US drives North American crypto dominance despite regional stablecoin decline

North America has once again claimed the top spot as the world’s most significant crypto market thanks to increased institutional activity in the US, according to an Oct. 17 Chainalysis report.

Between July 2023 and June 2024, North America generated $1.3 trillion in on-chain value, representing 22.5% of the global total. Chainalysis credits this dominance to heightened institutional activity, especially in the US, where large-scale transactions exceeding $1 million account for 70% of the region’s crypto transfers.

While the US leads the North American crypto landscape, Canada follows, with $119 billion in on-chain value during the same period.

US dominance

The US remains dominant in North America’s crypto market, primarily due to significant institutional activities around spot Bitcoin and Ethereum exchange-traded funds (ETFs).

However, this leadership is not without challenges. Chainalysis notes that the US market has been more volatile than its global counterparts.

The report stated:

“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.”

Although crypto adoption has grown in the US, the country has seen a sharp drop in stablecoin holdings on exchanges. The share of stablecoin transactions on US-regulated exchanges fell from about 50% in 2023 to under 40% in 2024.

Chainalysis reported that this decline could be linked to the regulatory uncertainty surrounding these digital assets in the US. Circle, the issuer of the USDC stablecoin, has pointed out that unclear regulations in the US have prompted stablecoin projects to seek more favorable environments in Europe and the UAE.

Stablecoin use rises outside the US

In contrast, stablecoin transactions have surged outside the US, accounting for more than 60% of transactions in non-US markets by 2024.

This trend is particularly strong in developing markets, where stablecoins provide users access to US dollars without relying on traditional banking systems. Circle confirmed this shift, reporting that 45% of US dollar banknotes in circulation were held abroad as of late 2022.

The rising use of stablecoins outside the US reflects a broader trend. Global markets increasingly view US dollar-backed stablecoins as both a store of value and a more affordable method of transaction.

Tether’s CEO Paolo Ardoino has also emphasized the importance of USDT in inflation-hit countries like Argentina, where it offers stability during economic uncertainty.

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