North America tops global crypto market with $1.3T in on-chain activity: Chainalysis

North America has maintained its position as the world’s largest cryptocurrency market, according to the latest report from blockchain analytics firm Chainalysis.

Between July 2023 and June 2024, the region received an estimated $1.3 trillion in on-chain value. As per Chainalysis, this accounts for approximately 22.5% of global cryptocurrency activity.

The report highlights the dominance of institutional players in North America. Additionally, they revealed that about 70% of the region’s activity consists of transfers exceeding $1 million.

The United States leads global crypto adoption

The United States emerges as the primary driver of North America’s crypto dominance. The country ranks fourth in Chainalysis’s annual global adoption index.

As per Chainalysis, the country’s prominence in the crypto space is attributed to several factors, including its substantial wealth, large population, deep and liquid capital markets, and thriving innovation ecosystem.

Additionally, the U.S. has an upper hand when it comes to political stability, a positive investment situation, and the U.S. dollar’s role in the global financial system.

Chainalysis notes that U.S. markets demonstrate higher volatility compared to global markets. This volatility is largely attributed to the high levels of institutional activity within the country.

The report also speaks about the impact of spot Bitcoin exchange-traded products (ETPs) in the U.S. market. The January 2024 launch of exchange-traded funds (ETFs) has driven institutional interest and inflows into Bitcoin.

Kevin Tang from BlackRock’s Digital Assets team provided insights into the importance of these ETPs, stating, “The launch of the U.S. bitcoin ETPs has been historic and speaks to the pent-up demand among investors for a low-cost, efficient, and secure way to invest in bitcoin.” 

Stablecoin activity shifts away from U.S. platforms

Despite the overall growth in the U.S. crypto market, Chainalysis observed a notable shift in stablecoin activity away from U.S.-regulated platforms. This trend may reflect barriers imposed by regulatory uncertainty surrounding stablecoins and crypto in the U.S.

The report suggests that this shift does not necessarily indicate a decline in U.S. market participation but rather speaks to the rapidly expanding role of stablecoins in emerging markets and non-U.S. jurisdictions.

Circle, the issuer of USDC stablecoin, emphasized the growing global demand for U.S. dollar-backed assets amidst the individuals outside traditional financial systems.

Canadian market trends

As per the report, the Canadian crypto market remains a major player in North America. The country has received approximately $119 billion in value during the reported period.

Canadian markets closely follow U.S. trends but with less volatility. The country shows more moderate gains during bull markets and milder retractions during bear markets.

Kunal Bhasin, Partner & Co-Lead at KPMG’s Digital Assets Center of Excellence, shared his thoughts about the Canadian crypto landscape.

Even though regulatory changes led to the exit of some major crypto businesses, Bhasin emphasized that Canadians still have access to regulated venues for getting involved with cryptocurrency.

The report concludes that North America’s future in the crypto space lies in balancing institutional momentum, regulatory clarity, and innovation.

“Institutional adoption has taken on a different flavor this cycle. It is more measured and requires significantly more diligence after last cycle’s spectacular downfall of FTX,” Claire Ching of Gemini stated.