According to a recent report by blockchain intelligence firm Chainalysis, North America is at the forefront of the global crypto market, with the United States driving the majority of the activity. The region witnessed an impressive transaction volume of over $1 trillion between July 2022 and June 2023, with Canada also making a significant contribution. In fact, North America accounted for nearly a quarter of the total global transaction volume, as highlighted by the Chainalysis report.
One interesting finding of the report is that major institutional investors play a crucial role in driving this activity, accounting for 76.9% of the transaction volume observed across North America. These institutional investors are defined as those who engage in transactions with a fiat value of $1 million or more. Their participation demonstrates the growing acceptance and confidence in cryptocurrencies within the institutional investor community.
Despite a minor setback due to the FTX bankruptcy, where there was a contraction in crypto activity within the region, the impact was relatively mild compared to the banking crisis in March. During the banking crisis, crypto-friendly banks, such as Silicon Valley Bank, Silvergate, and Signature, had to temporarily suspend their operations, causing a significant disruption to the crypto market. The resilience displayed by the North American crypto ecosystem during such challenging times reaffirms its strength and stability.
In terms of stablecoin usage, the report revealed a decline in North America. The proportion of on-chain transaction volume attributed to stablecoins dropped from 70.3% to 48.8% over the past year. This decline indicates a shift in preference towards other cryptocurrencies. Moreover, the report also highlighted a decrease in the share of stablecoin activity going to US-licensed platforms, signifying a growing trend of utilizing service providers based outside the country.
“As of June this year, 54.6% of stablecoin inflows to the top 50 crypto services went to non-US licensed platforms,” the report stated.
These findings raise questions about the regulatory environment surrounding stablecoins in the United States. It appears that US regulators are actively seeking to establish regulatory control over stablecoins due to their significant role in the crypto market. Consequently, more stablecoin-related activities are now taking place outside the United States, where regulatory guidelines may be more favorable or less stringent.
