North America remains the largest crypto market globally, with an estimated $1.3 trillion in on-chain value received between the time period of July 2023 and June 2024, accounting for around 22.5% of all such activity. This, according to an update from Chainalysis.
The research report from Chainalysis noted that North America’s dominance in the crypto market is fueled by institutional activity — more so than any other region.
The research study from Chainalysis also mentioned that about 70% of the region’s crypto activity consisted of transfers “exceeding $1 million,” reflecting the influence of key financial players in the region’s crypto market.
The Chainalysis update pointed out that the majority of this activity is driven by the US, where 2024 has proven to be a “pivotal year” for crypto adoption and industry growth.
Chainalysis also stated in the report that after a bear market spurred in part by the late 2022 collapse of FTX and the March 2023 failure of Silicon Valley Bank, the North American crypto sector has made a “remarkable recovery.”
In March of 2024, the price of bitcoin (BTC) notably broke $73,000 – a new all-time high – signaling a “resurgence from a period of sustained volatility that ultimately strengthened the ecosystem’s integrity and resilience.”
In 2024, the Chainalysis report stated that the convergence of traditional finance (TradFi) and crypto was cemented, with institutional enthusiasm amplified by the introduction of spot bitcoin exchange-traded products (ETPs) in U.S. markets.
The report added that Exchange-traded funds (ETFs) in particular — which are the most popular and well-known type of ETP — have “captured the attention of retail and institutional investors alike.”
More than ever, North America’s crypto climate is marked by “substantive institutional momentum.”
The update shared by Chainalysis pointed out that established legacy financial entities such as Goldman Sachs, Fidelity, and BlackRock — who have shaped financial markets in the U.S. and globally for decades — are now “taking serious positions in the crypto space.”
According to the Chainalysis update, this marks a “critical maturation point for the industry,” as crypto is increasingly integrated into the mainstream.
The United States’ cryptocurrency markets are the “largest and most influential in the world, standing out globally by a large margin.”
As stated in the Chainalysis update, this prominence stems in no small part from the country’s “immense wealth, large population, deep and liquid capital markets, and thriving innovation ecosystem.”
The U.S. also benefits from political stability, “a favorable investment climate, and the U.S. dollar’s present role as the principal reserve currency of the international financial system.”
The report from Chainalysis further revealed that despite record activity, U.S. markets have also faced some challenges over the past year, including a noticeable shift in stablecoin activity “away from U.S.-regulated platforms.”
As stated in the report, this trend may reflect barriers imposed by “sputtering regulatory progress on stablecoins and digital assets more broadly.”
Up through 2023, the share of stablecoin transactions on U.S.-regulated exchanges had been “steadily increasing, consistent with increased stablecoin adoption globally.”
However, in 2024, this trend began to reverse.
This shift likely reflects a relative, rather than absolute, “decline in stablecoin usage within U.S. markets, given the surge in stablecoin adoption across emerging and global markets.”
The Chainalysis report further noted that significantly more stablecoin transactions are now happening “on non-U.S.-regulated exchanges, suggesting that global stablecoin adoption is outpacing U.S. growth.”
However, this shift does not necessarily “indicate a sharp decline in U.S. market participation, but instead speaks to the rapidly expanding role of stablecoins in emerging markets and non-U.S. jurisdictions.”
This regulatory clarity in regions outside the U.S. is fueling the growth of stablecoins globally, while the U.S. “risks falling behind.”
But the report clarified that the U.S. is not without progress on stablecoins entirely.
Circle referenced the stablecoin bill advanced by the House Financial Services Committee in July 2023, which could provide the “regulatory clarity needed for the U.S. market to remain competitive.”