Industry Observations

General Statistics on Cryptocurrency Adoption 2021 to 2023

In general, crypto exchanges have seen a massive increase in trading volume, totalling around $ 34.6 trillion between 2021 and 2023 alone (Coinmarketcap as on December 2023)., with expected annual trading volumes in 2024 to be $13.2 trillion and $20.5 trillion in 2025 (TradingView as on December 2023).

The crypto industry has witnessed significant milestones, as it surpassed the combined revenue of the NYSE and Nasdaq much ahead in 2022 itself while the world witnessed major corporations and investment firms, earlier showing apprehension but now allocating resources to cryptocurrency while certain governments earlier having a conservative approach towards - now setting up regulatory frameworks and pilot programs to signal their willingness to engage with credible projects and use-cases in the industry.

Despite the endeavor of most crypto exchanges reducing fees in onboarding, trading, and processing alongwith promotional giveaways - there has been a 5% increase in crypto revenue in 2022 compared to 2021 (Chainalysis).

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SWOT Analysis

Strengths

• Integration of SEPA, IBAN, PIX, and similar regional banking and payment methods - giving friendly on-ramp experiences

• Reputation for being easy-to-use with a simple interface

• Translated experience for friendly user experience to different regional users to get familiar with cryptocurrency trading

• Enacted with strong AML/KYC procedures

• Team of 300 expert-level crypto & FinTech professionals

• Strong compliance

• 60,000+ ready user base amassing USD 85 million monthly volume

Weakness

• Parallel (rather than sequential) feature launches under tight time-frame keeps many new features in the beta stages until tested and mature

• Dependence from liquidity providers

• Volatility of valuation and utility of new and well-known cryptocurrency pairs which also impact general trading behavior on other trading pairs of exchanges

Opportunities

• Potential for partnerships and projects involving the widespread reputation of NFT and Metaverse

• Blockchain integration with other more real-life cases, global industries like Health, Travel, Finance, etc.

• Key issue of mass crypto adoption—a huge market for user conversion to crypto

• Promoting crypto literacy and user education can expand the user base

• New features, trading pairs, and services which expand offerings to attract and retain users

Threats

• Habitual use of, and excessive dependency on traditional financial instruments and methods despite disadvantages, vulnerabilities and expensive processing fees

• Persistent attempts of hackers to exploit vulnerabilities on public blockchain infrastructure around wallet smart contracts.

• Government restrictions on crypto usage, high tax on crypto revenue - further differing between regions

• Fiat currency interest rate spikes prompt user exploitation through buying, selling, trading, and other financial practices, impacting crypto valuations and market conditions

• Human errors compromise user experience

• High cryptocurrency volatility

• Opposition of traditional finance to crypto service providers and end-users