North America, led by U.S. institutional investment, generated $1.3 trillion in cryptocurrency transactions last year, accounting for 22.5% of the global total. However, regulatory uncertainty around stablecoins is eroding the U.S.’s lead.
According to the latest report by Chainalysis, North America continues to assert its leading position in the global cryptocurrency market during the period from July 2023 to June 2024. The region recorded a total on-chain transaction value of $1.3 trillion, accounting for 22.5% of the total transaction value globally.
The main driver of this growth was large-scale institutional investment, especially in the US, where 70% of transactions exceeded $1 million. Canada, the second largest market in the region, also contributed significantly, with a total transaction value of $119 billion during the same period.
The US dominance in the North American cryptocurrency market is reinforced by active institutional activity related to Bitcoin and Ethereum spot ETFs. However, the market also faces significant volatility. Chainalysis points out that the US market is more sensitive to price movements than other global markets.
Cryptocurrency dominance in the US. Source: Chainalysis
“In recent quarters, the US market has shown a marked sensitivity to both bull and bear cycles. When cryptocurrency prices rise, the US market records higher growth than the global average, and vice versa when prices fall,” Chainalysis’ report said.
Stablecoin flows shift away from the US
While cryptocurrency adoption in the US is growing, the share of stablecoin trading on regulated exchanges there has dropped significantly, from around 50% in 2023 to below 40% in 2024.
Chainalysis believes that the uncertainty surrounding the regulatory framework for stablecoins in the U.S. is a major factor behind the trend. Circle, the issuer of the USDC stablecoin, said that the lack of regulatory clarity has led many stablecoin projects to seek more favorable regulatory environments in Europe and the UAE.
Stablecoins flow into US and non-US markets. Source: Chainalysis
In contrast, stablecoin trading outside the US is growing rapidly, accounting for more than 60% of all trading in non-US markets by 2024. This trend is particularly prominent in emerging markets, where stablecoins play a key role in helping users access USD without relying on the traditional banking system. Circle also confirmed that 45% of USDC in circulation by the end of 2022 will be held overseas.
The rise in stablecoin usage outside the U.S. reflects a global trend, as international markets increasingly see USD-pegged stablecoins as a store of value and a more cost-effective way to transact. Paolo Ardoino, CEO of Tether, also highlighted the important role of USDT, especially in countries facing high inflation like Argentina, where it provides financial stability amid economic uncertainty.
