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Cryptocurrency Dominance Intact in U.S. But Stablecoin Patterns Evolve

Despite facing stringent regulatory measures, North America continues to dominate the global cryptocurrency landscape. A recent Chainalysis report reveals that the United States alone contributes to a staggering 24.4% of worldwide crypto transactions, solidifying its position as the world’s leading crypto market.

Dwindling U.S. Dominance in the Crypto Sector

According to a fresh report from Chainalysis, the United States remains a dominant force in the global cryptocurrency scene, accounting for a whopping 24.4% of the total transaction activity. Between July 2022 and June 2023, the U.S. registered an on-chain transaction value of approximately $1.2 trillion.

Delving deeper, institutional activities command a major portion of North America’s crypto transactions, comprising 76.9% of the volume. Interestingly, this volume is evenly divided between conventional centralized exchanges and the burgeoning decentralized finance (DeFi) sector.

Stablecoin Landscape Undergoing Transformation

Yet, not all is rosy. The crypto realm in the U.S. has witnessed a downward trend, especially after unsavory events like the FTX debacle. Matters worsened with the collapse of major U.S. banks in March this year, further denting the sector’s reputation.

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The stablecoin arena is also experiencing a tectonic shift. Chainalysis highlighted a diminishing reliance on North America’s stablecoins since February 2023. Incidents like the Silicon Valley Bank’s downfall, which had significant ties with Circle’s USDC, have severely dented confidence in American stablecoins.

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In a significant revelation, the report emphasized the changing dynamics of stablecoin inflows. Previously, U.S. licensed services were the primary destinations, but the tide seems to be turning towards non-U.S. licensed services. This transition is consequential as it has led to decreased regulatory supervision of these dollar-linked stablecoins in the U.S. landscape.

Despite several attempts by crypto-friendly politicians to introduce bills, the U.S. Congress has been notably sluggish in formulating concrete regulations for stablecoins. Addressing these regulatory challenges could be pivotal in reversing North America’s declining crypto influence.

DeFi’s Persistent Surge

On a brighter note, DeFi’s allure doesn’t seem to wane, even in the face of these challenges. The total on-chain transaction value for the year ending June 2023 was approximated at $1.2 trillion, making up slightly more than a quarter of the worldwide figure.

Furthermore, the raw transaction volume in DeFi has seen a consistent rise in the North American market, with speculative trading protocols reaping the most benefits.

North America’s Crypto Turbulence

The North American cryptocurrency scene, once glittered with the allure of Super Bowl ads and the stamp of celebrity approval, seems to have taken a darker turn as 2023 unfolds. The U.S., in particular, stands out as the epicenter of this turbulence.

Recall May 2022, a month that sent shockwaves through the crypto community. LUNA, a prominent player in the market, collapsed, wiping out a staggering $60 billion from the crypto valuation. Many who rode the LUNA wave to riches were left high and dry, their newfound fortunes evaporating almost overnight.

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The storm didn’t stop there. Fast forward to November 2022, the crypto industry was rocked again by explosive revelations leading to the dramatic fall of FTX, a leading crypto exchange. The poster child of FTX, Sam Bankman Fried, once lauded as a wunderkind of the crypto world, found himself embroiled in legal proceedings, facing trial in the U.S.

This sequence of events paints a somber picture of North America’s crypto landscape, a stark contrast to the optimism and enthusiasm witnessed just a year prior.


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Donald Haymatter

Donald Haymatter is an expert broker with 15+ years of experience. He stays up-to-date with the latest financial news and trends to help clients make informed investment decisions. Donald is known for his analytical approach and personalized investment advice. Outside of work, he enjoys reading and mentoring young professionals.

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