> For the complete documentation index, see [llms.txt](https://white-paper.koinbay.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://white-paper.koinbay.com/market-analysis/industry-observations.md).

# Industry Observations

### General Statistics on Cryptocurrency Adoption 

Crypto exchanges have experienced dramatic swings in trading activity across the 2021–2023 period. During the 2021 bull cycle, the top 15 centralized exchanges alone recorded an all-time high spot trading volume of $25.21 trillion - a leap of 566.8% from $3.78 trillion in 2020. However, 2022 proved far more turbulent: spot trading volume on the top 10 exchanges stood at $1.5 trillion in January but collapsed to $0.46 trillion by December in the aftermath of the FTX implosion. Recovery followed steadily, with the top 15 exchanges recording $8.05 trillion in 2023, then surging to $18.83 trillion in 2024. By 2025, the picture had shifted even more dramatically: spot trading volume reached $18.6 trillion - a 9% year-on-year increase - while perpetual contract trading volume surged to $61.7 trillion (a 29% year-on-year increase), bringing total exchange volume to approximately $80 trillion for the year.

The crypto industry has witnessed significant institutional milestones across this period. Crypto investors achieved total gains of $159.7 billion in the 2021 bull market, swung to estimated losses of $127.1 billion in 2022, then recovered to $37.6 billion in gains in 2023. Major corporations and investment firms once cautious about the asset class have since committed at scale: investment giants such as BlackRock and Fidelity launched dedicated crypto funds aimed at both retail and institutional investors. As of 2025, 86% of surveyed institutional investors report either having exposure to digital assets or planning allocations. Governments have similarly shifted from hesitation to structured engagement, with the EU's MiCA (Markets in Crypto-Assets) framework entering into force and over 200 Singapore financial institutions actively exploring blockchain and digital assets under MAS oversight, while Hong Kong attracted roughly HK$62 billion (approximately $8 billion) in new virtual asset investments in 2023 alone.

Despite significant fee compression across onboarding, trading, and processing - alongside ongoing promotional incentives from major exchanges - the industry's fundamentals have strengthened considerably. Cryptocurrency transactions increased by 17% in 2023 compared to 2022, and the crypto market generated approximately $303 billion in revenue in 2023, with a further estimated growth of 87% projected from 2023 to 2024. The global crypto user base grew 33% year-on-year in 2024, rising from 420 million to 562 million users worldwide, and is projected to approach 1 billion users by 2028.

### 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 expert-level crypto & FinTech professionals

• Strong compliance

• More than USD 750 million daily 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**

• 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