- Judge Business School of the University of Cambridge’s study strongly hints that the cryptocurrency market has officially entered the growth phase
- The study focuses on all important aspects of the growing cryptocurrency industry even during the covid 19 pandemic
Judge Business School of the University of Cambridge recently released the 3rd Global Cryptoassets Benchmarking Study. Presented by Apolline Blandin, Dr. Gina Pieters, Yue Wu, Thomas Eisermann, Anton Dek, Sean Taylor, Damaris Njoki this new study is aimed to provide a deeper insight to the cryptocurrency market condition as well as dynamics since the year 2018. The entire study is curated by the data from the various surveys conducted on exchange, payments, custody, and mining. In summary, the study strongly hints that the cryptocurrency market has officially entered the growth phase despite major pullbacks in its development since 2018.
Miners are Concerned About Using the Cheapest Source of Energy
The study focuses on all important aspects of the growing cryptocurrency industry even during the covid 19 pandemic. One of the interesting discoveries were that 39% of the electrical energy which is used for Proof of Work mining is renewable and majority of it is hydroelectric energy. This is good news for the cryptocurrency industry because electricity contributes a major part of any hasher’s mining expenditures. Except for some regions, the miners have tried their best to use the cheapest source of energy for their operations.
Stablecoins are Becoming More Popular
Moreover, the total off-chain transaction volumes and numbers from 2018 are still considerably lower to that of fiat currencies. This implies that users tend to use the service providers in order to enter or exit the cryptocurrency space. And most importantly the availability of stablecoins or centralised tokens that are backed by fiat currencies are readily increasing. The growth rate of Tether (USDT) has been gradually increasing over the past few years implying the increasing adoption of the stablecoins. In the last two years, Tether stablecoin grew by almost 4% to 32% compared to 11% to 55% support growth of the other Stablecoins.
Increasing Institutional Adoption in Northern American and European Regions
The share of the cryptocurrency based companies who did not carry out the KYC verifications depreciated by almost 13% between the years 2018 and 2020. This is because complying with KYC/AML standards started by the Financial Action Task Force (FATF) has become a major requirement for crypto focused companies. The institutional investors are increasing day by day as signalled by the European and North American headquarters of some service providers. However, for Latin American service providers the figures are relatively lower (16%).