North America remains the world’s largest cryptocurrency market despite ongoing regulatory actions.
According to a recent report by Chainalysis, the US continues to be the largest cryptocurrency market, accounting for 24.4% of global trading volume.
The report published on October 23 stated that there was an estimated $1.2 trillion worth of transactions approved in the US between July 2022 and June 2023. Moreover, institutional transactions make up 76.9% of North America’s crypto trading volume, and activity is split between centralized exchanges and DeFi.
Stablecoins Moving Away from the US
However, the report also noted that crypto activity has decreased due to the fight of financial regulators against cryptos following the major crashes last year.
“There are data suggesting that crypto activity in North America has declined over the past year following negative developments like the crash of FTX.”
This year, activity in major US banks further decreased following the crashes in March. Additionally, stablecoin activity is also shifting.
“Since February 2023, we observed a relative decline in North America’s use of stablecoins compared to other digital assets.”
Trust in US dollar-pegged stablecoins was shaken with the collapse of Silicon Valley Bank, which carried a significant risk.
DeFi Adoption is on the Rise
Despite the regulatory challenges mentioned above, DeFi adoption is on the rise in the North America region.
It was reported that the total on-chain value that changed hands between July 2022 and June 2023 was an estimated $1.2 trillion, and this number is just slightly more than 24% of the global figure.
At the same time, DeFi usage in the North America region continues to increase, especially in terms of raw trading volume for protocols where high speculative trading is conducted.