Benzinga - The fervor surrounding cryptocurrencies continues to grow, with North America spearheading institutional activity in the crypto sector.
A research report by Chainalysis reveals that 76.9% of North America's cryptocurrency transaction volume is spurred by transfers of $1 million or more.
This institutional dominance, paired with an even split in on-chain activity between decentralized finance (DeFi) and centralized exchanges, underscores the region's strategic position in the global crypto ecosystem.
Benzinga's Future of Digital Assets conference on Nov. 14 will delve deeper into these dynamics, shedding light on the evolving landscape and fostering an understanding of the crypto sector's growth trajectory.
North America's contribution to the global crypto market is significant, accounting for 24.4% of the worldwide transaction activity between July 2022 and June 2023, amassing to an estimated $1.2 trillion in value received on-chain.
The United States leads this charge, followed by Canada, which ranks seventh globally in transaction volume.
While enthusiasm surrounding the potential launch of a spot Bitcoin (CRYPTO: BTC) ETF in the U.S. is palpable, recent inflows, when juxtaposed with the surge following BlackRock’s announcement in June, suggest a more cautious stance among investors.
Concerns surrounding Ethereum have driven outflows, contrasting starkly with Solana, which has emerged as the most favored altcoin in 2023.
The report also touches on the decline in stablecoin usage in North America since February 2023.
Despite setbacks, stablecoins remain the dominant crypto asset, representing over 50% of all on-chain transaction volumes between July 2022 and June 2023.
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However, with increasing stablecoin activities routed through non-U.S. licensed entities, there's a rising concern about U.S. regulatory oversight diminishing.
Jason Somensatto, Head of North America Public Policy at Chainalysis, emphasized the need for a prompt resolution in regulatory discussions about stablecoins.
He also pointed out the unique advantages that cryptos, including stablecoins, offer due to blockchain's inherent transparency.
The research further indicates a decline in DeFi usage in North America, attributed largely to market volatility and regulatory ambiguities.
Coinbase Inc. (NASDAQ: COIN) CEO Brian Armstrong remains optimistic about DeFi's potential, especially innovations like decentralized identity frameworks.
As crypto activities experience a dip globally, North America's position in the 2023 Global Crypto Adoption Index ranks fourth.
The region's recovery and future growth hinge significantly on regulatory clarity.
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