Global Crypto Adoption To Reach 8% by 2025

Global cryptocurrency adoption is nearing a major milestone, with 7.51% of the world’s population now using digital currencies, according to a report by MatrixPort.

The report forecasts that this figure will surpass 8% by 2025, marking a potential transition of crypto from a niche market into mainstream financial systems.

One of the key drivers of this steady increase in adoption is the growing involvement of institutional investors, which the report highlights as a significant factor.

The rise in institutional interest, cited in the report, has accelerated crypto adoption.

Major financial firms like BlackRock have played a crucial role in fostering trust and legitimacy for digital assets within traditional financial systems.

Markus Thielen, founder of 10x Research, discussed with Cointelegraph how institutional products have contributed to the growth of Bitcoin and the broader crypto market:

“The evolution of Bitcoin has consistently driven price rallies whenever new layers of Bitcoin acquisition were introduced to financial markets [...] The potential introduction of options based on Bitcoin spot ETFs could trigger another wave of institutional interest.”

Bitcoin remains central to overall cryptocurrency adoption and is often viewed as a store of value, especially during periods of economic uncertainty.

Thielen pointed out that economic challenges have historically boosted demand for Bitcoin, such as during the European debt crisis and the devaluation of the Chinese yuan. He further noted:

“[...] rising US debt levels could spark strong demand for Bitcoin if the economy faces a slowdown, whether from a recessionary period or trade wars. This trend positions Bitcoin as a hedge during times of economic uncertainty.”

While the MatrixPort report paints an optimistic picture for future adoption, several challenges persist, including regulatory hurdles, market volatility, and concerns over retail investor security.

Threats like hacks and scams, including wallet drainers, continue to pose risks in the crypto space.

Moreover, large-scale sell-offs by institutional investors could increase market volatility, potentially destabilizing the market during macroeconomic shifts.

Sources:

https://cointelegraph.com/news/global-crypto-adoption-nears-8-percent-milestone-by-2025

https://cointelegraph.com/news/global-crypto-adoption-nears-8-percent-milestone-by-2025