According to a recent report from Chainalysis, North America has once again emerged as the leading global crypto market, fueled by a surge in institutional activity in the United States. The report, published on October 17, highlights significant developments in the region over the past year.
From July 2023 to June 2024, North America accounted for $1.3 trillion in on-chain value, which comprises approximately 22.5% of the global total. This dominance is largely attributed to substantial institutional participation, particularly in the US, where transactions exceeding $1 million represent 70% of regional crypto transfers.
The Undeniable Power of the US Crypto Market
The US continues to lead North America’s cryptocurrency landscape, primarily influenced by the growing interest in spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, this leadership comes with its own set of challenges. The Chainalysis report illustrates that the US market has experienced higher volatility compared to other global markets.
Market Volatility and Regulatory Challenges
The research indicates a notable trend in market sensitivity:
“In recent quarters, the U.S. has demonstrated heightened sensitivity to both bull and bear markets. When cryptocurrency prices rise, the U.S. market shows larger increases in growth than the global market — and the inverse is true when cryptocurrency markets decline.”
Despite the overall adoption of cryptocurrencies increasing in the United States, there has been a significant drop in stablecoin holdings across exchanges. Specifically, the percentage of stablecoin transactions on US-regulated exchanges declined from approximately 50% in 2023 to under 40% in 2024. This downturn is believed to be linked to regulatory uncertainties regarding digital assets in the country.
Shifting Trends: Stablecoins Beyond the US
Conversely, stablecoin transactions have flourished outside the United States, surpassing 60% of the transaction volume in non-US markets by 2024. This growth is particularly pronounced in developing regions, where stablecoins provide a means for users to access US dollar liquidity without depending on traditional banking infrastructures.
Global Acceptance of Stablecoins
Circle, the issuer of USDC, has indicated significant shifts, reporting that as of late 2022, approximately 45% of US dollar banknotes were held outside the United States. This increase highlights a broader global movement, where US dollar-backed stablecoins are increasingly viewed as reliable stores of value and cost-effective transactional tools.
Importance of Stablecoins in Inflation-Hit Countries
Tether CEO Paolo Ardoino has underlined the critical role of USDT in countries facing high inflation, such as Argentina, where it can provide financial stability during turbulent economic periods.
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