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The Covid-19 pandemic appears to have boosted the global crypto-ATM market. According to Allied Market Research, the size of the crypto-ATM market is expected to grow by approximately 60% through 2030 as a result of increased adoption
According to the aforementioned report, the trend seen in 2020 is expected to "continue in the post-pandemic" market. Furthermore, the report estimated the global ATM market to be worth $35.80 billion in 2020. By 2030, the figure is expected to rise to $3.55 billion.
El Salvador is once again leading the charge.
Other technological advancements, according to Allied Market Research, will also pave the way for lucrative opportunities in the industry. The same thing happened in 2021, when Visa and Mastercard entered the crypto-space. Indeed, as a result of institutional partnerships, several platforms, including BlockFi, are now offering crypto-credit cards.
Crypto-ATMs, like online transactions, require users to go through KYC verifications. When a user operates an ATM, an auto-generated receipt will include the user's public and private keys.
Crypto-ATMs, like online transactions, require users to go through KYC verifications. When a user operates an ATM, an auto-generated receipt will include the user's public and private keys.
It’s worth noting, however, that the report outlined benefits like increased convenience and reduced transaction times, along with security and transaction flexibility as the growth factors behind crypto-ATMs.
There’s a caveat, however. The ATM market is set to be limited until more countries, like El Salvador, accept cryptocurrencies as legal tender. Additionally, the report found that the limited availability of ATMs and kiosks also hampers the growth of the market.
On the other hand, as more startups and institutional investors enter the sector, a push for the crypto-ATM market is likely.
Currently, the U.S has over 85% of the globe’s crypto-ATMs at close to 26,000 locations. In fact, September alone saw the figure hike by 6.8%.
The U.S is followed by Canada with a 6.6% share of the global ATM market. El Salvador follows next, thanks to a 0.7% share with ATMs at over 200 locations.
ATM manufacturer Chivo ATM reportedly installed its first 230 ATMs in September as a result of El Salvador's policy decision. However, Genesis Coin remains the global leader, with over 11,000 ATM installations, as operators continue to see a surge in business.
It is also worth noting that the majority of these machines support Bitcoin as a cryptocurrency, with only a few supporting other altcoins.
However, does an increase in crypto-ATM installations correlate with Bitcoin's price movement?
What, however, explains the previously mentioned increase in crypto-ATMs? Most of the factors that contribute to this are related to the ease of doing business and the removal of regulatory barriers. Then there's the issue of adoption to consider. Increased usage has frequently coincided with an increase in such ATMs.
Does the crypto-asset’s price, Bitcoin, for example, come into consideration, however?
Look at the price movement of Bitcoin between 1 April 2021 and 15 October 2021, a period during which the number of BTC ATMs rose from around 18,000 to 29,500.
In April, Bitcoin was hovering close to the $60,000-level. In July, the market price of Bitcoin had been slashed in half, before moving north of $55,000 in October again.
Therefore, as expected, there doesn’t seem to be a direct correction with ATM installations and Bitcoin prices.
