, Ethereum, Bitcoin, and altcoins saw a significant drop in value as of October 2022  compared to 2021. The collapse of the biggest cryptocurrency exchange platform FTX and the bankruptcy of the US-based firm Celsius further sent shock waves across the North American region. With the crypto market being in sync with the stock market, the slowdown of economies and inflation worldwide is estimated to further hamper the growth of the crypto market. While many coins such as Shiba Inu, Ripple, and Cardona are estimated to crash, bitcoin and Ethereum among others are expected to survive.

Other digital assets such as NFTs are gaining popularity among consumers, with business executives also inclining towards digital currencies

With the steady growth of the crypto market in the U.S., the share of adults who have heard about digital assets such as NFTs is also increasing. As of July 2022, close to one-half of U.S. adults indicated having heard about NFTs, according to a survey cited in the new yStats.com report. Additionally, most adults who were aware of NFTs at the time of that survey belonged to the age range of 18-29 years. Before the crypto crash, business executives had been slowly inclining towards digital currencies such as crypto, with most businesses across the U.S. expecting that digital currencies would become an important payment method in the future. Most of the surveyed executives also expected their suppliers to accept payments in both crypto and stable coins as of December 2021. Moreover, nearly half of the organizations in the U.S. had very high priorities when it came to enabling cryptocurrency payments during the same time period.