A Satis Group report generated interest last month. In the report, it predicted the future values of top digital currencies. 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. Custody means the process of securing these assets.
Proliferation of exchanges
It highlighted the spread of exchanges, the platforms on which cryptocurrencies are traded. According to it, there has been a proliferation of exchanges in many countries. But the bulk of the trading activities (75 percent) go on in just 20 percent of these exchanges. These one-fifths have the most liquidity.
It further analyzed these exchanges, which are classified as either centralized (CEX) or decentralized (DEX). The report explained that they support trades either on a fiat to cryptocurrency basis or on a crypto to cryptocurrency basis. It should be noted, however, that some exchanges do not support fiat-based trades.
DEXes not yet mainstream
It stated that, while DEX has not yet achieved mainstream status as has CEX, they will likely become more competitive in the coming years as infrastructure development continues.These mainly have to do with seamless usage. Decentralized exchanges are run in a trustless 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 the 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.
Growth in institutional investments
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 in the crypto market. The benefit of using OTC desks is their high liquidity and lack of risk imposition. A section of the report stated that “the 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 most 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.