North America has reclaimed the top spot as the world’s top crypto market thanks to increased institutional activity in the US, according to an October 17 Chainalysis report. report.
Between July 2023 and June 2024, North America generated $1.3 trillion in supply chain value, representing 22.5% of the global total. Chainalysis attributes this dominance to increased institutional activity, especially in the US, where large-scale transactions exceeding $1 million account for 70% of crypto transfers in the region.
While the US leads the North American crypto landscape, Canada follows suit, reaching $119 billion in on-chain value over the same period.
American dominance
The US remains dominant in the North American crypto market, largely due to significant institutional activity 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 US has shown increased sensitivity to both bull and bear markets. When cryptocurrency prices rise, the US market shows larger increases in growth than the global market – and the reverse is true when cryptocurrency markets fall.”
While cryptocurrency adoption has increased in the US, the country has seen a sharp decline in stablecoin holdings on exchanges. The share of stablecoin transactions on US-regulated exchanges fell from around 50% in 2023 to less than 40% in 2024.
Chainalysis reported that this decline could be related to 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 pushed stablecoin projects to seek more favorable environments in Europe and the UAE.
The use of stablecoins is increasing outside the US
In contrast, stablecoin transactions outside the US have skyrocketed and will account for more than 60% of transactions in non-US markets by 2024.
This trend is especially strong in emerging markets, where stablecoins offer users access to US dollars without relying on traditional banking systems. Circle confirmed this shift, reporting that at the end of 2022, 45% of US dollar banknotes in circulation were held abroad.
The increasing use of stablecoins outside the US reflects a broader trend. Global markets are increasingly viewing US dollar-backed stablecoins as both a store of value and a more affordable transaction method.
Paolo Ardoino, CEO of Tether, has also highlighted the importance of USDT in inflation-hit countries like Argentina, where it provides stability during economic uncertainty.