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BCG, Bitget, and Foresight Ventures report says real crypto expansion is coming

A joint report by Boston Consulting Group (BCG), Bitget, and Foresight Ventures showed that crypto is at its very early stages of adoption and will expand more, especially in Latin America (LatAm) and the Asia Pacific (APAC) regions.

The report titled “What Does the Future Hold for Crypto Exchanges?” examines the growth trajectory of cyrpto adoption and regions with the highest adoption potential. According to the authors, the global crypto trading market cap reached $54 trillion in 2021, with significant potential to grow further.

Crypto is here to stay

The analysis argues that crypto adoption is still at its very early stages. BCG estimates that around 0.3% of individual wealth is held as a crypto asset, as opposed to 25% preserved as equities and stocks. The gap in between presents significant room for growth.

Adoption estimation chart from the report

The report considers the adoption rate of the internet in the 90s, takes the number of crypto holders as a proxy for Web3 users, and concludes that the actual adoption surge is yet to come:

“…if the trendline of crypto adoption continues, the total number of crypto users is likely to reach 1 billion by 2030.”

Another study by Blockware also reached the same conclusion regarding the upcoming surge in adoption.

Instituitonal adoption

The authors also conclude that the institutional interest in crypto is growing, with Venture Capitals and Hedge Funds most interested.

As institutional players doubled their investments to $70 billion last year, the report also states that the “actual crypto holdings will be several times higher following token appreciation since the investments.”

One of the significant reasons for institutional interest in crypto is Bitcoin‘s high performance as an inflation hedge. The report says that the S&P returned 29% in 2021, compared to 62% from Bitcoin.

LatAm and APAC

The report points to LatAm and advanced APAC economies as regions with the most tremendous potential for crypto growth.

In 2021, emerging economies and advanced APAC countries had accounted for one-third of global spot…

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