North America secures the top spot as the world’s leading crypto market due to heightened institutional activity in the United States, as reported by Chainalysis on Oct. 17.
From July 2023 to June 2024, North America contributed $1.3 trillion in on-chain value, making up 22.5% of the global total. This dominance is attributed to increased institutional engagement, particularly in the US, where transactions exceeding $1 million constitute 70% of the region’s crypto transfers.
Although the US leads in the North American crypto sector, Canada follows with $119 billion in on-chain value during the same timeframe.
US Dominance in North America
The US maintains its leading position in the North American crypto market due to substantial institutional involvement in spot Bitcoin and Ethereum ETFs.
However, this dominance comes with challenges, as noted by Chainalysis citing higher volatility in the US market compared to global markets.
According to the report:
“In recent quarters, the U.S. has demonstrated heightened sensitivity to both bull and bear markets.”
While crypto adoption grows in the US, stablecoin holdings on exchanges have decreased, with regulatory uncertainties potentially contributing to this decline.
Stablecoin Usage Outside the US
Stablecoin transactions have surged outside the US, accounting for over 60% of transactions in non-US markets by 2024.
Developing markets show a strong trend in utilizing stablecoins to access US dollars independently of traditional banking systems. This shift signifies global markets viewing US dollar-backed stablecoins as both a store of value and a cost-effective transaction method.
Tether’s CEO Paolo Ardoino emphasizes the importance of USDT in inflation-hit countries like Argentina, providing stability amid economic uncertainties.
