Cryptocurrency Market Value Slumps Below $1 Trillion
The value of the cryptocurrency market on Monday fell below $1 trillion for the first time since January 2021, according to data site CoinMarketCap, reaching as low as $926 billion.
The global cryptocurrency market peaked at $2.9 trillion in November 2021, but it has faltered so far this year. It has lost $1 trillion in value in the last two months alone as investors ditched riskier assets in the face of high inflation and fears that interest rate raises by central banks will hamper growth.
The largest cryptocurrency, bitcoin, was down more than 10 percent on the day, falling to an 18-month low of $23,750. It is down by around 50 percent so far this year. Smaller coin ether fell over 15 percent to $1,210.
Blockchain in Media, Advertising, and Entertainment Market – Impressive Global Growth at a CAGR of 71.4% Expected Between 2021 and 2026
The blockchain in the media, advertising, and entertainment industry was valued at USD 166.6 million in 2020 and is expected to reach USD 4371.31 million by 2026 at a CAGR of 71.4% during the forecast period 2021 – 2026. Blockchain is disrupting not only the existing business models but is also enabling the development of new business models, especially in the media industry.
- The digital technologies are substantially transforming the global media and entertainment industry, especially in the areas of content production and distribution, with blockchain being the most prominent technological disruptor. According to Accenture, 55% of media and platform executives think blockchain is a top-five priority for their company. Also, 83% of executives plan to increase blockchain investments in the next three years.
- The need for blockchain in media and entertainment is increasing owing to the subsequent commoditization of content and widespread piracy of intellectual property (IP). The increasing need for eliminating intermediaries between content creators and end-users, the growing demand for secure and faster transactions, and the growing instances of data piracy in the media and entertainment, are some of the key factors driving the market.
- Further, media users are accustomed to having free access to a wide variety of content, as the media and entertainment industry is a contract-based business that places a premium on the protection of intellectual property. Also, all media segments have suffered significantly from digitization, since content can be copied and distributed quickly and without loss of quality. This is because the Digital Rights Management Systems has not yet reduced copyright infringements.
- With the advent of blockchain, this industry structure could change significantly. Blockchain technology permits bypassing content aggregators, platform providers, and royalty collection associations to a large extent. Thus market power shifts to the copyright owners. Blockchain technology has the potential to increase profits for content creators and media companies by providing real-time consumption-based pricing against assets with an immutable state and digital identity. This solution reduces transaction costs by 40-80%, thus making payment applications the leading segment among others.
- This technology also eliminates the need for intermediaries and subsequently reduces the administrative costs and time for the providers and payers. However, the lack of standardization is hindering the growth of the market to a certain extent. Also, the process of implementing new technology is expensive and time-consuming, hence restraining the market growth.
Competitive Landscape
Key Players to Focus on Introduction of New Services to Strengthen the Cryptocurrency Market Growth
The market is consolidated by major companies striving to maintain their position by focusing on new launches, collaborations & partnerships, and acquisitions. Such strategies taken up by key players are expected to strengthen its market prospects. Below is the industry development:
March 2021 – Visa Inc. aims to introduce crypto as a direct payment. With this key initiative, the company aims to accept cryptocurrencies as a payment method for the finance industry.
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