North America Holds Dominance in Crypto Market with Institutional Transactions and Strategic Position
According to a recent research report by Chainalysis, North America continues to spearhead institutional activity in the cryptocurrency sector. The report reveals that a staggering 76.9% of North America’s cryptocurrency transaction volume comes from transfers of $1 million or more. This institutional dominance, combined with a roughly equal split in on-chain activity between decentralized finance (DeFi) and centralized exchanges, underscores the strategic position of the region within the global crypto ecosystem.
To delve deeper into these dynamics and provide insights into the evolving landscape, Benzinga is hosting the Future of Digital Assets conference on November 14. The conference aims to foster an understanding of the crypto sector’s growth trajectory and shed light on North America’s role in shaping it.
North America’s contribution to the global crypto market is significant, accounting for 24.4% of worldwide transaction activity between July 2022 and June 2023. Overall, the region received an estimated $1.2 trillion in value on-chain during this period. The United States leads this charge, with Canada ranking seventh globally in transaction volume.
While there is a palpable enthusiasm surrounding the potential launch of a spot Bitcoin ETF in the U.S., recent inflows suggest a more cautious stance among investors compared to the surge that followed BlackRock’s announcement in June. Concerns surrounding Ethereum have prompted outflows, in stark contrast to the rising popularity of Solana, which has emerged as the most favored altcoin in 2023.
The research report also highlights a decline in stablecoin usage in North America since February 2023. Despite this setback, stablecoins remain the dominant crypto asset, representing over 50% of all on-chain transaction volumes between July 2022 and June 2023. However, the increasing routing of stablecoin activity through non-U.S. licensed entities raises concerns about U.S. regulatory oversight diminishing.
Jason Somensatto, Head of North America Public Policy at Chainalysis, emphasized the urgent need for regulatory discussions on stablecoins to reach a prompt resolution. He also highlighted the unique advantages that cryptocurrencies, including stablecoins, offer due to the transparency inherent in blockchain technology.
The research further indicates a decline in DeFi usage in North America, largely attributed to market volatility and regulatory ambiguities. However, Brian Armstrong, CEO of Coinbase Inc., remains optimistic about DeFi’s potential, particularly innovations such as decentralized identity frameworks.
As crypto activities experience a dip globally, North America has secured the fourth position in the 2023 Global Crypto Adoption Index. The region’s recovery and future growth heavily depend on the clarity of regulatory frameworks.
Stay up to date on AI trends, SEC actions, regulations, and institutional adoption in the crypto space by joining Benzinga’s Fintech Deal Day & Awards on November 13 and attending the Future of Digital Assets conference on November 14 in New York City. Secure your early bird discounted tickets now!
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