Research predicts high crypto payment growth rates over next few years

The number of crypto owners in the US will surpass 30 million this year, according to Insider Intelligence.

Meanwhile, total transaction value globally will soar 70% to surpass $10 billion.

“It is easier now to invest in cryptocurrency than ever before,” says Nazmul Islam, Forecasting Analyst at Insider Intelligence.

“In 2021, cryptos became easier to purchase within apps consumers were already using, and while major financial institutions embraced crypto investments. Add hype surrounding meme stocks like Dogecoin to this easier accessibility, and you have a huge spike in ownership rates.”

By the end of 2022, the number of US adults who own at least one cryptocurrency will climb 19% to 33.7 million.  

That equates to 12.8% of the population, having surpassed 10% last year. The largest ownership group will be people  aged 25 to 34, followed by those ages 35 to 44. The smallest but fastest growing group will be those ages 65 and over.

“Younger investors have a genuine positive outlook on blockchain technology and are buying crypto to hold for a while, expecting prices to continue increasing in the long run,” says Islam. 

“Older investors will be more risk averse and leery of the volatile crypto market. Although, they are increasingly starting to invest in crypto as more retirement funds offer it as an option.”

Bitcoin is the most popular crypto in the US, with 25.2 million owners this year, up 16.7% over last year.

Three-quarters of crypto owners will have Bitcoin in their portfolios this year. But the currency’s share of the market will decline to 70.6% next year as rivals grow in popularity.

Meanwhile, the second largest coin, Ethereum, will have 13.1 million owners in the US this year, a gain of 26.8% over last year. 

Crypto payments

This year, 3.6 million US adults will use cryptocurrency to make a purchase, up 68.6% over last year. That means 10.7% of crypto owners will actually use a currency to make a purchase. 

“Last year was all about networks building crypto payments infrastructure,” says David Morris, Principal Analyst at Insider Intelligence.

“The growth in stablecoin usage is also helping alleviate asset volatility, and CBDC developments are spurring interest in crypto assets as a payment method.”

“We also expect that more crypto options will be layered into how people pay, like cards and digital wallets. These factors should spur high crypto payment growth rates over the next few years.”

CryptocurrenciesStaff WriterInsider Intelligence, Payments, Cryptocurrencies, Bitcoin, Ethereum, Stablecoins, US retail1 Comment