North America Leads the World in Crypto Usage, Says Chainalysis Report
A recent report by blockchain intelligence firm Chainalysis reveals that North America is at the forefront of cryptocurrency usage worldwide, with the United States being the main driver of activity. The region recorded a transaction volume exceeding $1 trillion between July 2022 and June 2023, including a significant contribution from Canada. In total, North America accounted for nearly 25% of the global transaction volume.
The report highlights that major institutional investors are primarily responsible for this surge in activity, representing 76.9% of the transaction volume in North America. Institutional activity is defined as transactions with a fiat value of $1 million or more.
Despite a decline in crypto activity following the FTX bankruptcy, the setback was less severe compared to the impact of the banking crisis in March when crypto-friendly banks like Silicon Valley Bank, Silvergate, and Signature suspended their operations.
Decline in Stablecoin Usage and Shift Towards Non-US Licensed Platforms
The report also reveals a decline in stablecoin usage in North America, with its proportion of on-chain transaction volume dropping from 70.3% to 48.8% over the past year. Additionally, there has been a decrease in stablecoin activity on US-licensed platforms, indicating a shift towards service providers based outside of the country.
The report suggests that the US regulators’ desire to exert regulatory control over stablecoins, given their significant role, may be driving more activity outside of the United States.
Hot Take: North America Takes the Lead in Crypto Usage as Stablecoin Activity Declines
North America has emerged as the global leader in cryptocurrency usage, with the United States playing a major role. Institutional investors are driving this surge in activity, accounting for a significant portion of the transaction volume. However, there has been a decline in stablecoin usage in the region, and a shift towards non-US licensed platforms. This may be attributed to US regulators’ efforts to exert control over stablecoins. As crypto continues to gain popularity and evolve, it will be interesting to see how North America’s dominance in the crypto space progresses.
By
By
By
By
By