The pace of cryptocurrency adoption is expected to reach 8% by 2025 due to interest from financial institutions and economic uncertainty, according to a new report from MatrixPort. Cryptocurrencies are gaining momentum around the world, with more countries loosening restrictions on buying and selling digital assets. According to the latest data from MatrixPort, 7.51% of the world’s population currently uses digital currencies.
The report highlights that the influence of institutional involvement is increasing and that this is a key factor driving the steady increase in adoption. The report cites increasing interest from institutional investors as one of the key factors for the growth of cryptocurrencies. Leading the way is Bitcoin, which is set to skyrocket in price in 2024 and has become a major financial topic at corporate and federal levels.
Big banks and asset management institutions such as BlackRock are increasing their investments in Bitcoin and other assets. Following the launch of Bitcoin and Ethereum ETFs, the future of cryptocurrencies looks very bright. Additionally, this implementation is critical to building trust and legitimacy for digital assets within the traditional financial system.
Despite the optimistic forecasts highlighted in the MatrixPort report, several hurdles remain in front of the 8% figure. There is still debate at the regulatory level about how cryptocurrencies should be utilized, and the SEC is in a heated battle with the digital asset industry. The legal battle between regulators and Ripple Labs and XRP continues after an appeal of a recent ruling. Additionally, various crypto bills are being debated in Congress that either support or oppose tighter regulation of the industry.
Also read: Bitcoin: Experts say Bitcoin could reach new all-time highs by Halloween
Furthermore, the cryptocurrency industry is still inhabited by hackers and scammers, creating fear in potential investors. This may also prevent people from viewing the crypto industry as a safe investment. Institutional investors may also exacerbate market volatility. Large-scale sales during macroeconomic changes can destabilize markets. With public attention focused on cryptocurrencies, the industry is hotter than ever. Therefore, it is very likely that the adoption of cryptocurrencies around the world, especially in the United States, will further expand by 2025.
