Chainalysis: North America leads in cryptocurrency usage

Chainalysis analysts: North America leads in cryptocurrency usage

According to analysts, the cryptocurrency market in North America is more dependent on institutional activity than in other regions

North America accounts for nearly a quarter of all cryptocurrency transaction activity totaling $1.2 trillion, Chainalysis writes in a new report.

Global transaction volume. Source: Chainalysis

The analysts estimate that the majority of the volume comes from the U.S., which ranks first globally in terms of volume. Second in the region is Canada, which ranks seventh in the global ranking.

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North American transaction volume by country. Source: Chainalysis

The report shows that the North American cryptocurrency market is more dependent on institutional activity than other regions, with almost 77% of the volume driven by transfers of $1 million or more.

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Transaction volume by service. Source: Chainalysis

Over the past year, analysts write, activity in the cryptocurrency market in this region has declined markedly. Various negative events, such as the collapse of the FTX exchange and the banking crisis, resulted in the closure of digital asset-friendly banks such as Silicon Valley Bank, Signature, and Silvergate. Most of the drop in activity was due to institutional outflows, while retail investors and professional traders kept their volumes steady.

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Distribution of transaction volume in North America among market players. Source: Chainalysis

North America has seen a decline in the use of stablecoins, which, however, remain the most popular type among cryptocurrency assets.

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Transaction volume by asset type. Source: Chainalysis

Meanwhile, U.S. regulators are looking to tighten controls on digital assets. In September, David Hirsch, head of the SEC's Crypto Assets and Cyber Division, threatened new lawsuits and investigations on behalf of the regulator, including into decentralized (DeFi) financial projects. This is having a negative impact on the popularity of DeFi services, whose transaction volumes have dropped significantly over the past year.

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Transaction volume in North America by service. Source: Chainalysis

According to the authors of the report, the introduction of regulation on cryptocurrencies in the US will play a significant role in the development of this market. Despite the fact that many cryptocurrency companies are leaving the North American region, the US and Canada remain the leaders in terms of the extent to which digital assets are distributed among the population.