Satis Group, the firm whose report generated interest last month when it predicted the future values of top digital currencies has released another report. Its latest findings are on the state of the cryptocurrency ecosystem, its prospects and challenges.
The report seen by Cryptoinfowatch stated that among the main uncertainties facing crypto investment are trading and custody. By trading, the firm meant the activities involving the acquisition and exchange of digital assets while custody means the process of securing these assets.
It highlighted the spread of exchanges, the platforms on which cryptocurrencies are traded. According to it, there have been proliferation of exchanges in many countries, but bulk of the trading activities (75 percent) go on in just 20 percent of these exchanges which have the most liquidity.
It further analyzed these exchanges which are classified as either centralized (CEX) or decentralized (DEX), explaining that they support trades either on a fiat to cryptocurrency basis or on crypto to crypto basis. It however noted that there are exchanges not supporting fiat based trades.
It stated that though DEX have not gone mainstream as CEX, they would likely become more competitive in the coming years as more infrastructural development occur. These mainly have to do with seamless usage. Decentralized exchanges are run in a trust-less manner even though some aspects such as the order books are centralized. The document stated that a number of DEX have been developed even though they are mainly still at the periphery of the market.
In an earlier report, Satis Group had predicted that trade volume of the crypto market would grow from $7.3 trillion in 2018 to $17.8 trillion in 2028. This makes the crypto industry one of the fastest growing markets. The firm worked with data from the top 20 exchanges to infer that $2.1 billion was generated from trading fees in 2017. This has been forecast to hit $3 billion by the end of this year.
According to the firm, this boost in trade volume will be catalyzed by increased institutional investor participation, growing retail adoption through innovative integration with mobile apps and trading support from larger exchanges.
The report also mentioned the major OTC desk profiles for investors willing to invest substantial sums into the crypto market. The advantage of using OTC desks is their significant liquidity and non imposition of risks. A section of the report stated that, “A majority of OTC crypto transactions are facilitated manually, with Skype being a popular means of communication. While there are dozens of OTC trading providers, ranging from one-man shows to full-fledged, regulated desks.”
Satis Group has become one of the well-known crypto analytical firms even though their predictions on the future value of coins are yet to be proven. The ICO advisory firm specializes in research on the crypto industry.