The cryptocurrency market faces a slowdown, with annual growth rates for crypto exchanges projected to drop from 26% in 2024 to 4.3% by 2028. Revenue is expected to reach $71.7 billion by 2028, while the user base could approach one billion. This signals market maturity, driving a focus on innovation, user experience, and sustainable growth.
The global cryptocurrency market is undergoing a transformative phase as new data reveals a significant slowdown in its growth trajectory. While the market has historically seen rapid expansion and unparalleled interest, recent trends suggest a marked deceleration, according to a comprehensive analysis by CryptoPresales.com and Statista Market Insights.
The year 2024 proved to be a mixed bag for the cryptocurrency sector. The first half of the year showcased notable optimism, fuelled by institutional interest, Bitcoin’s price resilience, and the much-anticipated launch of spot Bitcoin ETFs. Despite these positive signals, crypto exchanges faced a persistent decline in trading volumes, leading to a substantial correction in revenue growth expectations.
CryptoPresales.com reports that the annual growth rate for crypto exchanges, which stood at 26% in 2024, has dropped threefold from previous years. This downturn signals the beginning of a broader slowdown in the sector, with projections indicating a fivefold decline to an annual growth rate of just 4.3% by 2028.
Historical context and revenue projections
Cryptocurrency exchange revenues experienced an unprecedented surge of 2,170% between 2017 and 2021. This explosive growth was driven by widespread crypto adoption and major financial institutions integrating digital assets into their portfolios. However, the bear market of 2022 brought a steep 43% decline in revenues, falling to $20.1 billion—the sharpest drop in the industry’s history.
Following a rebound in 2023, with revenues doubling to $40.7 billion, growth rates are now projected to taper off significantly. Statista Market Insights forecasts the following key milestones:
- 2025: Revenue to approach $60 billion, with growth rates falling to 15.6%.
- 2026: Growth rates to halve further to 8.6%, with revenues reaching $64.7 billion.
- 2028: Global crypto exchange revenues to cap at $71.7 billion, with the annual growth rate shrinking to 4.3%.
Average revenue per user and user growth trends
The average revenue per user (ARPU) in the crypto exchange sector has also seen fluctuations. Between 2020 and 2021, ARPU ranged between $100 and $120. In contrast, this figure is expected to settle at $61.8 in 2024, with a gradual increase to $72.2 by 2028.
Despite the slowing revenue growth, the user base of crypto exchanges continues to expand. The number of individuals trading cryptocurrencies surged to 670 million in 2023, a 240 million increase from the previous year. By the end of 2024, this figure is expected to surpass 833 million. Statista anticipates that nearly one billion users will trade on crypto exchanges by 2028, even as user growth rates slow.
Industry implications and future outlook
The findings highlight a shift from rapid expansion to a more stabilised market environment. The slowing growth rate, though significant, underscores the maturing nature of the cryptocurrency ecosystem. Crypto exchanges, trading platforms, and financial institutions may need to pivot their strategies to adapt to evolving user demands and market dynamics.
This slowdown presents an opportunity for innovation in areas such as improved user experience, regulatory compliance, and diversification of services. As trading volumes adjust, the focus may shift towards creating sustainable growth models and addressing the needs of an increasingly diverse user base.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
