Last year the cryptocurrency industry experienced a harsh industry-wide drop in asset prices. However, the prices have since recovered, and the blockchain technology is expected to rack billions of dollars in growth.
Blockchain Revenue to Hit $10 Billion in 2023
ABI Research conducted a study, and its findings indicated that there are big things ahead for blockchain technology. The firm has predicted that blockchain revenues will grow in the next six years. Categories that will drive blockchain revenue include industrial blockchain applications, financial services, as well as consulting services. ABI has indicated that blockchain revenues could hit $10 billion in the next few years.
Things are interesting currently for blockchain development despite the slump of initial coin offerings in 2018. Growing interest from institutional investors in blockchain technology has helped the growth. Some mainstream companies have started incorporating the underlying technology in their operations. For instance, enterprise players such as JPMorgan Chase, Amazon, and Walmart have made a move towards the adoption of blockchain.
Last year, the largest cryptocurrency asset, Bitcoin, experienced a massive price fall of over 50%. Other digital assets also experienced a similar slump. However, the price of Bitcoin has recovered this year and has regained some ground in the market. The rest of the cryptocurrencies have equally recovered, although not to the same magnitude as Bitcoin.
Blockchain Investment Shifting to Venture Capital Funding
According to ABI, the multi-billion dollar revenue expected from blockchain will profit most companies employing the technology. ABI research director, Michela Menting. indicates that there are several ways revenue is derived from blockchain. She points towards consultancy, transaction fees, and blockchain frameworks as the main methods of generating revenue.
Currently, there is a shift in trend from ICOs to venture capital funding. Venture capital funding is already taking on ICOs and has increased with 620 rounds generating $3.1 billion in 2018, up from 153 rounds in 2017 that raised $850 million. Tighter regulations and taxation on cryptocurrencies in various countries is prompting investors to adopt VC-based investments.
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