The Cambridge Centre for Alternative Finance (CCAF) has released its second edition of the Global Cryptoasset Benchmarking Study, offering a comprehensive look into the rapidly evolving cryptocurrency ecosystem. The report analyzes four core pillars of the industry—mining, storage, exchanges, and payments—using proprietary data from over 180 companies and individuals across 47 countries. Despite a dramatic market cooldown following the 2017–2018 surge, the study reveals sustained structural growth, increasing user adoption, and a maturing regulatory landscape.
Explosive User Growth with Low Engagement Rates
One of the most striking findings is the massive influx of new users into the crypto space. As of late 2018, service providers collectively reported more than 139 million user accounts, with over 35 million verified users—a nearly fourfold increase compared to 2017. This number doubled again in the first three quarters of 2018 alone, highlighting the sector’s rapid expansion during the bull market.
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However, despite this surge in account creation, active participation remains limited. Only 38% of users are classified as active, a figure that underscores a significant gap between interest and sustained usage. This passive engagement suggests many users may be speculative investors rather than active participants in decentralized networks or payment systems.
Cross-Sector Expansion and Service Integration
The crypto industry is becoming increasingly interconnected. In 2017, just 31% of crypto service providers operated across multiple segments. By 2018, that figure had jumped to 57%, indicating a strong trend toward integrated platforms offering combined services such as trading, custody, staking, and payments.
This convergence reflects both customer demand for one-stop solutions and businesses’ strategic moves to diversify revenue streams. For example, exchanges now commonly offer wallet services and earn yield on held assets, while mining operations expand into cloud hashing and infrastructure support.
Such integration not only improves user experience but also strengthens business resilience in volatile markets. As the ecosystem matures, these multi-service models are likely to become the standard rather than the exception.
Multi-Coin Support Surges Amid Token Proliferation
Support for multiple cryptocurrencies has nearly doubled—from 47% of service providers in 2017 to 84% in 2018. This shift is largely driven by the rise of token standards like ERC-20 on Ethereum, which have enabled thousands of new digital assets to be created with relative ease.
The result? A dramatic increase in token supply and greater demand for platforms that can handle diverse asset types. Exchanges, wallets, and payment processors now face technical and compliance challenges in listing and managing these tokens, yet they also gain competitive advantage by offering broader access.
This trend signals growing sophistication among service providers and aligns with the broader movement toward decentralized finance (DeFi), where interoperability and multi-asset functionality are essential.
Mining Operations Embrace Renewable Energy
Cryptocurrency mining, particularly proof-of-work (PoW) systems like Bitcoin, has long faced criticism for high energy consumption. The CCAF report estimates that the top six PoW cryptocurrencies consumed between 52 and 111 terawatt-hours (TWh) per year as of November 2018. The midpoint—82 TWh—is comparable to Belgium’s annual electricity usage but represents less than 0.01% of global energy production.
Crucially, the study finds that a significant portion of mining energy comes from renewable sources, especially in regions with surplus hydroelectric or wind power. Miners often locate operations in areas like Sichuan (China), Iceland, and the Pacific Northwest (U.S.), where clean energy is abundant and inexpensive.
This strategic use of renewables not only reduces environmental impact but also lowers operational costs, making mining more sustainable and economically viable over time.
Geographic Decentralization Challenges Assumptions
Contrary to popular belief, mining activity is less geographically concentrated than commonly assumed. While certain regions dominate due to favorable energy costs and regulatory environments, the report highlights a diverse distribution of mining operations across continents.
This decentralization enhances network security by reducing the risk of single-point control or regulatory crackdowns. It also reflects the global nature of blockchain infrastructure, where technical capability and access to cheap power matter more than political borders.
Industry Maturity Through Self-Regulation
Perhaps the most telling sign of maturation is the rise of self-regulatory initiatives. Even in the absence of comprehensive legal frameworks, many crypto firms are proactively adopting compliance measures such as KYC (Know Your Customer), AML (Anti-Money Laundering), and cold storage best practices.
These voluntary efforts demonstrate a shift from a Wild West mentality to a more responsible and professional industry ethos. Alongside improved cybersecurity, audit transparency, and insurance offerings, self-regulation builds trust with users, regulators, and institutional investors.
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Frequently Asked Questions (FAQ)
Q: What is the Global Cryptoasset Benchmarking Study?
A: It’s a research initiative by the Cambridge Centre for Alternative Finance (CCAF) that analyzes key aspects of the cryptocurrency industry—including mining, exchanges, storage, and payments—using data from global service providers.
Q: How many crypto users were active as of 2018?
A: Out of over 139 million total accounts, only about 38% were considered active users, indicating high sign-up rates but relatively low ongoing engagement.
Q: Are crypto mining operations environmentally sustainable?
A: A significant share of mining energy comes from renewable sources, particularly in regions with excess hydroelectric power. While energy use is substantial, it remains a tiny fraction of global consumption.
Q: Is cryptocurrency mining centralized in one country?
A: No—the report shows mining is less geographically concentrated than widely believed, with operations spread across multiple countries based on energy cost and availability.
Q: Why are more platforms supporting multiple cryptocurrencies?
A: The rise of token standards like ERC-20 has led to an explosion in digital assets. Supporting multiple coins meets user demand and enables participation in emerging sectors like DeFi and NFTs.
Q: What does self-regulation mean for the crypto industry?
A: It reflects growing maturity, as companies adopt KYC, AML, and security protocols voluntarily—building trust even before formal regulations are in place.
The CCAF study paints a picture of an industry at a pivotal stage: rapidly expanding in scale and complexity while laying the groundwork for long-term sustainability and legitimacy. With rising multi-service integration, greener mining practices, and stronger self-governance, the crypto ecosystem is evolving beyond speculation into a structured financial frontier.
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