HEADLINES500
HEADLINES

Cambridge Centre for Alternative Finance releases its 2nd Global Cryptoasset Benchmark Study

Cambridge Centre for Alternative Finance releases its 2nd Global Cryptoasset Benchmark Study

The Cambridge Centre for Alternative Finance, the global and interdisciplinary research center based at the University of Cambridge Judge Business School, released its 2nd Global Cryptoasset Benchmark Study found that the overall user accounts at service providers now surpass 139 million with a minimum of 35 million identity-verified users.

As per the study, data shows that the ID-verified users have increased about four times in the 2017 and rising two-fold in the initial nine months of 2018. However, out of the total ID-verified users, just 38 percent of them can be regarded as active.

The study found out that multi-coin support has almost grown two-fold to 84 percent of all service providers in 2018, up from 47 percent in 2017, a trend mainly propelled by the emergence of common standards on some crypto asset platforms that has effected in a fast growth in the supply of tokens.

The crypto asset has witnessed a considerable increase in terms of full-time equivalent (FTE) employees with the growth rates reaching 164 percent on a year-on-year basis propelled by the storage and exchange segments. Company size has also grown considerably as the average company currently employs an average number of 20 employees compared to just five staff in 2016.

The study also found that while 21 percent of surveyed companies have their legal headquarters in a different country than their operational headquarters, just 7 percent have their legal headquarters in a different region, indicating that while some companies may be willing to relocate to by countries to make the most of regulatory arbitrage, a majority of the companies are not ready to relocate to far off countries.

The study also found that individuals account for the highest share of the user base, mainly served by exchanges and multi-segment companies, storage providers and payment service providers have the largest share of business users among service providers, which is 32 percent and 26 percent respectively.

The share of high-value transactions worth more than $1,000 for international payments processed off-chain increased to 46 percent in 2017 to 34 percent in 2016, a trend that is reflected by onchain transactions as well.

While the average on-chain transaction size of Bitcoin has steadily increased since 2016, other crypto asset systems have been reducing average amounts per transaction.

According to the study, 69 percent of respondent payment service providers have extant relationships with recognized conventional payment networks, however, challenges of entering and continuing great banking relationships remain the main concern, mostly for exchanges.