Blockchain is the distributed ledger technology that enables the immutable and secure transfer of assets.
The Blockchain Research Institute of Africa explains that anything from currencies to land titles to votes can be tokenized, stored, and exchanged on a blockchain network.
“Just as the internet is a technology that facilitates the digital flow of information, blockchain is a technology that facilitates the digital exchange of units of value,” it explains.
The first widespread blockchain was Bitcoin, developed in response to the 2008 financial crisis as a secure, censorship-resistant, peer to peer electronic cash system.
Since then, more blockchains, using a variety of technologies, have been launched.
Some blockchains provide a permanent forensic record of transactions and a single version of the truth – a network state that is fully transparent and displayed in real time for the benefit of all participants.
Non-Fungible Tokens (NFTs) saw a brief flurry of hype, but have now settled into a mainstream technology with importance for the digital economy.
NFTs are tokens that represent a thing of singular value. They can cover a range of unique assets, including documents and the identities of objects on the Internet of Things.
After a 37% plunge in 2022, the global digital assets market, including cryptocurrencies, NFT, and DeFi, soared by an impressive 127% last year and hit $60.1 billion in revenue.
The rebuilt confidence in digital assets is expected to continue driving growth in 2024, with the market reaching more users and generating more revenue than ever.
According to data presented by AltIndex.com, combined crypto, NFT, and Defi revenues are expected to jump by 33% year-over-year and hit more than $80 billion in 2024.
Digital asset ownership continues rising, with more people than ever investing their money in cryptocurrencies, digital tokens, NFTs, and any other type of digital or virtual item that has value and can be bought, sold, or traded like traditional assets.
According to a Statista survey, over 700 million people worldwide used some digital asset last year, with cryptocurrencies like Bitcoin, Ethereum, Tron or XRP as their number one choice. This massive user base has helped the market gross $60,1-billion in revenue, 127% more than in 2022. However, 2024 is on track to set a new record, both in revenue and the number of users.
Although the annual growth rate will significantly drop compared to last year, the revenue in the digital assets market will still increase by an impressive 33% year-over-year and hit over $80-billion in 2024. Nearly half of that value, or $36,8-billion, will come from the United States, the world`s largest digital assets market. Far below, the UK follows with $3,8-billion in revenue.
Statistics show all market segments will see double-digit growth this year, with decentralized finance (DeFi) as the absolute winner. Statista expects global DeFi revenue to jump by an impressive 47,5% year-over-year and hit $26,1-billion, making 32% of the market`s total. This figure is even more impressive when compared to cryptocurrencies, the largest and the highest-grossing segment in the digital assets space.
Cryptos are expected to make 64% of the total market revenue in 2024, or $51,3-billion, but will see only half of DeFi`s growth. NFTs will also see much bigger growth than cryptocurrencies, with revenues jumping by 41,5% year-over-year to $2,4-billion.
Owning several different types of cryptos has become pretty common today. However, the number of users in the DeFi and NFT segment also continues rising. Last year, more than 700-million people worldwide used digital assets, and crypto users made up 95% of that number.
Statista expects the number of users in the digital assets market, including cryptos, DeFi, and NFTs, to jump by 24% and hit over 865-million in 2024. The DeFi segment is expected to gain 2,3-million new users this year, one million more than the NFT market, while more than 160-million people will flock to cryptos. By 2028, the entire market will count more than 1-billion users worldwide.