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According to new statistics from ABI Research, blockchain and cryptocurrency revenues could take a $ 2.8 billion hit by the end of 2020 as it struggles to overcome the 2018 “ crypto winter ” and the fallout from the COVID-19 pandemic.
Crypto winter is the nickname for a period that started in 2018 through 2019 where cryptocurrency markets fell and wiped out 80% of the aggregate market cap, leading to the collapse of many cryptocurrencies.
In 2020, the COVID-19 pandemic also dampened the appetite for new blockchain innovations, as well as crypto investments. ABI Research calculates a decline in blockchain revenues worldwide between 2018 and 2020 by 35%, effectively ending the “ race to the blockchain ”.
However, ABI Research says the decline in revenue won’t last long. Existing companies operating in the blockchain and cryptocurrency space now have less competition in the market because many speculative offerings were removed from the market during the crypto winter and the COVID-19 pandemic.
Michela Menting, director of digital security research at ABI Research, says stronger business models may also emerge.
“ABI Research expects the market to return to 2018 revenue levels by 2023,” says Menting.
The verticals that are expected to benefit from the market recovery include those already dealing with blockchain or cryptocurrency, as well as other emerging areas. These emerging areas include blockchain applications for supply chain and logistics management and healthcare.
Blockchain in the healthcare sector could be useful for sharing timely, relevant and authenticated information about the pandemic, especially since misinformation is widespread, ABI Research believes.
“Blockchain projects launched by the United Nations World Health Organization, along with many National Centers for Disease Control, show the usefulness of blockchain in these circumstances. Healthcare applications are expected to grow faster than expected in light of the pandemic. “
Menting adds: “The pandemic has also revealed the inadequacies and shortcomings of existing procedures, especially in terms of transparency and quality assurance. Blockchain is now a recognized technology capable of addressing these problems. Therefore, interest and demand will increase revenue for blockchain applications by focusing on manufacturing, transportation and storage, as well as retail and consumer. “
These findings come from ABI Research’s Blockchain and Distributed Ledger Technology Market Data Report. This report is part of the company’s digital security research service, which includes research, data and ABI Insights.
Market Data Spreadsheets are comprised of in-depth data, market share analysis, and highly segmented service specific forecasts to provide insights into possible opportunities.
