In the next five years the global blockchain market’s value is expected to jump from $3bn to $39.7bn at a compound annual growth rate of 67.3%, according to new research.
The report from MarketsandMarket highlighted that several forces drive the growth of the sector, including increasing venture capital funding and investments in the blockchain technology, growing popularity of the blockchain technology in retail and supply chain management, and growing focus on reducing operational cost.
Unsurprisingly, the researchers believed that the number of startups in the sector is also going to grow between 2020 and 2025.
The sentiment about VC funding comes after FinTech Global’s research showed that blockchain and cryptocurrency companies have collectively raised over $14.2bn in global investment across 641 transactions since 2015. Although, it should be noted that there was a major slowdown in 2019, which coincided with a period when major digital currencies traded way below their historical peaks.
The researchers also expected that North America will continue to be the leader in the sector due to increasing funding on the development of distributed ledger technologies to provide customers with transparency and faster transactions.
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