A recent study named “Crypto Asset Market Coverage Initiation: Trading & Custody,” has bullish predictions for the crypto industry in the coming year. The report found that the trading volume will likely grow by 50% in 2019 and exceed that of US Corporate Debt trading in 2018 and that it is likely to reach 10% of US Equity trading volume. Larger fees on exchanges will also come with the expansion of the market, according to the study.
The study states that:
We estimate exchange trading fee growth of 50%+ this year, from $2.1B last year to well over $3B in 2018.
Exchanges reportedly brought in an estimated $2.1 billion in revenue last year, and are expected to bring in over $3 billion in 2019.
The 14-page report also compared the fees and rates across the top exchanges, as well as their trading volume.
The report suggested that decentralized exchanges are 5 or 10 years off from becoming competitive with their centralized counterparts. The exact numbers are hard to predict and are dependent on a variety of factors. However, the study is bullish on the fundamentals of the space as well as the institutional interest. As the study’s conclusion pointed out:
Despite the prolonged bear market, investment in the ground level foundation continues unabated. With evolving understanding of the fundamentals of the market, increased regulatory certainty in the US and abroad, and fiscal policies that continue to make alternative assets more attractive, the crypto market ’s underlying infrastructure is continuing its expansion.